In this article, we will discuss the 10 latest stock picks of billionaire Steve Cohen.
Steven A. Cohen is an American billionaire hedge fund manager and also the majority owner of Major League Baseball’s New York Mets. According to Forbes, as of March 2022, Mr. Cohen’s net worth stands at $15.9 billion. In addition, he ranked 48th on the 2021 Forbes 400 list. As of the fourth quarter of 2021, Cohen manages over $25.04 billion in 13F securities through his hedge fund, Point72 Asset Management.
Mr. Cohen’s Life Before Point72 Asset Management
Mr. Cohen went to the Wharton School at the University of Pennsylvania where he was an economics major. During this time, he opened a brokerage account with $1,000. In 1978, he graduated with a bachelor’s degree in Economics. Upon graduating, Mr. Cohen landed a job as a junior trader at Gruntal & Co., where he made a profit of $8,000 on his very first day. By 1984, he was managing a $75 million portfolio, had six traders working under him, and was making his employer a profit in excess of $100,000 per day. Mr. Cohen was suspected of insider trading in the late 1980s after he put a bet on the merger between General Electric and RCA before it was announced.
S.A.C. Capital Advisors
In 1992, Steve Cohen founded his own hedge fund, S.A.C. Capital Advisors with $20 million. His initial strategy was centered around high-frequency and rapid-fire trading. In 2003, the New York Times reported that “S.A.C. is one of the biggest hedge funds and is known for frequent and rapid trading”. Mr. Cohen has shown to be an intelligent and versatile investor. After profiting from his initial high-frequency trading strategies, he changed the pace at which he was trading and started trading long-short and fixed-income stocks.
Point72 Asset Management
In 2014, Mr. Cohen founded Point72 Asset Management as a venture capital fund initially. The fund opened itself to outside money in 2018. Point72 Asset Management has had its fair share of ups and downs. The fund reported a 16% gain in 2020, which marked its best-performing year. The fund lost money during the GameStop short squeeze in 2021, reporting losses of between 10% and 15%. Despite the downturn, Point72 Asset Management has continued to expand its assets and portfolio. The fund’s 13F portfolio for the fourth quarter of 2021 was valued at $25.04 billion, up from $22.7 billion in the third quarter of 2021.
Along with significantly upping his stakes in Amazon.com, Inc. (NASDAQ:AMZN) and many other stocks, Mr. Cohen also purchased several notable new securities as well. Among his top buys for the fourth quarter of 2021 were Micron Technology, Inc.(NASDAQ:MU), The Coca-Cola Company (NYSE:KO), and Atlassian Corporation Plc (NASDAQ:TEAM).
Our Methodology
For our list of the 10 latest stock picks of billionaire Steve Cohen, we went through Point72 Asset Management’s 13F portfolio holdings as of December 31, 2021, according to the fund’s latest 13F filing with the SEC. We ordered our selection by value and included new stocks that were not a part of the fund’s portfolio at the end of Q3. We also included the overall hedge fund sentiment and analyst ratings for each stock.
Without further ado, let’s look at the 10 latest stock picks of billionaire Steve Cohen.
10 Latest Stock Picks of Billionaire Steve Cohen
10. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
Stake Value of Point72 Asset Management: $70,388,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 46
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is an American targeted oncology company that focuses on the development of cancer therapeutics. The stock is one of the latest additions to Point72 Asset Management’s 13F portfolio. As of the fourth quarter of 2021, the fund’s stake in the company is valued at $70.38 million. The investment covers 0.28% of Point72 Asset Management’s 13F portfolio.
This February, BofA analyst Jason Gerberry upgraded Mirati Therapeutics, Inc. (NASDAQ:MRTX) to ‘Neutral’ from ‘Underperform’ and gave the stock a $141 price target.
By the end of the fourth quarter of 2021, 46 hedge funds held positions in Mirati Therapeutics, Inc. (NASDAQ:MRTX), with the total stakes of these funds standing at $2.61 billion.
Like Micron Technology, Inc.(NASDAQ:MU), The Coca-Cola Company (NYSE:KO), and Atlassian Corporation Plc (NASDAQ:TEAM), Mirati Therapeutics, Inc. (NASDAQ:MRTX) is one of the positions initiated by Point72 Asset Management in the fourth quarter of 2021.
