Activist Investor Jeff Smith’s 2022 Portfolio: Top 5 Stock Picks

1. GoDaddy Inc. (NYSE:GDDY)

Starboard Value’s Stake Value: $690,560,000

Percentage of Starboard Value’s 13F Portfolio: 9.15%

Number of Hedge Fund Holders: 43

GoDaddy Inc. (NYSE:GDDY) engages in the design and development of cloud-based technology products in the United States and internationally. It is the top holding of Starboard Value as of Q1 2022. As of March 31, Starboard Value owns more than 8.25 million shares of GoDaddy Inc. (NYSE:GDDY) which brings its stakes in the company to $690.56 million. The investment covers 9.15% of Starboard Value’s 13F portfolio.

This May GoDaddy Inc. (NYSE:GDDY) posted earnings for the fiscal first quarter of 2022. The company reported an EPS of $0.79, missing estimates by $0.06. Moreover, the company’s revenues came in at $1 billion, up 11.28% year over year, and outperforming Wall Street consensus by $13.50 million.

This May, Jefferies analyst Brent Thill lowered his price target on GoDaddy Inc. (NYSE:GDDY) to $100 from $110 and reiterated a Buy rating on the shares.

By the end of the first quarter of 2022, 43 hedge funds were bullish on GoDaddy Inc. (NYSE:GDDY) with stakes of $2.42 billion. This is compared to 41 hedge funds in Q4 2021 with stakes worth $2.85 billion.

Canterbury Tollgate mentioned GoDaddy Inc. (NYSE:GDDY) in its third-quarter 2021 investor letter. Here is what the firm said:

“GoDaddy (GDDY) in particular sold off after reporting quarterly earnings in early August. Yet they are still growing the top line by more than 10 percent per annum. Short term pain creates opportunity. Presently GDDY trades at a greater than 5.5 percent trailing FCF yield, and a 7.2 percent 2021 yield based on my own (lower than consensus) estimation. Deferred revenue continues to improve. CEO Aman Bhutani and team have done an excellent job rebranding the company. I’m confident they will continue to address challenges along the way and keep GoDaddy on the right path.”

You can also take a look at 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks and Barry Rosenstein and Jana Partners’ Top Stock Picks.

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