5 Narrow Moat Stocks Hedge Funds Are Buying

4. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders: 52   

Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel firm. On December 20, investment advisory Argus maintained a Buy rating on Expedia Group, Inc. (NASDAQ: EXPE) stock and raised the price target to $171 from $158. 

At the end of the third quarter of 2023, 52 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Expedia Group, Inc. (NASDAQ:EXPE), compared to 57 in the previous quarter worth $2.1 billion.

In its Q2 2023 investor letter, Patient Capital Management, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:

“We like other names mostly ignored by the market for similar reasons. Names like Expedia Group, Inc. (NASDAQ:EXPE), General Motors (GM) and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”