Key Points
- Next-gen technology investments can lead to early retirement.
- The biggest hurdle is knowing the right ones to invest in; following smart money can mitigate risk.
- Insiders and institutions are vested in these tightly held names, and institutional holdings are growing.
Investing in next-gen technologies can lead to early retirement, but knowing which stock will be the next Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), or NVIDIA (NASDAQ: NVDA) is hard. One way to mitigate the risk is to follow the smart money. Smart money is represented by insiders, institutions and analysts with a vested interest in the business performance and investment returns.
Among the qualities that make a next-gen technology investable are proven use cases and industry demand, which all stocks on today’s list have. At least one of these stocks will likely fail to deliver on its promising technology, but at least one will be a home run. Considering that stocks such as Google, Amazon, and NVIDIA have gained quadruple digits since their early start-up phases, it’s likely that a prudent investment in this portfolio will deliver market-beating returns over the next decade or two.
Security evolves with Evolv Technologies
Event and location security is getting disrupted by Evolv Technologies (NASDAQ: EVLV). Its AI-enhanced threat detection systems are proving both effective and have expanded use cases. Where traditional metal detection creates chokepoints, Evolv Technologies systems allow for virtually free-flowing crowds and multiple checkpoints within a security zone. Imagine a metal detector at every entrance and traffic pattern within an event zone, providing complex overlapping security and AI-powered data insight.
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Evolv is a tightly held stock with a high 10% inside ownership. Insiders have been selling shares, but their activity is consistent with other tech stocks and businesses that utilize share-based compensation. Institutions own another 52% of the stock, and their holdings are growing. The institutions have been buying on balance since the IPO, and a spike in volume in Q3 2023 is consistent with a rising level of support. The latest earnings release included better-than-expected results and an improvement in guidance. Analysts rate this stock a consensus Moderate Buy and see its price moving 25% higher at the low end of their range.
Amprius Technologies is an electrifying business
Amprius Technologies (NYSE: AMPX) is disrupting the EV battery industry with its proprietary silicon anode lithium batteries. The batteries provide more energy density and higher discharge rates than traditional batteries, making them perfect for aerospace (among other) applications. The company’s clients include the Army, Airbus, and Teledyne in applications ranging from drones to EV aircraft.
Insiders own about 15% of the stock, and institutions 2.6%. The institutional ownership is small but offset by rapidly accelerating volume. The institutional volume has ramped higher for 5 consecutive quarters and will likely continue to do so, given the outlook for the business. The analysts see this stock advancing 200% at the low end of their target range and nearly 300% at the consensus. The last earnings report included a 240% increase in revenue and a narrowing loss.
Joby Aviation could take off at any time
Joby Aviation (NYSE: JOBY) is a potential client of Amprius Technology. Its EVTOL aircraft would benefit from increased density and longer range. Regardless, the company is gaining traction and delivered the 1st of its products to the US Airforce months ahead of schedule. Regarding commercial use, the certification process is advancing nicely and is on track to have the company running flights by early 2025.
Insiders own about 50% of this stock, including major shareholders, and institutions another 36%. Institutional activity is mixed quarterly but bullish on balance for the last year. Noticeable spikes in volume in Q3 2022 and Q3 2023 indicated a solid and rising support base.
UiPath automates workflows from end to end
UiPath (NYSE: PATH) is a robotic and AI-powered automation leader. Its platforms can automate simple and repetitive workflows from end to end, including interacting with employees. Insiders own about 31% of the stock, institutions about 60%, and they bought on balance for 9 consecutive quarters leading up to the current. Q4 activity is mixed but light; the company’s Q3 results are due in late November and may reinvigorate the market. Analysts rate the stock a solid Hold and see it advancing 10% at the midpoint.
Symbotic warehouse automation gains traction
Symbotic (NASDAQ: SYM) is a warehouse-focused robotics, AI and automation business with clients like Walmart, Target and Albertson’s. The company recently inked a deal with major investor Softbank to create a joint venture that will help accelerate sales and profitability. As it is, the company is growing at a hyper-scale pace and is expected to produce profits in F2024. Insiders own about 41% of this stock, including private equity and VC firms, with institutional holdings near 74%. Analysts rate it a consensus moderate Buy and see it advancing about 35% at the midpoint target.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Amprius Technologies (AMPX) | $1.82 | +7.1% | N/A | -4.04 | Buy | $8.17 |
| Joby Aviation (JOBY) | $7.69 | +6.4% | N/A | -10.99 | Moderate Buy | $8.35 |
| UiPath (PATH) | $13.25 | +4.0% | N/A | -82.81 | Hold | $17.50 |
| Evolv Technologies (EVLV) | $3.79 | +8.9% | N/A | -27.07 | Hold | $5.60 |
| Symbotic (SYM) | $23.99 | +4.1% | N/A | -399.83 | Moderate Buy | $42.54 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of Expertise
Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past Experience
Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.
