In this article, we discuss 5 value stocks in Blackstone Group’s portfolio. If you want our detailed analysis of these stocks, go directly to 10 Value Stocks in Blackstone Group’s Portfolio.
5. Kilroy Realty Corporation (NYSE:KRC)
Number of Hedge Fund Holders: 24
P/E Ratio: 13.30
Kilroy Realty Corporation (NYSE:KRC) is a real estate investment trust which develops business properties across San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. Blackstone Group owns 519,761 shares of Kilroy Realty Corporation (NYSE:KRC), worth $34.5 million, representing 0.08% of the fund’s total 13F securities.
Kilroy Realty Corporation (NYSE:KRC) on February 8 declared a per share quarterly dividend of $0.52, in line with previous. The dividend is payable on April 13, to shareholders of record on March 31.
On January 31, the company reported its guidance for 2022, announcing a FFO per share of $4.35-$4.55 with a midpoint of $4.45 per share, better than the consensus estimate of $4.34 per share. Assumptions for the year include $200 million to $500 million of dispositions, same-store cash net operating income of 4.5%-5.5%, and year-end occupancy of 91.0%-92.0%.
BofA analyst James Feldman upgraded Kilroy Realty Corporation (NYSE:KRC) on February 25 to Buy from Neutral with a price target of $83, up from $82. The stock offers “good value” and improving outlook for demand of CBD in the San Francisco market, the analyst tells investors in a research note.
According to the Q4 database of Insider Monkey, 24 hedge funds held long positions in Kilroy Realty Corporation (NYSE:KRC), with collective stakes amounting to roughly $370 million. Oaktree Capital Management held the biggest stake in the company, with 1.5 million shares worth $102 million.
4. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 33
P/E Ratio: 2.52
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a top Israeli global carrier offering container shipping, refrigerated cargo, and logistics services. Blackstone Group owns 289,761 shares of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), worth over $17 million.
In addition to being a notable value stock in Blackstone Group’s Q4 portfolio, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) on November 17 declared a $2.50 per share interim dividend. The dividend was paid on December 27, representing approximately 20% of the quarterly net income. The company expects to distribute 30-50% of its total 2021 net income in 2022.
On February 10, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) announced a new charter agreement with Navios Maritime Partners, according to which ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) will charter a total of thirteen container vessels comprising five secondhand vessels and eight newbuild vessels for total charter hire consideration of approximately $870 million.
Jefferies analyst Randy Giveans on January 28 raised the price target on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) to $100 from $80 and kept a Buy rating on the shares, which he is adding to the firm’s “Franchise Picks” list after increasing his Q4, 2022, and 2023 EPS estimates given container freight rates remain at record levels.
Among the hedge funds tracked by Insider Monkey, 33 funds were bullish on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in Q4 2021, up from 22 funds in the prior quarter. Marshall Wace LLP held the biggest stake in the company, with 2.70 million shares worth $159.3 million.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in its Q2 2021 investor letter:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
3. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
P/E Ratio: 5.16
Energy Transfer LP (NYSE:ET) provides energy-related services in the state of Texas and Oklahoma. Blackstone Group owns 171.5 million Energy Transfer LP (NYSE:ET) shares as of Q4 2021, worth $1.4 billion, representing 3.53% of the firm’s 13F portfolio.
On February 16, Energy Transfer LP (NYSE:ET) announced its Q4 results, reporting earnings per share of $0.30, exceeding consensus estimates by $0.08. The company’s revenue jumped roughly 86% year-on-year to $18.66 billion, surpassing market predictions by $2.04 billion.
Energy Transfer LP (NYSE:ET) on January 25 declared a $0.175 per share quarterly dividend, a 14.8% increase from its previous dividend of $0.1525. The dividend was paid on February 18, to shareholders of record on February 8.
Mizuho analyst Gabriel Moreen raised the price target on Energy Transfer LP (NYSE:ET) on February 18 to $14 from $13 and kept a Buy rating on the shares. In addition to issuing a “strong” 2022 EBITDA guidance, Energy Transfer LP (NYSE:ET) also reported positive updates in several commercial key areas that enhance its growth potential, the analyst told investors in a research note.
