Sometimes struggling stocks can quickly turn around, demonstrating astronomical gains. This week, Rent the Runway (NASDAQ:RENT) has achieved exactly such a feat. The fashion rental and retail innovator recently reported fourth-quarter earnings. Although the company failed to meet Wall Street estimates, its impressive Q4 revenue came in at $75.8 million, finishing well above the $74.1 million analysts had predicted. Even with mixed results, RENT stock closed up by more than 160% today. It’s safe to say that Rent the Runway can take a bow after this performance.
Starting the week at penny-stock price levels and now trading at more than $19 per share, it’s hard not to be impressed by this stock’s gains. Rent the Runway leadership is also optimistic that this growth can continue. As TipRanks reports:
“The company’s management remained upbeat and sees FY24 as a transformative year. Rent the Runway has managed to reduce fixed costs, and it is transitioning towards a capital-light business model. As a result of these initiatives, the company expects to reach a free cash flow breakeven point in FY24.”
With things suddenly looking up for the company, the institutional investors who previously bet on RENT are enjoying some excellent returns. Who are these top shareholders? Let’s take a look.
Top Investors in RENT Stock
Institutional sentiment toward RENT stock hasn’t been positive recently, although that may change soon. Data from WhaleWisdom shows that the number of funds holding shares has fallen since the previous quarter, as has the number of 13F shares and percentage of ownership. While the number of closed positions dropped more than 15% during Q4, so did the number of new positions.
Still, some firms remain fully behind Rent the Runway. Here are the top institutional investors betting big on RENT stock:
- Bain Capital Venture Investors: 8.17 million shares. Bain did not make any changes to its RENT stock position in Q4.
- Goldstone Yisroel Mordechai: 6.72 million shares. Goldstone added 921,645 shares of RENT during Q4.
- Highland Management Partners VIII Limited Partnership: 4.25 million shares. Highland sold 847,978 shares in Q4.
- T. Rowe Price Investment Management (NASDAQ:TROW): 4.21 million shares. T. Rowe Price sold 100,000 shares during Q4.
- Technology Crossover Management VIII: 3.94 million shares. Technology Crossover made no changes to its position in Q4.
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On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
