5 Best Stock Picks of Mason Hawkins’ Southeastern Asset Management

3. CNX Resources Corporation (NYSE:CNX)

Southeastern Asset Management’s Stake Value: $377,605,000

Percentage of Southeastern Asset Management’s 13F Portfolio: 6.33%

Number of Hedge Fund Holders: 36

CNX Resources Corporation (NYSE:CNX) is an independent natural gas and midstream company operating in the Appalachian Basin. The company was founded in 1860 and is headquartered in Canonsburg, Pennsylvania. Mason Hawkins’ hedge fund owned 27.4 million shares of CNX Resources Corporation (NYSE:CNX) in Q4 2021, worth $377.60 million, representing 6.33% of the total holdings. 

On April 28, Stifel analyst Jane Trotsenko raised the price target on CNX Resources Corporation (NYSE:CNX) to $33 from $29 and reiterated a Buy rating on the shares after the quarterly results, which the analyst perceives as positive. Margins continued to expand while inflation was modest, the analyst noted. Management remains committed to returning capital to shareholders via share buybacks, the analyst added.

According to Insider Monkey’s Q4 data, 36 hedge funds were long CNX Resources Corporation (NYSE:CNX), compared to 34 funds in the last quarter. D E Shaw is a notable shareholder of the company, with more than 5 million shares worth $70.6 million. 

Here is what Longleaf Partners Small-Cap Fund Commentary has to say about CNX Resources Corporation (NYSE:CNX) in its Q4 2021 investor letter:

“CNX Resources (27%, 2.14%; 9%, 0.46%), the Appalachian natural gas producer, was another top contributor. With higher strip gas prices, another strong year of FCF and a 13% annualized repurchase pace last quarter, our appraisal of the value increased over 20%. However, the company’s conservative hedging program that has helped it withstand prior bear markets also held back earnings growth this year. The board, led by chairman Will Thorndike, recently authorized another $1 billion of repurchase, representing nearly one third of outstanding shares at today’s price. Despite higher absolute FCF than Appalachian comps with inferior inventory positions, CNX trades at less than half of their enterprise values.”