5 Stocks to Buy Now According to David Einhorn’s Greenlight Capital

4. Southwestern Energy Company (NYSE:SWN)

Greenlight Capital’s Stake Value: $29,633,000 

Percentage of Greenlight Capital’s 13F Portfolio: 1.88%

Number of Hedge Fund Holders: 35

Southwestern Energy Company (NYSE:SWN) is an independent energy company that engages in the exploration, development, and production of natural gas, oil, and natural gas liquids in the United States. The company operates through two segments: Exploration & Production, and Marketing. As of July 20,  Southwestern Energy Company (NYSE:SWN) has gained 44.14% year to date and the company has free cash flows of $1.98 billion.

Wall Street analysts are bullish on Southwestern Energy Company (NYSE:SWN). On July 19, Mizuho analyst Vincent Lovaglio trimmed his price target on Southwestern Energy Company (NYSE:SWN) to $11 from $13 but maintained a Buy rating on the shares. Moreover, BofA analyst Doug Leggate upgraded Southwestern Energy Company (NYSE:SWN) to Buy from Neutral and raised his price target to $13 from $11.

In the first quarter of 2022, Greenlight Capital initiated a position in Southwestern Energy Company (NYSE:SWN) and purchased over 4 million shares of the company. As of March 31, the fund’s stakes in the company are worth $29.63 million, which covers 1.88% of its 13F portfolio.

At the end of Q1 2022, 35 hedge funds were eager on Southwestern Energy Company (NYSE:SWN) and held stakes worth $516.68 million in the company. This is compared to 24 positions in the prior quarter with stakes worth $255.41 million. The hedge fund sentiment for the stock is positive.

Here is what Greenlight Capital had to say about Southwestern Energy Company (NYSE:SWN) in its first-quarter 2022 investor letter:

“SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”