5 Stocks to Sell in 2023 According to Billionaire Steve Cohen

In this article, we discuss 5 stocks to sell in 2023 according to billionaire Steve Cohen. If you want to see more stocks in this selection, check out 10 Stocks to Sell in 2023 According to Billionaire Steve Cohen. 

5. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 83

Union Pacific Corporation (NYSE:UNP) operates in the railroad business in the United States. In Q4 2022, billionaire Steve Cohen owned 269,699 shares of the company worth $55.8 million. However, in the first quarter of 2023, Cohen discarded his entire stake in Union Pacific Corporation (NYSE:UNP).

On April 21, RBC Capital analyst Walter Spracklin lowered the firm’s price target on Union Pacific Corporation (NYSE:UNP) to $184 from $191 and keeps a Sector Perform rating on the shares after its Q1 results. While Union Pacific’s adjusted Q1 earnings per share (EPS) of $2.53 fell short of expectations, the analyst suggests that there is a possibility that the stock price may actually increase as the company’s financial performance worsens. This is because the market is factoring in a higher likelihood of Union Pacific hiring an executive with expertise in Precision Scheduled Railroading.

According to Insider Monkey’s Q4 database, 83 hedge funds were long Union Pacific Corporation (NYSE:UNP), compared to 74 funds in the prior quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the largest stakeholder of the company.

Matrix Asset Advisors made the following comment about Union Pacific Corporation (NYSE:UNP) in its Q1 2023 investor letter:

“During the quarter we added a new position in Union Pacific Corporation (NYSE:UNP). Union Pacific (UNP) is the 2nd largest railroad network in the United States just behind Burlington Northern Santa Fe. The firm operates in the Western, Midwestern, and Southern portions of the United States. 90% of UNP sales come from the US and 10% from Mexico. Over the past decade, railroads gained market share from the trucking industry because it costs 10-40% less to ship via rails than trucks. The company has a long history of consistent operating growth and profitability. The shares fell from a high of $278 in May of 2022 after the firm experienced operating challenges due to a slower macro environment and higher expenses.”