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Billionaire Steven Cohen chooses these 3 “Strong Buy” actions
Last week, the NASDAQ fell below 13,200, losing the net from its all-time high, reached earlier this month, at 6.4%. If this trend continues, the index will slide into correction territory, a loss of 10% from its peak. So what exactly is going on? Basically, these are mixed signals. The COVID-19 pandemic is starting to wane and the economy is starting to reopen – bright spots that should boost markets. But an economic restart brings inflationary pressures: more people working means more consumers with money in their pockets, and the massive stimulus bills passed in recent months – and the bill currently before Congress, which totals $ 1.9 trillion – have invested additional funds. people’s wallets and liquidity in the economy. There is pent-up demand there, and people with money to spend, and both factors will help drive up the prices. We can see an effect of all of this in the bond market, where the 10-year Treasury bill is down 1.4%, near a one-year high, and it has been trending higher in recent weeks. It may be a case of jumping the gun, however, as Federal Reserve Chairman Jerome Powell said in Senate testimony that he has no plans to raise interest rates. In other words, these are confusing times. For those who feel lost in all the market fog, investment gurus can offer a sense of clarity. No one more than billionaire Steven Cohen. Cohen’s investment firm, Point72 Asset Management, relies on a strategy that involves stock market investments as well as a more macro approach. That very strategy solidified Cohen’s status as a well-respected investment powerhouse, with the guru earning $ 1.4 billion in 2020 from a 16% gain in Point72’s main hedge fund. With that in mind, we focused on Point72’s latest 13F deposit, which discloses the shares the fund picked up in the fourth quarter. Focusing on three tickers in particular, the TipRanks database revealed that each has obtained a consensus from “Strong Buy” analysts and has significant upside potential. Array Technologies (ARRY) The first new position is in Array Technologies, a “green technology” company providing tracking technology for large scale solar power projects. It is not enough to deploy enough photovoltaic solar panels to supply a power utility; the signs must follow the sun in the sky and take into account seasonal differences in its path. Array provides solutions to these problems with its DuraTrack and SmarTrack products. Array boasts that its tracking systems will improve the life efficiency of solar panel projects and that its SmarTrack system can increase energy production by 5% in total. The company has clearly impressed its customers, as it has facilities in 30 countries, in more than 900 large-scale projects. President Biden is expected to take executive action to boost green economic policy at the expense of the fossil fuel industry, and Array could potentially benefit from this political environment. The company’s stock is new to the markets, having held its IPO in October of last year. The event has been described as the “ first major solar IPO ” in the United States for 2020, and it was a success. The shares opened at $ 22 and closed the day at $ 36. The company sold 7 million shares, raising $ 154 million, while an additional 40.5 million shares were put on the market by Oaktree Capital. Oaktree is the investment manager who had a controlling stake in the company since 2016. Among Array fans is Steven Cohen. With 531,589 shares in the fourth quarter, Point72’s new ARRY position is worth over $ 19.7 million at current valuation. Guggenheim analyst Shahriar Pourreza also seems confident about the company’s growth prospects, noting that the stock appears undervalued. “Renewable energy companies have seen a significant inflow of capital as a result of the ‘blue wave’ and Democrat control over the White House and both houses of Congress; However, ARRY continues to negotiate a significant discount from its peers, “noted the 5-star analyst. Pourreza added,” We continue to be optimistic about ARRY’s growth prospects driven by 1) share gains. market share of trackers versus fixed tilt systems, 2) ARRY market share gains within the tracker industry, 3) ARRY’s great opportunity in the less penetrated international market, 4) the ability to monetize their existing customer base for the long term through extended warranties, software upgrades, etc. which are very marginal accretive. In line with those bullish comments, Pourreza is assigning a buy price to ARRY, and his price target of $ 59 implies a 59% rise from current levels. (To view Pourreza’s track record, click here) New stocks in growth industries tend to grab the attention of professionals on Wall Street, and Array has registered 8 reviews since its IPO. Of these, 6 are buys and 2 are takes, making the stock’s consensus rating a strong buy. The average price target, at $ 53.75, suggests an upside margin of around 45% over the next 12 months. (See ARRY stock market analysis on TipRanks) Paya Holdings (PAYA) Cohen’s second choice we’re looking at is Paya Holdings, a North American payment processing service. The company offers integrated payment solutions for B2B operations across education, government, healthcare, nonprofit, and utility industries. Paya claims more than $ 30 billion in payments processed annually, for more than 100,000 customers. In mid-October last year, Paya completed its public market stint through a SPAC (Special Acquisition Company) merger with FinTech Acquisition Corporation III. Cohen stands squarely with the bulls on this one. During the fourth quarter, Point72 acquired 3,288,843 shares, bringing the size of the stake to 4,489,443 shares. After this 365% increase, the value of the position is now approximately $ 54 million. Mark Palmer, 5-star analyst at BTIG, is impressed with Paya’s mid-term outlook, writing: “We expect PAYA to generate revenue growth among teens over the next several years, with Integrated Solutions on the verge to grow in the mid-1920s and payment services are expected to grow to single digits in the middle. At the same time, the company’s operating expenses are expected to grow against a backdrop of 5%, in our opinion. As such, we believe that PAYA’s Adjusted EBITDA growth will be north of 20% over the next few years and that its Adjusted EBITDA margins will drop from 25% to 28% by year 21, up from 25% in 2019. ”Palmer sets a price target of $ 18 on PAYA stocks, indicating his confidence in 49% growth for the coming year, and rates the stocks as a buy. (To see Palmer’s track record, click here) PAYA’s Strong Buy analyst consensus rating is unanimous, based on 4 Buy-side reviews established in recent weeks. The shares have an average price target of $ 16, which suggests upside potential of around 33% from the current share price of $ 12.06. (See PAYA stock market analysis on TipRanks) Dicerna Pharma (DRNA) Last but not least, Dicerna Pharma, a clinical-stage biotechnology company focused on the discovery, research and development of treatments based on its platform. -RNA interference technological form (RNAi). The company has 4 drug candidates in various stages of clinical trials and 6 more in preclinical studies. The company’s pipeline has clearly caught the attention of Steven Cohen – set to take a new stake totaling 2.366 million shares. This stake is worth $ 63.8 million at current values. The most distant drug candidate along the Dicerna pipeline is nedosiran (DCR-PHXC), which is currently being studied as a treatment for PH, or primary hyperoxaluria – a group of several genetic disorders that cause life-threatening kidney problems. by overproduction of oxalate. Nedosiran inhibits the enzyme responsible for this overproduction and is the subject of a phase 3 trial. The first results are expected in mid-21 and, if all goes according to plan, a deposit of NDA for nedosiran is expected towards the end of 3Q21. Covering Leerink’s stock, analyst Mani Foroohar sees nedosiran as the key to the company’s short-term future. “We anticipate that nedosiran could see its approval in mid-2022, placing the drug about a year and a half behind competitor Oxlumo (ALNY, MP) in PH1 … A positive result will turn DRNA into a rare disease trading company in an attractive duopoly, ”noted Foroohar. To that end, Foroohar rates DRNA an outperformance (i.e. Buy), and its price target of $ 45 suggests a potential year-over-year upside of 66%. (To watch Foroohar’s Overall, Dicerna Pharma has registered 4 buy notices, which Strong Buy’s unanimous support for. DRNA shares are trading for $ 26.98, and their average price target of $ 38 represents up ~ 41% over the next 12 months (See DRNA stock market analysis on TipRanks) Gathers all information about TipRank stocks only that of featured analysts ntent is intended to be used for informational purposes only It is very important to do your own analysis before making any investment.
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