In this article, we discuss 5 favorite stocks of Mario Gabelli. If you want to see more of the top holdings in the billionaire’s portfolio, click 10 Favorite Stocks of Mario Gabelli.
5. GATX Corporation (NYSE:GATX)
GAMCO Investors’ Stake Value: $175,707,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.50%
Number of Hedge Fund Holders: 14
GATX Corporation (NYSE:GATX) was established in 1898 and is headquartered in Chicago, Illinois. The company leases freight railcars and locomotives to the petroleum, chemical, agriculture, and transportation industries. In the fourth quarter of 2021, Mario Gabelli’s GAMCO Investors owned 1.6 million shares of GATX Corporation (NYSE:GATX), worth $175.70 million, representing 1.50% of the total 13F securities.
Financial results for the quarter ending March 2022 were published on April 20. GATX Corporation (NYSE:GATX) reported earnings per share of $2.34, beating analysts’ consensus estimates by $0.95. The $316.60 million revenue missed Street predictions by $6.15 million.
GATX Corporation (NYSE:GATX) declared on April 22 a $0.52 per share quarterly dividend, in line with previous. The dividend is payable on June 30, to shareholders of record on June 15. Sidoti analyst Marla Backer upgraded GATX Corporation (NYSE:GATX) to Buy from Neutral with a $130 price target on February 2.
According to Insider Monkey’s Q4 data, 14 hedge funds were long GATX Corporation (NYSE:GATX), up from 12 funds in the prior quarter. The total stakes held by elite funds in the fourth quarter of 2021 amounted to $215 million. Israel Englander’s Millennium Management is a prominent shareholder of the company, with 179,109 shares worth $18.6 million.
4. Mueller Industries, Inc. (NYSE:MLI)
GAMCO Investors’ Stake Value: $184,030,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.57%
Number of Hedge Fund Holders: 18
Headquartered in Collierville, Tennessee, Mueller Industries, Inc. (NYSE:MLI) sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, South Korea, the Middle East, China, and Mexico. As of Q4 2021, Mario Gabelli’s fund reported owning a $184 million stake in Mueller Industries, Inc. (NYSE:MLI).
On February 18, Mueller Industries, Inc. (NYSE:MLI) declared a $0.25 per share quarterly dividend, a 92.3% increase from its prior dividend of $0.13. The dividend was paid on April 1, to shareholders of record on March 18.
Mueller Industries, Inc. (NYSE:MLI) reported on April 19 Q1 GAAP earnings per share of $2.78. Revenue for the period grew 23.5% year-over-year to $1.01 billion. This is comparable to an EPS of $1.11 and a revenue of $818.1 million in Q1 2021.
Chuck Royce’s Royce & Associates is a significant shareholder of Mueller Industries, Inc. (NYSE:MLI) as of Q4 2021, with 647,002 shares worth $38.4 million. Overall, 18 hedge funds were bullish on the stock at the end of December 2021, up from 22 funds in the previous quarter.
3. CNH Industrial N.V. (NYSE:CNHI)
GAMCO Investors’ Stake Value: $192,689,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.64%
Number of Hedge Fund Holders: 35
Another notable stock in Mario Gabelli’s Q4 portfolio is CNH Industrial N.V. (NYSE:CNHI), an American manufacturer of agricultural, transportation, and construction equipment. The billionaire owns approximately 10 million shares of CNH Industrial N.V. (NYSE:CNHI) as per the 13F filings from Q4 2021, worth $192.6 million, representing 1.64% of his total 13F portfolio.
Deutsche Bank analyst Nicole DeBlase on April 14 maintained a Buy rating on CNH Industrial N.V. (NYSE:CNHI) and lowered the firm’s price target on the shares to $20 from $21. For the Q1 results in the multi-industry and machinery sector, the analyst believes estimates are achievable since most companies laid out conservative outlooks.
According to Insider Monkey’s fourth quarter database, 35 hedge funds were bullish on CNH Industrial N.V. (NYSE:CNHI), up from 25 funds in the earlier quarter. Harris Associates is the largest shareholder of the company, with almost 98 million shares worth $1.90 billion.