Here is what Baron Funds had to say about Mirati Therapeutics, Inc. (NASDAQ:MRTX) in its third-quarter 2021 investor letter:
“We initiated a position in Mirati Therapeutics, Inc., a clinical-stage biotechnology company developing novel therapeutics targeting the genetic and immunologic drivers of cancer. The company’s lead drug, known as Adagrasib, targets a protein called KRAS that is a central node in driving tumor growth. We think Adagrasib has a best-in-class profile in a multibillion-dollar drug category. Currently, Amgen has a competing drug on the market, but clinical data on Adagrasib presented at the recent European Society of Medical Oncology meeting gives us confidence that Mirati’s drug has better attributes including residence time on target, efficacy response rates, longer duration of treatment, combinability opportunities, and blood brain barrier penetration.”
9. Phillips 66 (NYSE:PSX)
Stake Value of Point72 Asset Management: $84,311,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 41
This January, Phillips 66 (NYSE:PSX) announced its earnings for the fiscal fourth quarter of 2021, in which the company beat on both EPS (by $1.01) and revenue estimates. The company reported earnings per share of $2.94 and grew its revenue by 100.19% year-over-year to $33.57 billion, beating estimates by $6.17 billion. Phillips 66 (NYSE:PSX) shares have gained 22.05% over the past six months.
On February 1, 2022, RBC Capital analyst Elvira Scotto raised her price target on Phillips 66 (NYSE:PSX) to $101 from $97 and maintained an ‘Outperform’ rating on the shares, in light of the company’s strong performance in Q4 2021.
Insider Monkey spotted Phillips 66 (NYSE:PSX) in 41 hedge fund portfolios at the end of the fourth quarter of 2021. The total value of the PSX stakes held by these funds was $927.41 million. Those figures are up from 34 long positions in the prior quarter, with total stakes valued at $409.38 million. Clearly, hedge funds like what they’re seeing from Phillips 66 right now, and believe in the refiner’s potential to have a big 2022 as oil prices rise.
8. Cisco Systems, Inc. (NASDAQ:CSCO)
Stake Value of Point72 Asset Management: $86,380,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 57
Point72 Asset Management added Cisco Systems, Inc. (NASDAQ:CSCO) to its 13F portfolio in the fourth quarter of 2021. The fund’s stake in the company was valued at $86.38 million on December 31, which accounted for 0.34% of the value of its Q4 investment portfolio. There were 56 other hedge funds among those tracked by Insider Monkey, that held stakes in Cisco Systems, Inc. (NASDAQ:CSCO) at the end of Q4. All told, those 57 funds held close to $3.42 billion in CSCO shares.
This February, Cisco Systems, Inc. (NASDAQ:CSCO) reported its revenue and earnings per share for Q4 2021, for which the company beat estimates on both counts. Cisco’s revenue for the quarter came in at $12.72 billion, beating estimates by $51.05 million. Cisco Systems, Inc. (NASDAQ:CSCO) also reported earnings per share of $0.84, beating estimates by $0.03.
On February 16, 2022, the company also announced that its board of directors declared a quarterly cash dividend of $0.38 per share, up 2.7% from the prior dividend of $0.37. The stock’s forward dividend yield at the time was 2.8%, and the dividend was payable on April 27, 2022, to shareholders of record on April 6, 2022.
On February 17, 2022, Cowen analyst Paul Silverstein raised his price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $66 from $61 and reiterated an ‘Outperform’ rating on the shares.
ClearBridge Investments, an investment management firm, recently published its third quarter 2021 investor letter in which it mentioned Cisco Systems, Inc. (NASDAQ:CSCO). Here’s what the experts at ClearBridge had to say:
“We reinvested a portion of the proceeds into existing holding Cisco Systems, which also has highly valuable technology and an improving secular growth story with its leading position in core networking hardware, as well as in its growing software and services business. Cisco has refocused on winning share in the large and growing hyperscale market and has been investing aggressively in R&D to support growth. We believe Cisco has found new legs after previously ceding some growth opportunities in cloud while maintaining its strong presence in the carrier and enterprise markets. Cisco boasts a strong balance sheet and accelerating multiyear growth while trading at a modest multiple of earnings.”
7. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Stake Value of Point72 Asset Management: $87,174,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 42
Hedge funds are also growing more bullish on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), which was a part of 42 funds’ portfolios at the end of Q4 2021, including Cohen’s new position. The total value of those stakes stood in excess of $1 billion, up from the $850.17 million in shares that were owned by 37 hedge funds a quarter prior. Cohen’s new stake, valued at approximately $87.17 million, represents 0.34% of Point72 Asset Management’s Q4 2021 13F portfolio value.
On January 6, 2022, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) released its earnings results for the fiscal first quarter of 2022 ended November 30. The company’s EPS of $1.68 beat estimates by $0.34, while its revenue of $33.9 billion also beat estimates by $946.75 million.
