5 Undervalued Stocks to Buy According to Billionaire Paul Tudor Jones

3. TEGNA Inc. (NYSE:TGNA)

Number of Hedge Fund Holders: 44

Tudor Investment Corp’s Holdings: $15,117,000

Percentage of Tudor Investment Corp’s Portfolio: 0.35%

PE Ratio as of July 1: 9.41

Return since June 30th: -8.6%

TEGNA Inc. (NYSE:TGNA) is a Tysons Corner, Virginia-based broadcast, digital media, and marketing services company.

In February 2022, Standard General LP announced that it intends to acquire TEGNA Inc. (NYSE:TGNA) for $24 per share in cash, reflecting a potential upside of 14.3% from the last closing price as of June 30. The deal is in the process of getting approval from the media bureau of the Federal Communications Commission (FCC). The FCC is looking into how Standard General would negotiate with cable and satellite providers following the completion of the TEGNA Inc. (NYSE:TGNA) acquisition. The acquisition would provide Standard General with more than 60 broadcast licenses, and the FCC is looking into how this would serve the public interest.

In Q1 2022, TEGNA Inc. (NYSE:TGNA) posted an EPS Normalized Actual of $0.59, beating the analysts’ forecasts by $0.06. Furthermore, TEGNA Inc. (NYSE:TGNA) also surpassed the revenue estimates by $8.29 million. In a letter to shareholders in March 2021, it was revealed that the company’s total shareholder return for two years was 34.5%, significantly higher than the competitors’ median of 1.1%.

Here’s what Hourglass Capital said about TEGNA Inc. (NYSE:TGNA) in its Q1 2022 investor letter:

“At the portfolio level, clients fully invested at the start of the year saw an average return of 5.4% in the first quarter after all associated fees. I made three sales during the quarter, all for very different reasons. First, I sold the entirety of our position in TEGNA, Inc., a broadcasting and digital media business, after the company received a leveraged buyout offer by two joint-venture private equity investors, Standard General and Apollo.”

Of the 912 hedge funds in Insider Monkey’s database, 44 funds reported owning a stake in TEGNA Inc. (NYSE:TGNA) as of Q1 2022.