In this article, we will look at 5 stocks you should sell in 2022 according to billionaire Dan Loeb. If you want to read about Dan Loeb’s view on the current market situation and his hedge fund’s performance, you can go to 10 Stocks You Should Sell in 2022 According to Billionaire Dan Loeb.
5. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 67
CF Industries Holdings, Inc. (NYSE:CF) manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide. On June 17, Citi analyst P.J. Juvekar slashed his price target on CF Industries Holdings, Inc. (NYSE:CF) to $99 from $123 and downgraded the stock to Neutral from Buy.
On June 6, it was reported in a regulatory filing that Richard Hoker, vice president and corporate controller at CF Industries Holdings, Inc. (NYSE:CF), sold roughly 6,600 shares of the company’s common stock at $94.9048 per share.
Third Point owned roughly 1.24 million shares of CF Industries Holdings, Inc. (NYSE:CF) at the end of Q4 2022. In the first quarter of 2022, the fund exited its position in the company after discarding 100% of its previous stakes in it.
At the close of Q1 2022, 67 hedge funds disclosed ownership of stakes in CF Industries Holdings, Inc. (NYSE:CF). The total stakes of these hedge funds amounted to $1.53 billion, down from $1.54 billion in the previous quarter with 58 positions.
4. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 78
On June 14, Wells Fargo released a list of 55 stocks that the bank named among its top recession stock picks. Comcast Corporation (NASDAQ:CMCSA) was one of Wells Fargo’s top recession stock picks from the communication services sector. However, in the first quarter of 2022, Dan Loeb’s Third Point sold off its 2 million shares in the company and completely exited the stock.
As of June 2, Wolfe Research analyst Peter Supino has a $50 price target and a sell-side Peer Perform rating on Comcast Corporation (NASDAQ:CMCSA).
At the close of Q1 2022, 78 hedge funds were bullish on Comcast Corporation (NASDAQ:CMCSA) and held stakes worth $7.12 billion in the company. This is compared to 80 positions a quarter ago with stakes of $8.63 billion. The hedge fund sentiment for the stock is negative.
Here is what ClearBridge Investments had to say about Comcast Corporation (NASDAQ:CMCSA) in its “All Cap Growth Strategy” fourth-quarter 2021 investor letter:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
3. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 88
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel company in the United States and internationally. The company has three primary business segments: Retail, B2B, and Trivago. On June 19, Goldman Sachs released its list of stable stocks that the bank is recommending for these market conditions, and Expedia Group, Inc. (NASDAQ:EXPE) was among the bank’s top consumer discretionary picks.
On June 16, Citi analyst Ronald Josey lowered his price target on Expedia Group, Inc. (NASDAQ:EXPE) to $118 from $200 and reiterated a Neutral rating on the shares.
Expedia Group, Inc. (NASDAQ:EXPE) might be viewed as a stable investment option by Goldman Sachs’ analysts. However, not all investors and analysts think alike. In the first quarter of 2022, Third Point fully discarded its previous stakes of $236.26 million in the company and exited its position.
Insider Monkey found 88 hedge funds long Expedia Group, Inc. (NASDAQ:EXPE) at the end of Q1 2022. The total stakes of these hedge funds came in at $6.33 billion. This is compared to 82 positions in the previous quarter with stakes worth $7.48 billion.
Aristotle Capital Management shared its views on Expedia Group, Inc. (NASDAQ:EXPE) in its “Aristotle Focus Growth Fund” first-quarter 2022 investor letter. Here is what the firm said:
“Expedia outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which has improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined.”
2. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
Looking back to the fourth quarter of 2021, Third Point owned 2 million shares of The Walt Disney Company (NYSE:DIS) which amounted to a stake of $309.78 million. In the first quarter of 2022, billionaire Dan Loeb sold his hedge fund’s position in the company and discarded 100% of its stakes.
The Walt Disney Company (NYSE:DIS) was also named among Goldman Sachs’ top stable stock picks for the current market on June 19. The stock was among Goldman Sachs’ top picks from the communication services sector. On the other hand, Wells Fargo analysts believe The Walt Disney Company (NYSE:DIS) is a risky stock to invest in at the moment and named it among its list of top 50 stocks to short or avoid that was released on June 19.
As of June 15, Evercore ISI analyst Vijay Jayant has an Outperform rating and a $150 price target on The Walt Disney Company (NYSE:DIS).
At the end of the first quarter of 2022, 113 hedge funds were long The Walt Disney Company (NYSE:DIS) with stakes worth $5.16 billion in the company. This is compared to 111 positions in the prior quarter with stakes worth $6.94 billion. The hedge fund sentiment for the stock is negative.
Here is what Harding Loevner had to say about The Walt Disney Company (NYSE:DIS) in its recently published first-quarter 2022 investor letter:
“The war in Ukraine has given new urgency to the question of whether globalization has reached a tipping point and if the familiar web of decentralized, just-in-time, global supply chains will be a casualty of the inward turn dividing countries into competing trading blocs. It is probably too soon to know. We sold Disney (NYSE:DIS), due to some concerns about the increasing capital intensity of its business amid signs of rising competition and slowing growth in streaming media consumption.”
1. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
On June 2, Piper Sandler analyst Thomas Champion trimmed his price target on Alphabet Inc. (NASDAQ:GOOG) to $2,775 from $2,900 and reiterated an Overweight rating on the shares.
On June 23, Alphabet Inc.’s (NASDAQ:GOOG) Google released information about the next update of its Chrome web browser for iOS. The company reported that it will be debuting five new features for iPhone and iPad users which include enhanced security from phishing and malicious software, autofill passwords on multiple applications, and faster translation of webpages into the user’s native language, among others.
Shares of Alphabet Inc. (NASDAQ:GOOG) have declined by 18.39% year-to-date as of June 24. In the first quarter of 2022, Dan Loeb’s hedge fund exited Alphabet Inc. (NASDAQ:GOOG) after discarding its Q4 2021 stakes of $614.17 million in the company.
Insider Monkey found 160 hedge funds bullish on Alphabet Inc. (NASDAQ:GOOG) at the close of Q1 2022. These funds held collective stakes of $29.68 billion in the company, down from $36.62 billion a quarter ago with 158 positions.
Here is what Baron Funds said about Alphabet Inc. (NASDAQ:GOOG) in its recently published first-quarter 2022 investor letter:
“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the fourth quarter of 2021 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”
You can also take a look at 10 Stocks Warren Buffett is Selling and 10 Stocks Stanley Druckenmiller is Selling.
