5 Stocks Billionaire Dan Loeb is Selling in 2022

3. Burlington Stores, Inc. (NYSE:BURL)

Number of Hedge Fund Holders: 38

Burlington Stores, Inc. (NYSE:BURL) is a New Jersey-based retailer of branded apparel and accessories in the United States. Dan Loeb’s hedge fund has held a stake in Burlington Stores, Inc. (NYSE:BURL) since Q2 2019. In the fourth quarter of 2021, Third Point owned 1.48 million shares of the company, worth $431.4 million. The fund sold out of its position entirely in Q1 2022. 

On April 27, Loop Capital analyst Laura Champine lowered the price target on Burlington Stores, Inc. (NYSE:BURL) to $135 from $175 and reiterated a Sell rating on the shares after the Q1 earnings miss. The analyst maintained a negative view on the company based on her previous observation of understocked stores, particularly in outerwear and branded apparel. She observed that wage inflation is impacting Burlington Stores, Inc. (NYSE:BURL) significantly.

According to Insider Monkey’s Q1 database, 38 hedge funds were bullish on Burlington Stores, Inc. (NYSE:BURL), compared to 39 funds in the preceding quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest shareholder of the company, with 2.3 million shares worth $423.70 million. 

Here is what Ariel Investments has to say about Burlington Stores, Inc. (NYSE:BURL) its Q1 2021 investor letter:

“Burlington is a leading off-price retailer offering an assortment of apparel, footwear, home, beauty and toys. Shares have risen as investors are increasingly optimistic the company will benefit from higher consumer spending this year with the US economy expected to reopen. In addition to this cyclical tailwind, we believe the company has several internal drivers and a relatively new CEO is spearheading. These include growing its store footprint through smaller formats (~30,000 square feet versus ~50,000 square feet) as it adapts to the evolving brick-and-mortar retail landscape, and closing its sizable margin gap with peers TJ Maxx and Ross by strengthening its merchant team, purchasing inventory items in-season (reacting to sales trends in real time) and reducing store inventory levels (fewer markdowns, higher merchandise margins).”