5 Safe Stocks to Buy According to Hedge Funds

4. Activision Blizzard, Inc. (NASDAQ:ATVI)

Beta Value: 0.43
Number of Hedge Fund Holders: 96

Activision Blizzard, Inc. (NASDAQ:ATVI) is a video game holding corporation in Santa Monica, California, US. Some of the top-grossing video games in the world have been created and published by ATVI. It has a diverse portfolio that is balanced across several platforms and genres. Call of Duty, Warcraft, Starcraft, Diablo, Candy Crush Saga, and Overwatch are among its best-known brands.

The company’s balance sheet is quite appealing, with a free cash flow of $1.67 billion. Over the last five years, Activision Blizzard, Inc. (NASDAQ:ATVI)’s debt-to-equity ratio has decreased from 44% to 19.2%. Despite its lackluster performance, Activision Blizzard still pays a $0.47 dividend. The yearly dividend yield for ATVI is 0.61%.

According to Insider Monkey’s data, Activision Blizzard, Inc. (NASDAQ:ATVI) was part of 96 hedge fund portfolios at the end of Q3 2022, compared to 84 in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the company’s biggest stakeholder, with 60.14 million shares worth $4.47 billion.

Cooper Investors discussed Activision Blizzard, Inc. (NASDAQ:ATVI) shares in its Q2 2022 investor letter. Here is what the fund said:

“Activision Blizzard, Inc. (NASDAQ:ATVI) – our investment preceded news that the company was under investigation for workplace bullying. When it became clear management had misled the market on the extent of the problem we sold, led by our principles of Responsible Investing. We did not benefit from the subsequent M&A premium paid by Microsoft.”