In this article, we’re going to take a look at the five biggest stocks targeted by activist investors right now. To see more stocks picks, you can head over the 10 biggest stocks targeted by activist investors right now.
5. Norfolk Southern Corp (NYSE:NSC)
Market Cap: $58.63 billion
Norfolk Southern Corp (NYSE:NSC), which has a market cap of $58.63 billion, is one of the largest railway companies in the US. One of the company’s shareholders is Ancora Advisors, led by Frederick DiSanto, which holds 357,197 shares of the company, as of the end of 2023. However, Ancora has also been engaged in a rather fierce proxy fight with Norfolk Southern Corp. The investor has been pushing for the removal of CEO, as well as the rest of the management team and the board of directors. Ancora has reaffirmed its position in a recent statement issued following a derailment in Lower Saucon Township. However, Norfolk Southern Corp (NYSE:NSC) has been fighting back, saying that the CEO has the full support of the current board and that the company has been more focused on safety.
During the fourth quarter, Norfolk Southern Corp (NYSE:NSC) saw the number of bullish investors among those tracked by Insider Monkey increase to 50 from 44. These funds include Ken Fisher’s Fisher Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Israel Englander’s Millennium Management.
4. BP plc (NYSE:BP)
Market Cap: $102.72 billion
When it comes to oil & gas companies, we often see ESG-focused investors pushing for production cuts and more focus on environment. However, sometimes activists can target energy companies for what we might believe to be the wrong reasons. London-based hedge fund Bluebell has recently acquired a stake in BP plc (NYSE:BP). According to reports, Bluebell has been pushing the energy company to increase production of oil & gas and cut its commitments towards clean energy. The investor believes that BP plc (NYSE:BP)’s plans to cut production by 25% by 2030 harms shareholder value.
At the end of 2023, there were 40 funds in our database bullish on BP plc (NYSE:BP), including Fisher Asset Management and Two Sigma Advisors, which hold 841,211 shares and 761,900 shares, respectively.
3. Walt Disney Co (NYSE:DIS)
Market Cap: $202.36 billion
Among energy companies that make up our list of 5 biggest stocks targeted by activists investors right now, Walt Disney Co (NYSE:DIS) looks like an outlier, although the market cap of $202.36 billion suggests otherwise. Walt Disney Co (NYSE:DIS) is currently engaged in a fierce proxy battle with activist investor Nelson Peltz, which reportedly has been going on for years. Nelson Peltz’s Trian Partners holds a $2.9 billion stake in Walt Disney Co (NYSE:DIS) and the investor has been attempting to obtain a board seat for years, according to reports. Both parties have been going at each other with statements and videos full of criticisms and asking for shareholders’ support at the upcoming annual meeting.
Earlier in March, Nelson Peltz published a white paper outlining his view on Walt Disney Co (NYSE:DIS)’s course of action. Among other things, the investor believes that Disney should be making fewer sequels, allocate funds towards less-expensive content that would balance out the higher-cost franchises. Peltz also believes the company should “issue long-term free cash flow growth target beyond FY 2024 to anchor investors on a clear strategic vision and enhance accountability.”
Walt Disney Co (NYSE:DIS) saw 89 funds in our database holding shares as of the end of December, unchanged over the quarter.
2. Shell PLC (NYSE:SHEL)
Market Cap: 204.04 billion
Then there’s Shell PLC (NYSE:SHEL), which saw 46 funds in our database holding shares as of the end of the year. Recently, a coalition of investors, which collectively own roughly 5% of the company, have been pushing for a closer alignment towards emissions reduction targets. The campaign started when Dutch shareholder activist Follow This issued a resolution that is currently backed by more than 25 investors, including one of the largest pension funds in the UK, National Employment Savings Trust. Shareholders are expected to cast their votes on the resolution in May.
Among the funds in our database, the top shareholder of Shell PLC (NYSE:SHEL) is Ken Fisher’s Fisher Asset Management, which owns 22.82 million shares as of the end of 2023.
1. Exxon Mobil Corp (NYSE:XOM)
Market Cap: $430.03 billion
Last but not least, our list of biggest stocks targeted by activists investors right now is led by Exxon Mobil Corp (NYSE:XOM), in which there were 85 funds holding shares as of the end of December, versus 79 funds a quarter earlier.
Similar to Shell PLC (NYSE:SHEL), Exxon Mobil Corp (NYSE:XOM) got in the cross-hairs of activist investor Follow This, which urged to company to increase the rate of emissions cuts. Instead of allowing the vote on the resolution to proceed, Exxon Mobil Corp (NYSE:XOM) filed a lawsuit to block the resolution from being voted on at the upcoming annual meeting. Even though Follow This and its US backer Arjuna Capital have recently withdrawn the resolution, Exxon Mobil Corp (NYSE:XOM) is proceeding with the lawsuit. This might be concerning, as it could potentially inspire other companies to block resolutions in court.
