In this article, we will discuss the top 5 stocks to buy today according to Stephen Perkins’ Toronado Partners. If you want to read our detailed analysis of Perkins’ history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stocks to Buy Today According to Stephen Perkins’ Toronado Partners.
5. Impinj, Inc. (NASDAQ: PI)
Perkins’ Stake Value: $35,323,000
Percentage of Stephen Perkins’ 13F Portfolio: 10.29%
Number of Hedge Fund Holders: 20
Impinj, Inc. (NASDAQ: PI) is a cloud connection platform provider. It was founded in 2000 and is placed fifth on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. Shares of Impinj, Inc. (NASDAQ: PI) are up 130.95% in the past 12 months.
On July 28, Impinj, Inc. (NASDAQ: PI) announced earnings for the second quarter of 2021. It posted earnings per share of $0.11, beating the market predictions by $0.15. Revenue over the period was $47.3 million, up 78.5% year over year, surpassing the estimates by $4.61 million. On July 29, Needham analyst James Ricchiuti lowered its price target on Impinj, Inc. (NASDAQ: PI) to $55 from $66 and kept a “Buy” rating on the shares. The analyst points out that while the business outperformed expectations in the second quarter, its third-quarter projection was in line with expectations, implying that it will continue to have wafer shortages that prohibit it from achieving customer demand, which continues to outstrip supply.
The hedge fund managed by Stephen Perkins owns 684,679 shares in Impinj, Inc. (NASDAQ: PI), worth over $35.32 million, representing 10.29% of their portfolio. Toronado Partners has increased its stake in the firm by 6% in the second quarter of 2021. Daniel Patrick Gibson’s Sylebra Capital Management is the biggest stakeholder in Impinj, Inc. (NASDAQ: PI) with 4.40 million shares, worth $226.86 million.
4. Tenable Holdings, Inc. (NASDAQ: TENB)
Perkins’ Stake Value: $39,152,000
Percentage of Stephen Perkins’ 13F Portfolio: 11.41%
Number of Hedge Fund Holders: 33
Tenable Holdings, Inc. (NASDAQ: TENB) provides cyber exposure solutions. It was incorporated in 2002 and stands fourth on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. Tenable Holdings, Inc. (NASDAQ: TENB) shares have offered investors more than 25.61% in returns over the past 12 months.
On August 25, FBN Securities analyst Shebly Seyrafi initiated coverage of Tenable Holdings, Inc. (NASDAQ: TENB) with an “Outperform” rating and gave a price target of $60. On July 30, Tenable Holdings, Inc. (NASDAQ: TENB) declared earnings for the second quarter of 2021. It reported earnings per share of $0.09, beating the analysts’ expectations by $0.04. Revenue for the second quarter was $130.26 million, surpassing the market expectations by $4.73 million.
The hedge fund managed by Stephen Perkins owns 946,832 shares in Tenable Holdings, Inc. (NASDAQ: TENB), worth over $39.15 million, representing 11.41% of their portfolio. Toronado Partners has increased its stake in the firm by 4% in the second quarter of 2021. Trinity Industries, Inc. (NYSE: TRN) saw an increase in hedge fund sentiment recently. The number of long hedge fund positions increased to 33 in the second quarter of 2021, compared to 32 positions in the previous quarter.
3. Magnachip Semiconductor Corporation (NYSE: MX)
Perkins’ Stake Value: $39,698,000
Percentage of Stephen Perkins’ 13F Portfolio: 11.57%
Number of Hedge Fund Holders: 35
Magnachip Semiconductor Corporation (NYSE: MX) manufactures and designs analog and mixed-signal semiconductor platform solutions. The company was founded in 2004 and is placed third on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. Stephen Perkins’ bet on Magnachip Semiconductor Corporation (NYSE: MX) is also paying off. Shares of the company surged 37.82% over the last 12 months.
On August 5, Magnachip Semiconductor Corporation (NYSE: MX) announced earnings for the second quarter of 2021. It posted earnings per share of $0.15, missing the market predictions by $0.05. Revenue for the second quarter was $113.88 million, down 4.2% YoY, missing the estimates by $17.22 million.
