In this article, we will be taking a look at 5 stocks to sell according to billionaire Richard Chilton. To read our detailed analysis of Chilton’s investment strategy, you can go directly to see the 10 Stocks to Sell According to Billionaire Richard Chilton.
5. Texas Roadhouse Inc (NASDAQ:TXRH)
Number of Hedge Fund Holders: 36
Texas Roadhouse Inc (NASDAQ:TXRH) is a consumer discretionary company operating casual dining restaurants in the US and abroad. The company’s position was entirely sold in Chilton Investment Company’s portfolio in the third quarter, when the fund sold its 23,207 shares in it. Hence, it is among the stocks to sell according to billionaire Richard Chilton.
Evercore ISI analyst David Palmer holds an Outperform rating on Texas Roadhouse Inc (NASDAQ:TXRH) shares as of this January.
The company’s EPS in the fiscal third quarter of 2021 was $0.75, and its revenue was $868.9 million.
In the third quarter of 2021, 36 hedge funds held stakes in Texas Roadhouse Inc (NASDAQ:TXRH) worth about $993 million.
4. Coherent, Inc. (NASDAQ:COHR)
Number of Hedge Fund Holders: 37
Coherent, Inc. (NASDAQ:COHR) is an information technology company providing lasers, laser-based technologies, and laser-based system solutions. The company’s acquisition by II-VI was confirmed earlier this January. Chilton Investment Company has also entirely sold its stake in the company as of the third quarter, making it one of the stocks to sell according to billionaire Richard Chilton.
For the fiscal fourth quarter of 2021, the company’s EPS was $1.77, and its revenue was $391.6 million.
Out of 867 hedge funds, 37 hedge funds held stakes in Coherent, Inc. (NASDAQ:COHR) in the third quarter, compared to 43 hedge funds in the previous quarter. Their total stake value was $1.5 billion.
Appleseed Fund, an investment management firm, mentioned Coherent, Inc. (NASDAQ:COHR) in its first-quarter 2021 investor letter. Here’s what they 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.”
3. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 39
Ecolab Inc. (NYSE:ECL) is another specialty chemicals company among the stocks to sell according to billionaire Richard Chilton. The company provides water, hygiene, and infection prevention solutions and services.
Deutsche Bank analyst David Begleiter holds a Buy rating on Ecolab Inc. (NYSE:ECL) shares as of this January.
The earnings history for Ecolab Inc. (NYSE:ECL) shows an EPS of $1.38 in the fiscal third quarter of 2021 and revenue of $3.32 billion. Both beat estimates by $0.08 and $65.2 million respectively.
There were 39 hedge funds long Ecolab Inc. (NYSE:ECL) in the third quarter of 2021, with shares worth $2.6 billion.
2. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 42
United Parcel Service, Inc. (NYSE:UPS) provides letter and package delivery, transportation, logistics, and financial services. The company is among the stocks to sell according to billionaire Richard Chilton, whose hedge fund sold its 14,626 shares in the company in the third quarter.
Exane BNP Paribas analyst Robert Joynson holds a Neutral rating on United Parcel Service, Inc. (NYSE:UPS) shares as of this January.
The company’s EPS in the fiscal third quarter of 2021 was $2.71 and its revenue was $23.18 billion. Both beat estimates by $0.16 and $613.3 million respectively.
Our hedge fund data shows 42 hedge funds long United Parcel Service, Inc. (NYSE:UPS) in the third quarter, and 52 hedge funds long the stock in the previous quarter. The total stake values were $1.3 billion and $2.2 billion respectively.
ClearBridge Investments, an investment management firm, mentioned United Parcel Service, Inc. (NYSE:UPS) in its third-quarter 2021 investor letter. Here’s what they said:
“United Parcel Service (UPS), coming off extraordinary performance in the second quarter, saw some weakness after its margin guidance disappointed, partly due to remaining contract renegotiations skewing to large enterprises where price increases will be tougher to implement, while labor availability and costs are also expected to pressure margins. It also traded down in sympathy with Federal Express, which cited constrained labor supply affecting network efficiency and exacerbating margin pressure from higher wages. In UPS’s case, concerns around wage inflation could be overstated as UPS has baked in wage hikes in long-term contracts and has somewhat less exposure to shortterm market wage rates. We remain confident in UPS’s strategy of profitable growth and disciplined pricing as it focuses on its high level of on-time delivery and customer satisfaction, a formula that should hold the company in good stead for the long term.”
1. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 96
Booking Holdings Inc. (NASDAQ:BKNG) provides travel and restaurant online reservation and related services. Despite its renown, the company is among the stocks to sell according to billionaire Richard Chilton as of the third quarter, when his fund reduced the stock’s percentage in its portfolio from 0.2% to 0.02%.
Piper Sandler analyst Thomas Champion holds a Neutral rating on shares of Booking Holdings Inc. (NASDAQ:BKNG) as of this January.
The company’s EPS in the fiscal third quarter of 2021 was $37.70, beating estimates by $4.6. Its revenue was $4.6 billion, also beating estimates by $385.44 million. Booking Holdings Inc. (NASDAQ:BKNG) has also gained 8.1% in the past six months.
For the last stock on our list, Booking Holdings Inc. (NASDAQ:BKNG), we see 96 hedge funds holding stakes in it in the third quarter of 2021, worth $8.4 billion.
Wedgewood Partners, an investment management firm, mentioned Booking Holdings Inc. (NASDAQ:BKNG) in its fourth-quarter 2021 investor letter. Here’s what they said:
“Booking Holdings also contributed to performance, though less so compared to most portfolio holdings. The Company reported substantial room-night growth compared to the year ago period, which was heavily affected by COVID. Intra-quarter, Booking Holdings consolidated room-nights approached almost 90% of pre-COVID levels because both domestic and international travelers have had to endure a few years of pent-up travel aspirations and are being eased back into the market with various governments relaxing some of their most stringent, COVID-related travel restrictions. Although infection rates related to new COVID variants (particularly Omicron) have risen subsequent to last quarter, we think populations around the world are coming to grips with the risk of infection and will inevitably return to spending on travel. Booking Holdings represents a key source of demand for the small and medium sized hospitality industry and has the second largest global booking volume for alternative accommodations. The latter observation is significantly misunderstood by investors and represents substantial upside to the stock, regardless of the timing of the recovery of traditional hospitality spending; hence, we added to our position in Booking Holdings.”
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