Mizuho analyst Ann Hynes raised her price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $56 from $51 in January, while maintaining a ‘Neutral’ rating on the shares.
Miller Howard Investments, an investment management firm, shared its thoughts on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter. Here’s what the firm had to say:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
6. Cigna Corporation (NYSE:CI)
Stake Value of Point72 Asset Management: $96,383,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.38%
Number of Hedge Fund Holders: 53
Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States. In February, the company announced its plans for capital deployment to enhance shareholder value as well as expand its share repurchase program. The company expects to generate over $12 billion of deployable capital in 2022.
Cigna’s board of directors approved a total increase of $6 billion in incremental share repurchase authorization, upping the total share repurchase authority to $10 billion. The company expects to deploy more than $7 billion for share repurchase in 2022. Moreover, Cigna Corporation (NYSE:CI) declared a quarterly cash dividend of $1.12 per share, up 12% from the prior dividend of $1.00.
On March 2, 2022, Mizuho analyst Ann Hynes raised her price target on Cigna Corporation (NYSE:CI) to $266 from $245 and maintained a ‘Buy’ rating on the shares.
At the end of the fourth quarter of 2021, 53 hedge funds held stakes in Cigna Corporation (NYSE:CI) worth $1.92 billion. One of those 53 stakes was Point72 Asset Management’s new position, which was valued at $96.38 million. The investment accounts for 0.38% of the value of Point72’s 13F portfolio as of December 31.
Dodge & Cox Stock Fund mentioned Cigna Corporation (NYSE:CI) in its third-quarter 2021 investor letter. Here’s what the firm had to say:
“Cigna (2.5% position) is one of the largest and most diversified health care services organizations in the United States. The stock has underperformed recently due to weak financial results, which included higher than expected medical costs. Nevertheless, the company continues to work towards its 10-13% annual earnings growth target, generates significant cash flow, and has plans to deploy capital to shareholders through debt repayments, share buybacks, and a newly announced dividend program. Cigna trades at an attractive valuation of nine times forward earnings.”
In the second half of this article we’ll look at Cohen’s purchases of Micron Technology, Inc.(NASDAQ:MU), The Coca-Cola Company (NYSE:KO), and Atlassian Corporation Plc (NASDAQ:TEAM), among other compelling stocks.
5 Latest Stock Picks of Billionaire Steve Cohen
5. Lam Research Corporation (NASDAQ:LRCX)
Stake Value of Point72 Asset Management: $108,664,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 62
Lam Research Corporation (NASDAQ:LRCX) is a semiconductor company that designs, manufactures, markets, refurbishes, and services semiconductor processing equipment. In January, the company reported earnings per share of $8.53 for the fiscal second quarter of 2022, beating estimates by $0.02. In addition, Lam Research Corporation (NASDAQ:LRCX) generated quarterly revenue of $4.23 billion, up 22.29% year-over-year.
On February 10, 2022, Lam Research Corporation (NASDAQ:LRCX) announced that its board of directors had declared a quarterly cash dividend of $1.50 per share. The dividend is payable on April 6, 2022, to shareholders of record on March 16, 2022. The stock has a 5-year dividend growth rate of 32.91% and has announced dividend increases for seven consecutive years as of 2022.
This stock is one of the latest additions to Point72 Asset Managements investment portfolio, being added in Q4, and accounts for 0.43% of the value of the fund’s 13F holdings. Cohen was far from the only fund bullish on Lam Research Corporation (NASDAQ:LRCX) in Q4, as it was held by 62 hedge funds at the end of the quarter, with those positions valued at $5.02 billion. Those figures were up significantly, from 47 funds with $3.51 billion in LRCX shares a quarter earlier.
Vulcan Value Partners, an investment management firm, recently published its third quarter 2021 investor letter in which the firm mentioned Lam Research Corporation (NASDAQ:LRCX). Here’s what it had to say:
“Lam Research Corp. designs and manufactures equipment used in the fabrication of semiconductors. We would not invest in all companies in the semiconductor industry as many companies have more commoditized products. However, some of the semiconductor capital equipment companies are an exception. We purchased a competitor, Applied Materials, in the second quarter and purchased Lam Research this quarter. Consolidation within the industry has improved the company’s competitive position and key shifts in the industry are driving demand for more complex capital equipment. Among these shifts are an acceleration in the digital transformation of the global economy, the slowing of Moore’s law, and increased application of artificial intelligence (AI). The company generates robust free cash flow and has experienced strong and improving margins. We are delighted to have the opportunity to purchase Lam Research with a substantial margin of safety.”
