In this article, we discuss 5 stocks to buy according to Carlson Capital. If you want to read our detailed analysis of the fund’s history, investment philosophy, and hedge fund performance, go directly to 10 Stocks to Buy According to Carlson Capital.
5. Coherent, Inc. (NASDAQ:COHR)
Carlson Capital’s Stake Value: $38,180,000
Percentage of Carlson Capital’s Portfolio: 2.61%
Number of Hedge Fund Holders: 36
Coherent, Inc. (NASDAQ:COHR) provides photonics-based technologies for commercial and scholarly purposes. The successful purchase of Coherent, Inc. (NASDAQ:COHR) by II-VI Incorporated (NASDAQ:IIVI) on July 1 resulted in the creation of a world leader in materials, networking, and lasers. The merged business will be known as Coherent and trade on the Nasdaq stock exchange under the ticker COHR.
Richard Shannon, an analyst with Craig-Hallum, maintained a ‘Buy’ rating on II-VI Incorporated (NASDAQ:IIVI) on July 1 but slashed his price objective from $85 to $80. However, the analyst modified his anticipated model when it became clear that the II-VI Incorporated (NASDAQ:IIVI) – Coherent, Inc. (NASDAQ:COHR) agreement would close.
According to Insider Monkey’s Q1 data, 36 hedge funds were bullish on Coherent, Inc. (NASDAQ:COHR), down from 38 funds in the preceding quarter. Pentwater Capital Management was the biggest shareholder of Coherent, Inc. (NASDAQ:COHR), with 774,000 shares worth $211.58 million.
Appleseed Fund mentioned Coherent, Inc. (NASDAQ:COHR) in its Q1 2021 investor letter. Here is what the fund said:
“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Coherent (COHR). During the quarter, Coherent announced that it was being acquired, after which several other bidders emerged. Between the takeover announcement and the bidding war among Coherent suitors, the shares rallied strongly during the quarter.”
4. Rogers Corporation (NYSE:ROG)
Carlson Capital’s Stake Value: $42,114,000
Percentage of Carlson Capital’s Portfolio: 2.88%
Number of Hedge Fund Holders: 24
Rogers Corporation (NYSE:ROG) creates, develops, and manufactures engineered materials and components for sale to original equipment manufacturers and component suppliers. Carlson Capital started investing in Rogers Corporation (NYSE:ROG) during Q4 of 2021, purchasing shares worth $19.11 million. At the end of Q1 2022, the hedge fund owned 155,000 Rogers Corporation (NYSE:ROG) shares, valued at over $42.11 million. The stake in the company made up 2.88% of the hedge fund’s portfolio value.
On January 25, Rogers Corporation (NYSE:ROG) reported that its shareholders had accepted its previously announced purchase by DuPont de Nemours, Inc. (NYSE:DD). DuPont de Nemours, Inc. (NYSE:DD) was downgraded to ‘Hold’ from ‘Buy’ on June 16 by Jefferies analyst Laurence Alexander, who also reduced his price objective to $60 from $92. The analyst downgraded five chemical companies, claiming that the group’s risk profile no longer seemed attractive in light of rising interest rates.
According to Insider Monkey’s Q1 data, 24 hedge funds were bullish on Rogers Corporation (NYSE:ROG), compared to 28 funds in the preceding quarter. Alec Litowitz and Ross Laser’s Magnetar Capital was the largest shareholder of Rogers Corporation (NYSE:ROG), with 537,111 shares worth about $145.93 million.
3. Zynga Inc. (NASDAQ:ZNGA)
Carlson Capital’s Stake Value: $59,136,000
Percentage of Carlson Capital’s Portfolio: 4.04%
Number of Hedge Fund Holders: 63
Zynga Inc. (NASDAQ:ZNGA) creates, distributes, and manages social game services domestically and abroad. Carlson Capital added Zynga Inc. (NASDAQ:ZNGA) to its Q1 portfolio by purchasing 6.40 million shares worth $59.14 million, representing 4.04% of its 13F portfolio’s value. On May 23, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) formally closed its $12.7 billion acquisition of Zynga Inc. (NASDAQ:ZNGA).
On June 29, UBS analyst John Hodulik maintained a ‘Neutral’ rating on Take-Two Interactive Software, Inc. (NASDAQ:TTWO) while cutting the price objective to $143 from $185. The closure of the Zynga acquisition and the reduced multiples in the gaming industry were reflected in the analyst’s revised model.
According to Insider Monkey’s Q1 data, 63 hedge funds were bullish on Zynga Inc. (NASDAQ:ZNGA), compared to 47 funds in the earlier quarter. Ric Dillon’s Diamond Hill Capital held the largest stake in Zynga Inc. (NASDAQ:ZNGA), comprising 31.33 million shares worth $289.48 million.
2. Cerner Corporation (NASDAQ:CERN)
Carlson Capital’s Stake Value: $77,187,000
Percentage of Carlson Capital’s Portfolio: 5.28%
Number of Hedge Fund Holders: 64
Cerner Corporation (NASDAQ:CERN) provides technology-enabled services and health information technology solutions domestically and internationally alongside its subsidiaries. Carlson Capital increased its stake in Cerner Corporation (NASDAQ:CERN) by 74% in the first quarter, ending the period with $77.19 million worth of the company’s stock.
Oracle Corporation (NYSE:ORCL) completed its acquisition of Cerner Corporation (NASDAQ:CERN) on June 8, 2022. With a price objective of $90, Stefan Slowinski of Exane BNP Paribas lifted Oracle from ‘Neutral’ to ‘Outperform’ on June 29.
Cerner Corporation (NASDAQ:CERN) saw a rise in hedge fund sentiment in Q1. At the conclusion of the first quarter of 2022, there were 64 hedge funds with long positions, up from 61 positions the previous quarter. Israel Englander’s Millennium Management held a prominent position in Cerner Corporation (NASDAQ:CERN), consisting of 5.53 million shares worth $517.05 million.
1. SWK Holdings Corporation (NASDAQ:SWKH)
Carlson Capital’s Stake Value: $153,503,000
Percentage of Carlson Capital’s Portfolio: 10.5%
Number of Hedge Fund Holders: 5
SWK Holdings Corporation (NASDAQ:SWKH) is a financier of healthcare capital. The business provides a range of life science businesses, organizations, and innovators with funding options. Kyle Bauser, a Lake Street analyst, initiated coverage of SWK Holdings Corporation (NASDAQ:SWKH) on April 18, assigning a ‘Buy’ rating and a $26 price target.
SWK Holdings Corporation (NASDAQ:SWKH) stood at the topmost position in the portfolio of Carlson Capital in the first quarter of 2022. The hedge fund began building its stake in SWK Holdings Corporation (NASDAQ:SWKH) back in the first quarter of 2020, and was adding to its position heading into 2022. The hedge fund held 9.09 million shares worth about $153.50 million on March 31. Overall, 5 hedge funds in Insider Monkey’s database of 912 funds were bullish on SWK Holdings Corporation (NASDAQ:SWKH) in the first quarter of 2022.
You can also take a peek at 10 Stocks to Buy According to Stephen DuBois’ Camber Capital Management and 7 Stocks to Buy According to Eduardo Costa’s Calixto Global Investors.
