In this article, we will take a look at the 10 large-cap stocks billionaires like the least.
Stock markets in the United States have been on an upward trajectory for the last six weeks with improvements in the macroeconomic environment. With the Federal Reserve meeting to be held on December 12-13, it is widely expected that the interest rates will be maintained at a 22-year high of 5.25%-5.5% for the third time. Majority of market participants anticipate the Fed to cut rates in May 2024. Goldman Sachs expects 2 rate cuts in 2024, starting in Q3, while Bank of America expects rate cuts to begin in June, similar to Morgan Stanely which expects rate cuts in mid-2024.
In November, the Consumer Price Index (CPI) surpassed consensus estimates of 0.0% with 0.1%, caused by the gains in shelter, food, and medical care prices. Declining oil prices helped keep the increase in check. Core CPI, which excludes volatile food and energy categories, was in-line with the expectations and rose 0.3% and 4.0% on month-over-month and year-over-year basis, respectively.
Olu Sonola, head of U.S. regional economics at Fitch Ratings, doesn’t expect today’s print to affect the Fed’s decision tomorrow.
“Goods and energy deflation continue to be the much-needed gift that keeps on giving. However, the acceleration in core services inflation across both shelter and non-shelter services is a reminder that the sustained downward path in core services inflation that the Fed wants to see is still not within reach. The trend is still undoubtedly encouraging, but the fine details here will sow some doubts.”
The stock markets behaved erratically during 2023 as well with major indices going up and down (mostly up) with the macroeconomic and geopolitical developments. The last Fed meeting, going to be held this week, is expected to maintain interest rates at the current level. Investors and analysts are watching closely to ascertain Fed’s tone to ascertain the probable timing of rate cuts. With a strong Labor Department’s monthly jobs report that exceeded estimates for new job additions in November, and this year’s lowest core PCE increase, major stock indices in the United States had another week of positive close, which has led to six consecutive weeks of growth. S&P 500 and Nasdaq Composite indices hit their highest levels since early 2022 and closed 20.4% and 38.67% up on December 8, respectively. You can read more about this here.
The stocks that have made it onto our list of 10 large-cap stocks billionaires like the least, mostly belong to the Financials sector and include some of the biggest financial services and banking corporations across the world. It includes leading Japanese banking giants, Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG), and Sumitomo Mitsui Financial Grp, Inc. (NYSE:SMFG), couple of European energy companies, Eni S.p.A. (NYSE:E), and Equinor ASA (NYSE:EQNR), and several Canadian banks, among others. You can check out our list of the 15 Undervalued Large-Cap Stocks Billionaires Like the Most here.
Photo by Christian Dubovan on Unsplash
Methodology
To compile our list of the 10 large-cap stocks billionaires like the least, we first made a list of stocks with market capitalization of more than $50.0 billion. Then, the number of billionaires that owned their shares as of September 2023 was determined through Insider Monkey’s database. Out of these, the stocks with the least billionaire investors were selected. The stocks on our list have been ranked in descending order of billionaire ownership.
10. Toronto-Dominion Bank (NYSE:TD)
Number of Billionaire Holders: 5
Based in Toronto, Ontario, Toronto-Dominion Bank (NYSE:TD) is a leading banking and financial services provider offering a full range of financial products and services to more than 27.5 million customers with a focus on retail banking services in the United States and Canada. It had C$1.96 trillion in assets as of October 31, 2023.
Toronto-Dominion Bank has a history of more than 2 decades of uninterrupted dividend payments. On November 30, the board of directors of the company declared a regular quarterly dividend of C$1.02 per share which represents a yield of 5.05% based on the share price on December 8.
Toronto-Dominion Bank also released its financial results for the quarter ended October 31, 2023. Its total revenue declined by 16% y-o-y to C$13.2 billion, while net income shrunk by 57% y-o-y to $2.9 billion.
Toronto-Dominion Bank shares were held by 5 billionaires with total shares held by them valued at $66 million, as of September 30.