Abrams Capital Management held the biggest stake in Energy Transfer LP (NYSE:ET), with 22.1 million shares worth $182 million. Overall, 36 hedge funds were bullish on Energy Transfer LP (NYSE:ET), with collective stakes amounting to $635.6 million.
Here is what Miller Value Partners has to say about Energy Transfer LP (NYSE:ET) in its Q2 2021 investor letter:
“Energy Transfer LP (ET)rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”
2. OneMain Holdings, Inc. (NYSE:OMF)
Number of Hedge Fund Holders: 44
P/E Ratio: 5.20
Based in Evansville, Indiana, OneMain Holdings, Inc. (NYSE:OMF) is a financial services holding company engaged in the consumer finance and insurance businesses. Blackstone Group holds 650,000 OneMain Holdings, Inc. (NYSE:OMF) shares as of Q4 2021, worth $32.5 million.
On February 2, OneMain Holdings, Inc. (NYSE:OMF) declared a $0.95 per share quarterly dividend, a 35.7% increase from its prior dividend of $0.70. The dividend was paid on February 18.
OneMain Holdings, Inc. (NYSE:OMF) reported its Q4 results on February 2, posting an EPS of $2.38, exceeding market estimates by $0.03. The $1.02 billion revenue missed estimates by $43.28 million.
JPMorgan analyst Richard Shane lowered the price target on OneMain Holdings, Inc. (NYSE:OMF) on January 19 to $56 from $64 and kept an Overweight rating on the shares. The analyst reduced target multiples on consumer finance companies by 8%, on average. He views 2022 as a transition year and believes that the probability is shifting from 2023 earnings representing normalized earnings to 2023.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 44 funds were bullish on OneMain Holdings, Inc. (NYSE:OMF), up from 41 funds in the preceding quarter. Arrowstreet Capital is the biggest stakeholder of the company, with 2.4 million shares worth $121.3 million.
Here is what Miller Howard Investments has to say about OneMain Holdings, Inc. (NYSE:OMF) in its Q3 2021 investor letter:
“We bought OneMain Holdings (OMF), a non-bank provider of personal loans. OneMain is benefitting from the favorable credit environment and management is exceptionally dedicated to paying dividends, both regular and special.”
1. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 45
P/E Ratio: 10.83
Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based independent oil and natural gas company that operates in the Permian Basin in West Texas. Blackstone Group owns 10.5 million Diamondback Energy, Inc. (NASDAQ:FANG) shares as of Q4 2021, worth $1.14 billion, representing 2.86% of the firm’s 13F portfolio.
On February 22, Diamondback Energy, Inc. (NASDAQ:FANG) announced a per share quarterly dividend of $0.60, reflecting a 20% increase from its earlier dividend of $0.50. The dividend is payable on March 11, to shareholders of record on March 4.
Diamondback Energy, Inc. (NASDAQ:FANG) published its Q4 results on February 22, posting an EPS of $3.63, exceeding estimates by $0.27. The $2.02 billion revenue outperformed market consensus by $339.49 million.
RBC Capital analyst Scott Hanold on February 24 raised the price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $160 from $150 and kept an Outperform rating on the shares. The analyst is positive about Diamondback Energy, Inc. (NASDAQ:FANG)’s commitment to maintenance, production, and “exceptional” cost management.
Harris Associates is the leading Diamondback Energy, Inc. (NASDAQ:FANG) stakeholder as of Q4 2021, with more than 3 million shares worth roughly $328 million. Overall, 45 hedge funds held long positions in Diamondback Energy, Inc. (NASDAQ:FANG) in the fourth quarter of 2021, down from 51 funds in the quarter prior.
Here is what Miller Opportunity Equity has to say about Diamondback Energy, Inc. (NASDAQ:FANG) in its Q4 2021 investor letter:
“Diamondback Energy (FANG) returned 14.4% in the quarter as oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom line. The company reported revenue of $1.9B beating consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
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