4. GlaxoSmithKline plc (NYSE:GSK)
Number of Hedge Fund Holders: 36
Then there’s GlaxoSmithKline plc (NYSE: GSK), a British pharmaceutical company founded in 1715 which offers a range of vaccines, medicines and health-related consumer products around the globe. As of May 4, GlaxoSmithKline plc (NYSE: GSK) has recorded a 19.44% jump in share price in the last 12 months, and an increase of 4.16% in the last 6 months.
On April 29, Barclays analyst Emily Field raised the firm’s price target on GlaxoSmithKline plc (NYSE: GSK) to £1,800 from £1,775 and maintained an ‘Equal Weight’ rating on the company shares.
GlaxoSmithKline plc (NYSE: GSK) in April said it expects a similar level of sales from its COVID-19 solutions in 2022 as in 2021, as a result of known binding agreements with governments. However these sales will be at a lesser profit contribution owing to increased sales of lower margin drug Xevudy.
For the first quarter of 2022, GlaxoSmithKline plc (NYSE: GSK) posted an EPS of $0.83, which beat estimates by $0.06. $12.27 billion in quarterly revenue signaled a jump of 18.6% from the year-ago quarter and also surpassed estimates by roughly $639 million.
Investor confidence in GlaxoSmithKline plc (NYSE: GSK) recorded an uptick at the end of the fourth quarter of 2021, where 36 hedge funds were long on the company shares, as opposed to 31 hedge funds a quarter earlier. Fisher Asset Management held a stake in GlaxoSmithKline plc (NYSE: GSK) exceeding $803 million in Q4 2021, making it the top shareholder of the firm.
3. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 41
With a market cap of more than $207 billion, Shell plc (NYSE:SHEL) is one of the largest energy firms in the world. As the globe gradually shifts towards green energy, Shell is well-positioned to continue its dominance in the market given its sizeable investments towards green initiatives. As of May 4, Shell plc (NYSE:SHEL) has recorded a 44.17% jump in share price in the last 12 months, and 24.09% in the last 6 months.
On April 19, JPMorgan analyst Christyan Malek maintained an ‘Overweight’ rating on Shell plc (NYSE:SHEL) shares and raised the firm’s price target to £2,850 from £2,700.
For the fourth quarter of 2021, Shell plc (NYSE:SHEL) posted revenue of $85.28 billion, which beat estimates by $26.62 billion and registered an increase of 93.87% year-on-year. EPS stood at $1.66, also exceeding analysts’ forecasts by $0.41.
Out of all the hedge funds tracked by Insider Monkey, 41 reported bullish bets on Shell plc (NYSE:SHEL) in Q4 2021 with aggregate stakes worth $2.63 billion. This shows a positive trend from the quarter before where 33 hedge funds held $2.05 billion worth of positions in the energy firm.
Goehring & Rozencwajg Associates, an investment firm, talked about many stocks in its Q3 2021 investor letter, and Shell plc (NYSE:SHEL) was one of them. Here is what the fund said:
“Royal Dutch Shell’s ESG challenges continue unabated. A Dutch court ruled in May that Shell plc (NYSE:SHEL) must cut its CO2 output by 45% by 2030 to align their policies with the Paris Climate Accord. In a statement issued after the verdict, a Shell plc (NYSE:SHEL) spokesperson acknowledged that “urgent action is needed on climate change and the company is accelerating efforts to reduce emissions.” If the pressure from the Dutch court system was not enough, an activist shareholder has proposed breaking the company apart to address ESG concerns. On October 27th, Third Point Management announced the following.
“If Shell plc (NYSE:SHEL) pursues this type of strategy it would probably lead to an acceleration of carbon dioxide reduction. […] Breaking Shell into two operating units would create a standalone legacy energy business (upstream, refining, and chemicals) that could slow capex beyond what is has already promised, sell assets, and prioritize return of cash to shareholder which can be reallocated into low-carbon areas of the market.”