9. The Bank of Nova Scotia (NYSE:BNS)
Number of Billionaire Holders: 5
Toronto, Ontario-based The Bank of Nova Scotia (NYSE:BNS) is a leading bank in the Americas and the only bank with operations in Canada, US, and the Pacific Alliance countries. It offers advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. Its total assets amounted to nearly C$1.4 trillion, as of October 31, 2023.
On November 28, The Bank of Nova Scotia released the financial results for three months ended October 31. Its total revenue increased by 9% y-o-y to C$8.3 billion, while its net income shrunk 34% y-o-y to C$1.4 billion.
The board of directors of The Bank of Nova Scotia declared a quarterly dividend of C$1.06 per common share. The bank declared its initial dividend at the rate of 3% per annum on July 1, 1833, and has made payments continuously since.
As of Q3 2023, 11 hedge funds owned The Bank of Nova Scotia shares valued at $100.0 million. Two Sigma Advisors was the leading hedge fund shareholder with ownership of 0.55 million shares valued at $25 million.
8. Bank of Montreal (NYSE:BMO)
Number of Billionaire Holders: 5
Toronto, Canada-based Bank of Montreal (NYSE:BMO) is a leading bank in North America providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. It had total assets of C$1.3 trillion, as of October 31.
On December 1, Bank of Montreal released its financial results for Q3 2023. It generated a revenue of C$8.4 billion and a net income of C$1.6 billion. The board of directors of the company also increased its regular quarterly dividend payout by 6% to C$1.51 per share.
As of September 30, Bank of Montreal shares were owned by 10 of the 910 hedge funds tracked by Insider Monkey, as compared to 15 in the previous quarter. Waratah Capital Advisors was the largest hedge fund shareholder with ownership of 0.30 million shares valued at $25 million.
7. Sumitomo Mitsui Financial Grp, Inc. (NYSE:SMFG)
Number of Billionaire Holders: 5
Founded in 2002, Tokyo, Japan-based Sumitomo Mitsui Financial Grp, Inc. is a global financial group that develops operations in a wide range of fields, including banking, leasing, securities, credit cards, and consumer finance.
On November 14, Sumitomo Mitsui Financial Grp, Inc. released its financial results for six months ended September 30, 2023. Its ordinary income went up by 54% y-o-y to ¥4.5 trillion, while it reported a net income of ¥526 billion. It also increased annual dividend payments to ¥270 from ¥240.
As of Q3 2023, 14 of the hedge funds tracked by Insider Monkey owned Sumitomo Mitsui Financial Grp, Inc. shares. Cowen Group’s Ramius was the largest shareholder with ownership of 4.2 million shares valued at $41 million.
Like other stocks such as Eni S.p.A., Mitsubishi UFJ Financial Group, Inc., and Equinor ASA, Sumitomo Mitsui Financial Grp, Inc. is among the 10 large-cap stocks billionaires like the least.
6. Equinor ASA (NYSE:EQNR)
Number of Billionaire Holders: 5
Stavanger, Norway-based Equinor ASA, formerly known as Statoil, is an international energy company engaged in exploration, development and production of oil and gas, as well as wind and solar power. With a history dating back to 1972, the company employs more than 22,000 personnel across 30 countries.
On October 27, Equinor ASA released its financial results for Q3 2023. Its total revenue declined by 40% y-o-y to $26 billion, while net income shrunk 73% y-o-y to $2.5 billion. The company paid a quarterly dividend of $0.90 per share which includes a regular component of $0.30 and an extraordinary component of $0.60 per share.
Equinor ASA is on a significant capital distribution plan and expects to return $17 billion to its shareholders, including a share buy-back program of $6 billion.
On December 7, BofA analyst Mehdi Ennebati raised the rating for Equinor ASA shares to ‘Buy’ from ‘Neutral’ and raised the target price from $34 to $37. The target price represents a potential upside of 20.17% based on the share price on December 8.
5. Toyota Motor Corporation (NYSE:TM)
Number of Billionaire Holders: 4
Founded in 1937 and headquartered in Toyota City, Japan, Toyota Motor Corporation (NYSE:TM) is a global automotive industry leader manufacturing vehicles in 27 countries or regions and marketing the company’s products in over 170 countries and regions.