4. Applied Materials, Inc. (NASDAQ:AMAT)
Stake Value of Point72 Asset Management: $116,304,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.46%
Number of Hedge Fund Holders: 78
Applied Materials, Inc. (NASDAQ:AMAT) is another semiconductor stock that caught the attention of Point72 Asset Management in the fourth quarter of 2021. The fund’s stake in the company as of December 31 is valued at $116.3 million, which makes up 0.46% of the fund’s $25.04 billion investment portfolio.
This February, UBS analyst Timothy Arcuri raised his price target on Applied Materials, Inc. (NASDAQ:AMAT) to $160 from $150 while maintaining a ‘Neutral’ rating on the shares.
Applied Materials, Inc. (NASDAQ:AMAT) released its earnings data for the fiscal first quarter of 2022 on February 16, 2022. The company reported earnings per share of $1.89, beating EPS estimates by $0.04. Revenue for the quarter was approximately $6.27 billion, up 21.48% year-over-year and beating estimates by $110.91 million. Moreover, the stock has gained 10.83% over the past year.
Applied Materials, Inc. (NASDAQ:AMAT) was found to be in 78 hedge funds’ portfolios by the close of Q4 2021. The total value of the stakes held by these funds was $5.43 billion, up from $4.32 billion at the close of Q3 2021, when 68 hedge funds were long AMAT.
LRT Capital Management shared its insights on Applied Materials, Inc. (NASDAQ:AMAT) in its third quarter 2021 investor letter. Here’s what the firm had to say:
“Compare Rivian to Applied Materials (AMAT), a semiconductor equipment supply company that specializes in the “frontend” (primarily patterning) of the semiconductor manufacturing process. The company makes products that are critical to making modern computer chips. It has a market cap of approximately $145 billion dollars. It, also, generated $0 from selling EVs over its lifetime. However, Applied Materials generated $21 billion in revenue and $5.1 billion in net income over the past twelve months alone in its semiconductor equipment business. Since a company that sells no EVs is worth $150 billion, then Applied Materials semiconductor business is being valued at a negative $5 billion dollars…” (Click here to see the full text)
3. Atlassian Corporation Plc (NASDAQ:TEAM)
Stake Value of Point72 Asset Management: $124,140,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.49%
Number of Hedge Fund Holders: 69
This January, Atlassian Corporation Plc (NASDAQ:TEAM) announced its earnings for the fiscal second quarter of 2022, in which the company beat estimates on both EPS and revenue. Atlassian reported EPS of $0.50 for the quarter, beating estimates by $0.11, while its revenue of $688.53 million represented a 37.33% year-over-year increase and beat estimates by $46.05 million. Atlassian Corporation Plc (NASDAQ:TEAM) shares have gained 17.26% over the past 12 months.
On February 9, 2022, Atlassian Corporation (NASDAQ:TEAM) announced its plans to redomicile its parent holding company from the United Kingdom to the United States. The company believes that this move could help the expansion of its investor base, support inclusion in additional stock indices, streamline its corporate structure, and provide more flexibility in accessing capital, with little to no operational changes.
Morgan Stanley analyst Keith Weiss believes that redomiciling could also prove to be beneficial for Atlassian Corporation (NASDAQ:TEAM) from a tax perspective. As of February 10, 2022, the analyst has an ‘Overweight’ rating on the stock and a $505 price target.
Out of the 924 hedge funds tracked by Insider Monkey that filed 13F for the December 31 reporting period, 69 held stakes in Atlassian Corporation (NASDAQ:TEAM) which amounted to roughly $5.78 billion. Point72 Asset Management was one of those funds, having just added the stock to its 13F portfolio. The fund’s stake in the company was valued at $124.14 million, an investment accounting for 0.49% of its portfolio’s value.
Artisan Partners, a high value-added investment management firm, recently published its fourth quarter 2021 investor letter in which it mentioned Atlassian Corporation (NASDAQ:TEAM). Here’s what the experts at Artisan had to say about the stock:
“Atlassian was among our top performers and contributors in 2021. The company is adding new customers at >2X its pre-pandemic pace and is experiencing strong subscription growth as customers migrate to the cloud. We remain confident in the fundamental outlook as companies of all sizes adopt its tools and as new enterprise-wide product offerings are rolled out. However, we reduced our position size as the stock approached our PMV estimate. The stock remains a high conviction holding, especially after its selloff later in the quarter.”
