Is BM Technologies (BMTX) A Smart Long-Term Buy?

Cedar Creek Partners LLC, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of 0.5% was recorded by the fund for the third quarter of 2021, outperforming the NASDAQ Index, which delivered a -0.4% return for the same period. The fund also outperformed the S&P 500 (SPY) Index’s 0.6% return and the Russell Micro Cap’s -5.0%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Cedar Creek Partners, in its Q3 2021 investor letter, mentioned BM Technologies, Inc. (NYSE: BMTX) and discussed its stance on the firm. BM Technologies, Inc. is a New York, New York-based mobile banking platform operator with a $164.9 million market capitalization. BMTX delivered a -3.77% return since the beginning of the year, while its 12-month returns are up by 27.57%. The stock closed at $13.51 per share on November 26, 2021.

Here is what Cedar Creek Partners  has to say about BM Technologies, Inc.  in its Q3 2021 investor letter:

“We meaningfully increased one position – BM Technologies (BMTX). While we may not like the company’s name, we do like the business it is in. The BM actually refers to its prior name BankMobile, we unfortunately cannot help but think of the abbreviation for bowel movement. We will use the ticker symbol when referring to the company. BMTX was originally created as a subsidiary of Customers Bancorp (CUBI). The original plan was to spin it off to shareholders but that later changed to selling it to Megalith Financial Acquisition Corp, a SPAC. BMTX has developed a fintech banking platform which provides digital banking and disbursement services to consumers and students in the United States. It facilitates deposits and banking products and services between customers and partner banks. The company provides access to a suite of banking products, including checking, savings, personal loans, credit cards, and student refinancing. They are not a traditional bank. It is a white label platform for other companies such as T-Mobile.”

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Based on our calculations, BM Technologies, Inc. (NYSE: BMTX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. BMTX was in 6 hedge fund portfolios at the end of the third quarter of 2021, compared to 12 funds in the previous quarter. BM Technologies, Inc. (NYSE:BMTX) delivered a 37.02% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.