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Sometimes even the most beleaguered stocks can perform a phoenix-like rise, soaring to great heights. The latest Cinderella story belongs to Rent the Runway (NASDAQ:RENT), which has defied the odds with a dazzling display of fourth-quarter earnings. Despite falling short of Wall Street expectations, the company’s Q4 revenue of $75.8 million outshone the predicted $74.1 million, resulting in RENT stock surging over 160% in a single day. It’s a performance deserving of a standing ovation.
From humble penny-stock beginnings to now commanding over $19 per share, Rent the Runway’s trajectory is indeed a sight to behold. And as optimism courses through the ranks of Rent the Runway’s leadership, the future seems promising. 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 Rent the Runway’s fortunes looking up, institutional investors who maintained faith in RENT are reaping the rewards of their conviction. Let’s delve into who these top shareholders are.
Leading Figures Backing RENT Stock
Recent sentiment from institutional investors toward RENT stock may have been tepid, but a shift appears imminent. Data from WhaleWisdom indicates a decrease in the number of funds holding shares and the percentage of ownership in Q4. While both closed and new positions saw reductions during this period, there are stalwart firms that continue to champion Rent the Runway. Here are the top institutional investors banking on RENT:
- Bain Capital Venture Investors: 8.17 million shares, maintaining their position in Q4
- Goldstone Yisroel Mordechai: 6.72 million shares, acquiring 921,645 more shares in Q4
- Highland Management Partners VIII Limited Partnership: 4.25 million shares, selling 847,978 shares in Q4
- T. Rowe Price Investment Management (NASDAQ:TROW): 4.21 million shares, offloading 100,000 shares in Q4
- Technology Crossover Management VIII: 3.94 million shares, holding steady in Q4
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Further Reading: Penny Stocks — Navigating Potential Rewards and Pitfalls
As of the publication date, Samuel O’Brient did not own any positions related to the securities discussed here. The views expressed are his own and align with InvestorPlace.com’s Publishing Guidelines.