On October 26, Toyota Motor Corporation released its financial results for six months ended September 30, 2023. Its revenue went up by 24% y-o-y to ¥22 trillion, while its net income surged by 117% y-o-y to ¥2.6 trillion.
As of Q3 2023, 15 hedge funds owned shares of Toyota Motor Corporation, valued at $1.1 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder with ownership of 6.04 million shares valued at $1.1 billion.
Like other stocks such as Eni S.p.A., Mitsubishi UFJ Financial Group, Inc., and Equinor ASA, Toyota Motor Corporation is among the 10 large-cap stocks billionaires like the least.
4. Brookfield Corporation (NYSE:BN)
Number of Billionaire Holders: 4
Founded in 1899, Toronto, Canada-based Brookfield Corporation (NYSE:BN) is an asset management company focused on direct control investments in real estate, renewable power, infrastructure, credit and private equity.
On November 9, Brookfield Corporation released its financial results for the third quarter of 2023. Its revenue went up by 4% y-o-y to $24.4 billion and net income declined by 46% y-o-y to $230 million.
Following the earnings release, BMO Capital analyst Sohrab Movahedi lowered the firm’s price target on Brookfield Corporation shares to $42 from $45 and maintained an ‘Outperform’ rating.
3. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)
Number of Billionaire Holders: 4
Based in Tokyo, Japan, Mitsubishi UFJ Financial Group, Inc. is one of the world’s leading financial groups with a global network with over 2,000 locations in more than 50 markets including the Americas, Europe, the Middle East and Africa, Asia, and Oceania.
On November 14, Mitsubishi UFJ Financial Group, Inc. released its financial results for six months ended September 30, 2023. Its ordinary income went up by 31% y-o-y to ¥5.7 trillion, while it reported a net income of ¥927 billion. It also increased annualized dividend payments to ¥41 from ¥32.
On December 4, Goldman Sachs analyst Makoto Kuroda maintained a ¥1,520 price target for Mitsubishi UFJ Financial Group, Inc. with an unchanged ‘Buy’ rating. The stock is being added to the firm’s new “APAC Conviction List – Directors’ Cut”.
2. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
Number of Billionaire Holders: 3
Founded in 1857, Bilbao, Spain-based, Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is a global financial service group present in more than 25 countries including Spain, Portugal, Mexico, South America, Turkey, Italy, and Romania. It has nearly 71 million active clients and €758 billion in assets.
On October 31, Banco Bilbao Vizcaya Argentaria, S.A. released its financial results for the third quarter of 2023. Its revenues went up by 16% y-o-y to €8.0 billion, while its net income increased by 8% y-o-y to €2.1 billion.
On September 27, the board of directors of Banco Bilbao Vizcaya Argentaria, S.A. declared an interim cash dividend of €0.16 per share which represents a 33% increase compared to the dividend paid last year.
As of Q3 2023, 7 of the 910 hedge funds tracked by Insider Monkey were long Banco Bilbao Vizcaya Argentaria, S.A.. Ken Fisher’s Fisher Asset Management was the largest hedge fund shareholder of the company with ownership of 56 million shares valued at $451 million.
1. Eni S.p.A. (NYSE:E)
Number of Billionaire Holders: 3
Eni S.p.A. is an integrated energy company based in Rome, Italy. It focuses on oil and natural gas exploration, field development and production, as well as the supply, trading and shipping of natural gas, LNG, electricity, and fuels.
On October 27, Eni S.p.A. released its financial results for Q3 2023. Its revenue declined by 40% y-o-y to €22.3 billion while net income shrunk by 67% y-o-y to €1.9 billion. The company made dividend payments of €2.3 billion and repurchased €1.0 billion worth of its common shares, during the first nine months of 2023.
Following the earnings release, RBC Capital analyst Ben Hendrix raised the price target for Eni S.p.A. shares from $300 to $327 and maintained a ‘Sector Perform’ rating for the shares.
As of Q3 2023, Eni S.p.A. shares were held by only 3 of the billionaires tracked by Insider Monkey with a total value of $7.4 million.
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This article is originally published at Insider Monkey.
