Freedom looks at top small-cap holdings among hedge funds; most are below $20 a share

Freedom Broker, at the request of Oninvest, has analyzed which small cap stocks are most widely held by hedge funds as of the end of the fourth quarter. The sample includes 15 names with market capitalizations below $6 billion as of then, with 13 of them offering Wall Street target prices of $20 per share or less.

Primo Brands

Held by 123 hedge funds

Primo Brands describes itself as a leading producer of branded beverages in North America. Its portfolio includes the Primo, Pure Life, and Mountain Valley brands. For 2025, the company reported net revenue of $6.7 billion, up 29.3% year over year, largely thanks to a merger with BlueTriton Brands in November 2024, the company stated. Net income from continuing operations reached $80.4 million versus a loss of $12.6 million a year earlier.

Primo Brands shares have risen more than 38% year to date. Ten Wall Street firms rate the stock “buy,” while three rate it “hold.” The average target price of $26.80 per share implies upside of nearly 22.5% versus the closing price on Thursday.

Terns Pharmaceuticals

Held by 112 hedge funds

Biotech Terns develops drugs targeting obesity and cancer. Its lead candidate, TERN-701, is currently being tested in early-stage clinical trials in patients with chronic myeloid leukemia. The company is not yet generating revenue, according to its third-quarter earnings, the most recent available.

Terns shares have gained about 5% year to date. Still, Wall Street sentiment is very bullish: 11 houses rate the stock “buy.” The average target price of $58.11 per share implies roughly 38% upside.

Dauch Corporation

Held by 101 hedge funds

Dauch Corporation supplies powertrain components, as well as metalworking products for electric, hybrid, and internal combustion vehicles. For 2025, the company reported a 4.6% decline in sales to $5.84 billion, and a net loss of $19.7 million, versus net income of $35.0 million a year earlier. In February, Dauch completed its acquisition of UK peer Dowlais Group. Including the partial contribution from the deal, the U.S. company guides for revenue of $10.3-10.7 billion in 2026.

Dauch shares have fallen 5.2% year to date. Six Wall Street firms rate the stock “hold,” while five rate it “buy.” The average target price of $9.64 per share implies about 65% upside versus current levels.

ProPetro Holding

Held by 90 hedge funds

ProPetro provides services to oil and gas companies. Revenue fell about 12% in 2025 to $1.27 billion. The company reported net income of $824.0 million versus a loss of $137.9 million a year earlier.

ProPetro shares have gained more than 30% year to date. Four Wall Street firms rate the stock “buy” versus four “hold” ratings. The average target price of $14.00 per share implies about 11% upside.

Adtran Holdings

Held by 86 hedge funds 

Adtran Holdings is the parent company of Adtran, a provider of communications technology for voice, data, video, and internet networks. In 2025, the company reported revenue growth of more than 17.5% to $1.08 billion. Meanwhile, the net loss was cut to a twelfth of the last-year level, to minus $36.2 million.

The stock has gained 18% year to date. Six Wall Street firms rate the shares “buy,” three rate “hold,” and one “sell.” The average target price of $13.77 per share implies nearly 37% upside.

Helix Energy Solutions

Held by 83 hedge funds 

Helix provides specialized offshore energy services, including well intervention, robotics, and field decommissioning. In 2025, revenue declined about 5% to $1.29 billion, while net income fell nearly 45% to $30.8 million.

Helix shares have climbed 46% year to date. Four Wall Street firms rate the stock “buy,” while two rate it “hold.” The average target price of $13.33 per share implies roughly 45% upside.

Nextdoor Holdings

Held by 80 hedge funds

Nextdoor operates a neighborhood-focused social network. In 2025, revenue rose 4% to $258 million, while the net loss narrowed to about three fifths of the last-year level at $54 million. Last year, EMJ Capital, the hedge fund behind the revival of "meme mania," called the company “one of the most misunderstood platforms in the market,” which has yet to recognize its potential in AI.

Nextdoor shares have fallen more than 20.5% year to date. Four Wall Street firms rate the stock “hold” versus one “buy” rating. The average target price of $2.58 per share implies roughly 50% upside.