2. The Coca-Cola Company (NYSE:KO)
Stake Value of Point72 Asset Management: $167,161,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.66%
Number of Hedge Fund Holders: 70
The Coca-Cola Company (NYSE:KO) has been dubbed a dividend king for years now. As of March 5, 2022, the stock has a forward yield of 2.81%, a 5-year dividend growth rate of 3.71%, and boasts over 59 years of consistent dividend increases. On February 17, 2022, The Coca-Cola Company (NYSE:KO) announced that its board of directors had declared a quarterly cash dividend of $0.44 per share, up 4.8% from the prior dividend of $0.42 per share.
In February, The Coca-Cola Company (NYSE:KO) released its earnings for the fiscal fourth quarter of 2022, for which the company beat EPS by $0.04 and beat revenue estimates by $579.32 million. During the quarter, Coca-Cola pulled in earnings per share of $0.45 and generated revenue of $9.47 billion.
On February 15, 2022, Evercore ISI analyst Robert Ottenstein raised his price target on The Coca-Cola Company (NYSE:KO) to $70 from $63 and maintained an ‘Outperform’ rating on the shares.
By the close of the fourth quarter of 2021, 70 hedge funds held stakes worth approximately $28.61 billion in The Coca-Cola Company (NYSE:KO). This is compared to 61 hedge funds at the end of the third quarter, which held stakes amounting to $25.13 billion. Needless to say, more hedge funds began looking at Coca-Cola as a safe investment for their dollars heading into a 2022 that promised to be turbulent (and has been).
1. Micron Technology, Inc. (NASDAQ:MU)
Stake Value of Point72 Asset Management: $206,353,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.82%
Number of Hedge Fund Holders: 83
Micron Technology, Inc. (NASDAQ:MU) designs, manufactures, and sells, memory and storage products worldwide. Last December, the company announced its financial results for the fiscal first quarter of 2022, reporting earnings per share of $2.16, beating estimates by $0.05. Micron Technology, Inc. (NASDAQ:MU) generated revenue amounting to $7.69 billion for the quarter, up 33.15% year-over-year, and beating estimates by $10 million.
This February, Wedbush analyst Matt Bryson upgraded Micron Technology, Inc. (NASDAQ:MU) to ‘Outperform’ from ‘Neutral’ and raised his price target to $120, up from $100. The stock has gained 11.23% over the past six months.
Insider Monkey spotted Micron Technology, Inc. (NASDAQ:MU) in 83 hedge funds’ portfolios by the end of the fourth quarter of 2021, one of which was Point72 Asset Management. The total stakes held by these hedge funds was in excess of $5.51 billion, up from just 63 positions in the prior quarter with stakes valued at just $3.84 billion.
Here’s what Hazelton Capital Partners had to say about Micron Technology, Inc. (NASDAQ:MU) in its third quarter 2021 investor letter:
“It’s hard to explain how shares of Micron Technology, manufacture of DRAM and NAND semiconductor chips, can fall during a global chip shortage. In most industries, focusing on demand can give you a clear insight into what lays ahead for a company. Today, the memory and storage chip industry is no different. However, in the past, companies focused on market share led to the reckless build out of chip fabrication plants (FABs), oversupply, falling average selling prices (ASPs) of memory and storage chips, lower margins, and declining cash flows. As the industry consolidated – there are now just 3 major producers of DRAM and 5 on the NAND side – rational behavior among the key players began to take hold as competitors began focusing more on R&D. Currently, chip pricing remains cyclical although less so than in the past and that cyclicality has a long-term upward bias. The ongoing transition to newer and more robust platforms (3D 176-layer NAND & 1-Alpha node DRAM) has provided the memory and storage chip industry with improved supply capacity under its current manufacturing footprint, ultimately pressuring ASPs. Over the past three years, as most of the large platform conversions have already taken place, being able to add more bits per wafer has reached a saturation point. With no major FAB build outs planned in the near-term by competitors Samsung or SK Hynix, constrained supply and flattening cost curves should lead to durable and upward sloping ASPs once the recent volatility from the chip shortage subsides.
Currently Micron Technology trades at just 8x 2022 estimate earnings. MU is expecting growth in both DRAM and NAND not just from the supply of more chips to data centers, artificial intelligence, the auto sector, and mobile devices, but also from greater demand for gigabyte capacity per unit within those segments. With a healthy balance sheet, improving return on invested capital, and expanding cash flows, not only should Micron benefit from improving future earnings but its multiple should also reflect the transition to a flattening cost curve.”
You can also take a look at 10 Best High-Yield Dividend Stocks to Buy According to Stanley Druckenmiller and 10 Best Stocks to Buy According to Billionaire Carl Icahn.
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Disclosure: None. 10 Latest Stock Picks of Billionaire Steve Cohen is originally published on Insider Monkey.
