In this article, we discuss 5 stocks to sell now according to billionaire Ken Fisher. If you want to read the investment philosophy of Ken Fisher and the detailed analysis of Fisher Asset Management, go directly to 10 Stocks to Sell Now According to Billionaire Ken Fisher.
5. Fiserv, Inc. (NASDAQ:FISV)
Number of Hedge Fund Holders: 59
Fiserv, Inc. (NASDAQ:FISV) is an American multinational company that provides financial technology. The company was added to Fisher Asset Management’s portfolio in the first quarter of 2022 with 7,414 shares worth $752,000. However, the firm dumped all of its Fiserv, Inc. (NASDAQ:FISV) stake in the next quarter.
Fiserv, Inc. (NASDAQ:FISV) has a long history of shareholder returns through stock repurchases. In 2019, the company bought back shares worth $394 million and repurchased stock worth $1.64 billion in 2020. Moreover, in the following year, the company bought back 23.3 million shares for $2.57 billion. However, Fiserv, Inc. (NASDAQ:FISV) is still severely burdened with debt. At the end of Q2 2022, the company had cash and cash equivalents of $883 million, while the long-term debt equaled $20.9 billion.
By the end of the quarter ending June 30, 59 hedge funds had a stake in Fiserv, Inc. (NASDAQ:FISV), valued at $3.69 billion. Harris Associates was the most prominent stakeholder of the company in Q2, with 23.17 million shares worth over $2 billion.
Here is what ClearBridge Investments had to say about Fiserv, Inc. (NASDAQ:FISV) in its Q4 2021 investor letter:
“While the threat of disruption risk to these established payment companies should not be taken lightly, it is important to note that many of these emerging disruptors are small relative to the massive global payments network and heavily reliant on the very payment infrastructure they are trying to disrupt. This led us to initiate a position in Fiserv, whose stock dropped to a level that embedded projections for negative long-term growth despite no current evidence of disruption. We think Fiserv will continue to grow despite perceived disruption risks given its scale and efficiency. Fiserv also owns cloud-based payments hardware and software system Clover, which is both bigger and faster growing than Square; this provides an additional degree of protection against further disruption risk.”
4. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 66
The Connecticut-based Cigna Corporation (NYSE:CI) is a multinational managed healthcare and insurance company. By the end of Q1, Fisher Asset Management had added 947 shares of the company worth $227,000 to its portfolio. The firm sold off its entire position in Cigna Corporation (NYSE:CI) by the quarter ending on June 30.
Cigna Corporation (NYSE:CI)’s EPS in the second quarter surpassed analyst estimates by 73 cents and grew by 18.7% YoY to $6.22. The revenue recorded a 5.45% YoY growth to $45.48 billion. In light of the reports, the company raised its revenue guidance by $1 billion for FY22 to at least $178 billion. On top of that, the company expects its full-year EPS to be at least $22.90, which is $0.30 above the prior guidance.
The Insider Monkey database reveals that 66 hedge fund portfolios had a stake in Cigna Corporation (NYSE:CI) in Q2 2022. Glenview Capital held the most significant position in the company, with over 2 million shares worth $547.117 million.
Here is what Davis Funds had to say about Cigna Corporation (NYSE:CI) in its Q4 2021 investor letter:
“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services, and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”
3. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 68
The Charles Schwab Corporation (NYSE:SCHW) is a Texas-based financial services company. It is one of the largest banking institutions in the United States. Fisher Asset Management had a stake worth $254,000 in the company at the end of Q1 2022. The firm sold its entire position in Q2 2022.
On July 27, The Charles Schwab Corporation (NYSE:SCHW) declared a 10% increase in its quarterly dividend to $0.22, payable on August 26 to the shareholders of record on August 12. Additionally, the company authorized a $15 billion share repurchase program. The company had $1.8 billion of share repurchases remaining under the previous program. As of August 24, The Charles Schwab Corporation (NYSE:SCHW) has a dividend yield of 1.21%.
On August 19, after meeting with The Charles Schwab Corporation (NYSE:SCHW)’s management, Deutsche Bank analyst Brian Bedell reaffirmed a Buy rating on the shares and raised the price target to $95 from $90. According to Bedell, the company’s cash sorting is consistent with the management’s expectations and believes that it is highly unlikely that it will be any worse than the prior rate tightening cycle.
Here is what Baron Funds had to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2022 investor letter:
“Outperformance of the Fund’s investments in Communication Services, Financials, and Industrials and lower exposure to the lagging Consumer Discretionary sector added the most value. Within Financials, higher exposure to this outperforming sector and gains from online brokerage firm The Charles Schwab Corp (NYSE:SCHW) bolstered relative results. Schwab’s shares gained because of the positive impact higher interest rates will have on its future earnings.”
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 75
General Motors Company (NYSE:GM) is the USA’s largest automotive manufacturing company. In Q1 2022, Fisher Asset Management increased its holding in the company by 68% to 9,065 shares worth $397,000. However, the firm closed out the entirety of the stock in Q2 2022.
General Motors Company (NYSE:GM) had previously discontinued dividend payments. On August 19, the company announced the reinstatement of its quarterly dividend at $0.09, payable on September 15 to the shareholders of record on August 31. General Motors Company (NYSE:GM) further announced that it will increase its current share repurchase program to $5 billion from the previous $3.3 billion remaining under the program.
On July 27, Wedbush analyst Daniel Ives maintained an Outperform rating on General Motors Company (NYSE:GM) and lowered the price target to $42 from $50. The analyst added that the company’s Q2 results were mixed and faced tons of supply chain issues. However, Ives noted that the company has a strong EV vision towards the end of the decade.
Here is what Diamond Hill Capital had to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:
“General Motors—and the auto industry in general—continues to face headwinds related to supply chain disruptions and raw material cost inflation. In addition, uncertainty surrounding global energy markets due to inflation and the conflict in Ukraine has created a greater economic burden on consumers, which tends to slow automotive sales.”
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a Texas-based cybersecurity company. In the second quarter of 2022, 77 hedge funds held a position in the company, with a combined stake value of $4.1 billion, compared to 80 hedge funds with combined stakes worth $5.56 billion in the previous quarter.
On August 17, Stifel analyst Brad Reback maintained a Buy rating on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and raised the price target to $220 from $205. Reback raised his price target owing to a survey he conducted which revealed that customers were highly satisfied with CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and are likely to increase their spending in the future.
Fisher Asset Management sold off its entire CrowdStrike Holdings, Inc. (NASDAQ:CRWD) position in the second quarter of 2022. In the previous quarter, the firm owned 903 shares of the company, valued at $205,000.
Here is what ClearBridge Investments had to say about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q2 2022 investor letter:
“The severity of the current selloff, exacerbated by extreme negative investor sentiment, especially toward growth stocks, has compressed the multiples of a number of portfolio companies despite strong fundamentals and led us to add to several existing positions. One example is cybersecurity software provider, CrowdStrike (NASDAQ:CRWD), which continues to execute well against a robust demand environment for its endpoint security solutions with quarterly results and forward guidance outperforming expectations.”
You can also check out the 10 Stocks That Billionaire Rob Citrone Is Selling and 10 Stocks Analysts Are Downgrading After Weak Earnings Reports.
