5 Stocks Big Short Michael Burry Is Buying and Selling

2. Black Knight, Inc. (NYSE:BKI)

Number of Hedge Fund Holders: 47

Scion Asset Management’s Stake Value: $9,262,500

Black Knight, Inc. (NYSE:BKI) is a Florida-based provider of integrated software, data, and analytics solutions worldwide. Black Knight, Inc. (NYSE:BKI) is one of the largest holdings of Michael Burry. He purchased 150,000 shares of the company in the fourth quarter of 2022, worth $9.2 million and representing nearly 20% of the total 13F securities. 

On December 2, Barclays analyst Manav Patnaik downgraded Black Knight, Inc. (NYSE:BKI) to Equal Weight from Overweight with an unchanged price target of $65. The analyst said he is currently waiting for more information on the outlook for U.S. business and information services stocks in 2023, and suggested that investors reduce their exposure to such stocks and wait for guidance from companies. The analyst preferred companies that provide conservative guidance.

According to Insider Monkey’s third quarter database, 47 hedge funds were long Black Knight, Inc. (NYSE:BKI), compared to 46 funds in the prior quarter. Simon Davies’ Sand Grove Capital Partners held the largest stake in the company, comprising 1.4 million shares worth $93 million. 

Madison Funds made the following comment about Black Knight, Inc. (NYSE:BKI) in its fourth-quarter 2022 investor letter:

“Our largest individual detractors were Brookfield Corporation, Alphabet, Amazon, Black Knight, Inc. (NYSE:BKI), and Dollar Tree. Alphabet’s price-to-earnings multiple continues to contract due to concerns about the potential for revenue to be more economically sensitive than it has been historically, given the vast size of the business today. At Amazon, cost pressures and slowing AWS growth weighed on its share price. The regulatory status of Intercontinental Exchange’s pending acquisition offer for Black Knight remains a concern, while in the interim, business conditions have deteriorated given the slowdown in the mortgage market.”