Stephen Perkins’ Toronado Partners currently holds 1.66 million shares of Magnachip Semiconductor Corporation (NYSE: MX), worth $39.70 million. Overall, hedge funds are loading up on Magnachip Semiconductor Corporation (NYSE: MX), as 35 out of 873 funds tracked by Insider Monkey held stakes in the company in the second quarter of 2021, compared to 30 funds a quarter earlier.
Wasatch Global Investors, in its first-quarter 2021 investor letter, mentioned Magnachip Semiconductor Corporation (NYSE: MX). Here is what the fund said:
“Magnachip Semiconductor Corp. (MX) also contributed to Fund performance. The company designs, develops and manufactures mixed-signal and digital multimedia semiconductors. We think Magnachip is a classic “growth at a reasonable price” (GARP) company. The stock was a laggard in 2020, but our belief was that Wall Street underappreciated the company’s earnings and that the P/E ratio would exceed expectations going forward. In the first quarter, we think Magnachip benefited from the realization that the company is a steady—if not spectacular—grower as there was a rotation in preference away from higher-priced growth stocks and toward lower-priced growth stocks. The stock also benefited from news that the company has agreed to be acquired.”
2. GDS Holdings Limited (NASDAQ: GDS)
Perkins’ Stake Value: $40,881,000
Percentage of Stephen Perkins’ 13F Portfolio: 11.91%
Number of Hedge Fund Holders: 38
GDS Holdings Limited (NASDAQ: GDS) constructs and operates data centers in the People’s Republic of China, along with its subsidiaries. The company was founded in 2001, and it stands second on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. GDS Holdings Limited (NASDAQ: GDS) currently has a market capitalization of $11.72 billion.
On August 19, RBC Capital analyst Jonathan Atkin lowered its price target on GDS Holdings Limited (NASDAQ: GDS) to $100 from $122 but kept an “Outperform” rating on the shares. In a research note, the analyst tells investors that the company’s second-quarter revenues were in line with estimates, and management observed a “strong” demand environment. As a result, Atkin maintains his bullish outlook for the stock but cuts his forecast EBITDA multiple from 18 to 15 to properly reflect country risk and economic uncertainty.
The hedge fund chaired by Stephen Perkins owns 520,845 shares in the company worth over $40.89 million, representing 11.91% of their investment portfolio. Toronado Partners has increased its stake in GDS Holdings Limited (NASDAQ: GDS) by 15% in the second quarter of 2021. According to our database, the number of GDS Holdings Limited (NASDAQ: GDS) long hedge funds positions decreased in the second quarter of 2021. There were 38 hedge funds that hold a position in GDS Holdings Limited (NASDAQ: GDS) compared to 40 funds in the first quarter of 2021.
1. Mitek Systems, Inc. (NASDAQ: MITK)
Perkins’ Stake Value: $44,623,000
Percentage of Stephen Perkins’ 13F Portfolio: 13%
Number of Hedge Fund Holders: 17
Mitek Systems, Inc. (NASDAQ: MITK) is a multinational company that develops, promotes, and sells mobile image capture and digital identity verification products. The company was incorporated in 1986 and is ranked first on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. Shares of Mitek Systems, Inc. (NASDAQ: MITK) surged 95.83% in the past 12 months.
On August 12, H.C. Wainwright analyst Scott Buck initiated coverage of Mitek Systems, Inc. (NASDAQ: MITK) with a “Buy” rating and gave a price target of $27. On July 29, Mitek Systems, Inc. (NASDAQ: MITK) reported earnings for the third quarter of 2021. It posted earnings per share of $0.23, beating the estimates by $0.07.
Toronado Partners holds 2.32 million shares in Mitek Systems, Inc. (NASDAQ: MITK), worth $44.62 million, representing 13% of their portfolio. Mitek Systems, Inc. (NASDAQ: MITK) saw an increase in hedge fund sentiment recently. The number of hedge fund positions increased to 17 in the second quarter of 2021 compared to 15 positions in the previous quarter.
You can also take a peek at 10 Best Tech Growth Stocks to Buy Right Now and 10 Best Tech Stocks to Buy According to Stanley Druckenmiller