Here is what Longleaf Partners Fund has to say about CNH Industrial N.V. (NYSE:CNHI) in its Q4 2021 investor letter:
“CNH Industrial (55%, 2.51%; 16%, 0.65%), a leading farm equipment and commercial vehicle manufacturer globally, was another top performer for the year. CNH reported strong results throughout the year, beating our initial conservative expectations. The US agricultural cycle has been firmly in the company’s favor, driven by commodity price strength, healthy farm balance sheets, advanced technology adoption, and aging fleets feeding replacement demand. We believe we are past the mid-cycle but expect the strong upcycle to continue with the solid order books and strong visibility. On December 31, 2021, CNHI completed the demerger of its on-highway business, which includes its IVECO commercial vehicles and FPT powertrain businesses. This transaction creates a pure play off-highway company comprising the higher-multiple agricultural, construction and specialty vehicle businesses. We expect a narrowing of the discount to the net asset value once we have two focused companies valued at peer multiples.”
2. Sony Group Corporation (NYSE:SONY)
GAMCO Investors’ Stake Value: $233,463,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.99%
Number of Hedge Fund Holders: 28
Sony Group Corporation (NYSE:SONY) was incorporated in 1946 and is headquartered in Tokyo, Japan. It is a multinational conglomerate that specializes in computer hardware, consumer electronics, films and TV shows, robots, semiconductors, telecommunications equipment, and video games. Securities filings for Q4 2021 disclosed that Mario Gabelli owns 1.8 million Sony Group Corporation (NYSE:SONY) shares, worth $233.4 million, representing 1.99% of the total 13F securities.
On April 13, CLSA analyst Amit Garg downgraded Sony Group Corporation (NYSE:SONY) to Outperform from Buy with a price target of 13,000 yen, down from 18,600 yen. According to the analyst, global peer multiples have declined sharply and Sony Group Corporation (NYSE:SONY)’s earnings growth is forecasted to slow drastically from fiscal 2023. Further, the cash flow will probably be spent in games to counter competition, which yields low returns, added the analyst.
Among the hedge funds tracked by Insider Monkey, 28 funds were long Sony Group Corporation (NYSE:SONY) at the end of December 2021, collectively owning stakes worth $610 million. Brandon Haley’s Holocene Advisors is a prominent position holder in the company, with 904,051 shares valued at $114.2 million.
Here is what Cooper Investors has to say about Sony Group Corporation (NYSE:SONY) in its Q4 2021 investor letter:
“In recent years we have observed a growing market for music rights which represent another way for owners of record labels and music libraries like portfolio holdings Warner Music Group and Sony (via its subsidiary Sony Music, ~25% of our estimated enterprise value) to deploy capital, grow their businesses and create value for shareholders.
In the first few days of 2022 Warner closed a deal to acquire David Bowie’s back catalog for about US$250m which follows on from Bruce Springsteen’s catalog sale to Sony for upwards of US$500m and Bob Dylan’s sale to Universal Music for a similar amount.
The trend in demand for music copyrights is clearly strengthening, with competition for these assets coming from traditional music companies (Warner, Sony) as well as specialist investors and private equity…” (Click here to see the full text)
1. Herc Holdings Inc. (NYSE:HRI)
GAMCO Investors’ Stake Value: $316,232,000
Percentage of GAMCO Investors’ 13F Portfolio: 2.7%
Number of Hedge Fund Holders: 27
Herc Holdings Inc. (NYSE:HRI) is the largest holding in Mario Gabelli’s Q4 portfolio, with his hedge fund owning more than 2 million shares of the company, worth $316.2 million. Herc Holdings Inc. (NYSE:HRI) is a Florida-based company that rents aerial, earthmoving, material handling, trucks, air compressors, compaction, and lighting equipment in the United States.
On April 21, Herc Holdings Inc. (NYSE:HRI)’s Q1 results were reported. The company posted earnings per share of $1.95, missing estimates by $0.01. Revenue for the period increased 25% year-over-year to $567.30 million, outperforming market consensus by $14.53 million.
Baird analyst Mircea Dobre on April 22 lowered the price target on Herc Holdings Inc. (NYSE:HRI) to $158 from $161 and maintained a Neutral rating on the shares. The analyst believes further upside is limited since extremely robust expectations are already reflected in the guidance and estimates. The analyst’s medium-term view remains unchanged.
According to Insider Monkey’s database, Herc Holdings Inc. (NYSE:HRI) was found in the public stock portfolios of 27 hedge funds at the end of the fourth quarter of 2021, compared to 24 funds in the prior quarter. Carl Icahn’s Icahn Capital LP is the biggest shareholder of Herc Holdings Inc. (NYSE:HRI), with more than 4 million shares worth roughly $630 million.
You can also take a look at 7 Best Stocks to Buy Now According to Bill Ackman and 10 Best Stocks to Buy Now According to Billionaire David Harding.
