Billionaires Are Betting on These Five Under-$10 Stocks

#4. Regions Financial Corp (NYSE:RF)

– Billionaires With Long Positions (as of June 30): 6

– Aggregate Value of Billionaires’ Holdings (as of June 30): $150.21 Million

The number of billionaire money managers with stakes in Regions Financial Corp (NYSE:RF) decreased to six from seven during the second quarter of 2016. Similarly, the aggregate value of those stakes dropped by around 4% quarter-over-quarter to $150.21 million despite a gain of 9% in the value of Regions Financial’s shares during that time. The shares of the Alabama-based financial holding company, which operates in the South, Midwest and Texas, are up by 2% thus far in 2016. In mid-August, analysts at Bernstein downgraded Regions Financial to ‘Market Perform’ from ‘Outperform’, citing improved valuation. Moreover, Bernstein analysts, who have a price target of $9.50 on Regions, believe banks will be impacted by an eventual downturn in credit metrics. Bernstein also cited reduced expectations that the Federal Reserve will increase interest rates in the near-term, though more-recent indicators suggest that may not be correct. Richard S. Pzena’s Pzena Investment Management was the owner of 30.40 million shares of Regions Financial Corp (NYSE:RF) at the end of the June quarter.

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#3. Brocade Communications Systems Inc. (NASDAQ:BRCD)

– Billionaires With Long Positions (as of June 30): 6

– Aggregate Value of Billionaires’ Holdings (as of June 30): $332.30 Million

There were six billionaire money managers followed by Insider Monkey invested in Brocade Communications Systems Inc. (NASDAQ:BRCD) both at the end of the first and second quarters of 2016. However, the overall value of billionaires’ equity investments in Brocade rose by nearly 8% quarter-over-quarter to $332.30 million in the second quarter, despite a 12% decrease in the value of Brocade’s shares during the period. Hence, some billionaires increased their exposure to the supplier of networking hardware, software and services during the June quarter. In an attempt to strengthen its Internet Protocol Networking product portfolio, Brocade completed the acquisition of Ruckus in late-May, adding Ruckus’ wireless products and services to its networking solutions. In late-August, analysts at BMO Capital Markets upped their price target on Brocade to $10 from $9 and reiterated their ‘Market Perform’ rating on the company after Brocade beat bottom- and top-line results in the previous quarter, partially owing to the aforementioned acquisition. Brocade shares are down by a little less than 1% so far in 2016. Ken Griffin’s Citadel Advisors reported ownership of 11.40 million shares of Brocade Communications Systems Inc. (NASDAQ:BRCD) through the latest round of 13F filings.

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