Lindblad Expeditions 

Held by 78 hedge funds 

Lindblad Expeditions, in partnership with National Geographic, specializes in expeditions and educational travel. In 2025, revenue rose 20% to $771 million, while adjusted EBITDA increased 38% to $126 million. CEO Natalya Leahy was quoted as saying that "we delivered the strongest performance in our company's history." The stock has gained 26% year to date. Overall, four Wall Street houses cover the stock, all rating “buy.” The average target price of $25.50 per share implies roughly 40% upside.

Green Plains

Held by 78 hedge funds

Green Plains converts agricultural crops into low-carbon biofuels and high-protein animal feed ingredients. Its revenue declined nearly 15% in 2025 to $2 billion. Green Plains shares have risen nearly 55% year to date. Four Wall Street firms rate the stock “buy,” three “hold,” and one “sell.” The average target price of $14.50 per share is slightly below the current market price.

Evolent Health

Held by 77 hedge funds

Evolent Health develops software and analytics tools that help insurers select the most effective and cost-efficient treatments for patients, including oncology, cardiology, and genetic diagnostics. The company's revenue declined nearly 27% last year to $1.88 billion.

The stock has fallen 15.6% year to date. Fourteen Wall Street firms rate the shares “buy” versus just two “hold” calls. The average target price of $5.18 per share implies roughly 52% upside versus the Thursday closing price.

Great Lakes Dredge & Dock

Held by 77 hedge funds

Great Lakes describes itself as the largest provider of dredging services in the U.S. In 2025, its revenue rose 16.5% to $888.3 million, while net income increased more than 28% to $73.5 million. In February, the company agreed to be acquired by private energy company Saltchuk Resources for $17 per share. The deal is expected to close in the second quarter, after which the stock will be delisted.

Shares have risen nearly 29% year to date. Four Wall Street firms rate the stock “hold,” while one rates it “buy.” The average target price of $17.17 per share implies about 1.5% upside.

Gossamer Bio

Held by 75 hedge funds

Biotech Gossamer Bio develops therapies for pulmonary hypertension. In September, the company signed an option agreement to acquire Respira Therapeutics, which is developing another treatment targeting the same disease group. Gossamer Bio is not yet generating revenue.

Shares have plunged 83% year to date. Four Wall Street firms rate the stock “buy,” four rate it “hold,” and one rates it “sell.” The average target price of $4.40 per share is nearly nine times the current price.

Sable Offshore

Held by 75 hedge funds

Oil and gas company Sable Offshore is developing the promising Santa Ynez offshore field in federal waters off California. For 2025, the company reported a net loss of $410.2 million versus a loss of $617.3 million in 2024.

Shares have gained more than 50% year to date. Seven Wall Street firms cover the stock: six rate it “buy” versus a single “hold.” The average target price of $23.17 per share implies roughly 67.3% upside as of the Thursday close.

Blend Labs

Held by 75 hedge funds

Blend provides cloud-based software for financial services companies. Its clients include Wells Fargo, U.S. Bank, M&T Bank, and Truist. The company has not yet released full-year 2025 results. In the third quarter, revenue declined 1% year over year to $32.9 million but exceeded the company’s guidance.

Blend shares have fallen nearly 43% year to date. Five Wall Street firms rate the stock “buy” versus a pair of “hold” recommendations. The average target price of $4.68 per share implies upside of about 175%.

Sweetgreen

Held by 75 hedge funds

Sweetgreen operates a chain of healthy-food restaurants. In 2025, revenue totaled $679.5 million, roughly unchanged from the previous year, while the net loss widened 48% to $134.1 million. CEO Jonathan Neman said the results fell short of company expectations and that the company is "moving with urgency through the ‘Sweet Growth Transformation Plan’ to strengthen the core of the business," including revisions to the menu.

Sweetgreen shares have declined nearly 15% year to date. Ten Wall Street firms rate the stock “hold,” three “buy,” and one “sell.” The average target price of $7.90 per share implies about 24.5% upside versus the Thursday closing price.