Ricky Sandler’s Top 5 Stock Picks

4. Nuance Communications, Inc. (NASDAQ: NUAN)

Value: $321,344,000
Percent of Ricky Sandler’s 13F Portfolio: 3.01%
No. of Hedge Fund Holders: 60

Massachusetts-based Nuance ranks 4th in the list of Ricky Sandler’s top 10 stock picks and portfolio as of the end of the fourth quarter. The company makes software for healthcare, speech recognition, AI and customer support. The stock recently jumped after Wedbush analyst Daniel Ives added Nuance to his best ideas list. The analyst has an Outperform rating for the stock, with a price target of $65.

The company is also getting the attention of the smart money, as 60 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 45 funds a quarter earlier.

Artisan Mid Cap Fund, in their Q4 2020 investor letter, mentioned Nuance Communications, Inc. (NASDAQ: NUAN). Here is what Artisan Mid Cap Fund has to say about Nuance Communications, Inc. in their Q4 2020 investor letter:

“We started new investment campaigns in Nuance Communications in Q4. Nuance Communications is a leader in automated voice transcription technologies. The company’s relatively new management team has spent the past couple of years divesting sub-par businesses, paying down high yield debt and refocusing the company on higher growth, cloud-based recurring revenue opportunities primarily in health care, but also in large enterprises. The company has recently launched Dragon Ambient Experience (DAX), a tool physicians can use to automatically document patient encounters efficiently, accurately and consistently in telehealth and in-office settings. Health care practitioners can spend over 20% of their time documenting, and DAX can virtually eliminate this duty so more time can be dedicated to patient care. DAX is very early in its launch and could be a very meaningful profit cycle driver over time.”