5 Stocks You Should Sell According to Motley Fool

3. Cardlytics, Inc. (NASDAQ:CDLX)

Number of Hedge Fund Holders: 27

Percentage Decrease in Stake in Q4: 21%

Cardlytics, Inc. (NASDAQ:CDLX) was incorporated in 2008 and is headquartered in Atlanta, Georgia. The company offers a digital advertising platform to financial institutions in the United States and the United Kingdom. Motley Fool’s 13F filings for Q4 2021 reveal that it trimmed the Cardlytics, Inc. (NASDAQ:CDLX) stake by 21%. The hedge fund owns 168,586 shares worth $11.14 million, representing 0.71% of the total portfolio. 

On April 4, Wells Fargo analyst Jeff Cantwell initiated coverage of Cardlytics, Inc. (NASDAQ:CDLX) with an Overweight rating and a $72 price target. The analyst is positive on Cardlytics, Inc. (NASDAQ:CDLX)’s positioning and strategy, noting that it is set for robust top-line growth in FY22 and FY23 because of recovery across its verticals and strong execution. Cardlytics, Inc. (NASDAQ:CDLX)’s improving EBITDA profile is also forecasted to be a “nice ongoing catalyst”, the analyst added.

According to the fourth quarter database of Insider Monkey, 27 hedge funds were long Cardlytics, Inc. (NASDAQ:CDLX), compared to 23 funds in the last quarter. Clifford A. Sosin’s CAS Investment Partners is the leading shareholder of the company, with a position worth $342.7 million. 

Here is what Headwaters Capital has to say about Cardlytics, Inc. (NASDAQ:CDLX) in its Q4 2021 investor letter:

“Sells: Cardlytics (“CDLX”). The CDLX position was sold during the quarter as it had become an opportunity cost in the portfolio. CDLX was a small position at the beginning of the year and has subsequently underperformed throughout the year due to a couple of poor strategic acquisitions along with a depressed spending environment from its customer base. The acquisitions were particularly concerning given that the company has not articulated a clear strategic rationale for the deals and have delayed the company’s path to profitability given that both of the acquired companies are generating losses. Given the small size of the position and the need for capital for more attractive investment opportunities, the entire CDLX position was sold during the quarter.”