In this article, we discuss 5 stocks billionaire George Soros is selling in 2022. If you want to see more stocks discarded by the billionaire, check out Billionaire George Soros is Selling These 10 Stocks in 2022.
5. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 60
Peloton Interactive, Inc. (NASDAQ:PTON) is a New York-based company that offers interactive fitness products and exercise lessons to clients in North America and internationally. George Soros’ Soros Fund Management owned 373,083 shares of Peloton Interactive, Inc. (NASDAQ:PTON) in the quarter ending December 2021, worth $13.3 million. The fund dumped the shares entirely in Q1 2022.
UBS analyst Arpine Kocharyan on May 18 slashed the price target on Peloton Interactive, Inc. (NASDAQ:PTON) to $13 from $30 and maintained a Sell rating on the shares. The analyst projects lower than expected profitability in Q4, since the management is guiding negative margin under hardware business in Q4 due to lower pricing, surplus inventory, higher storage costs, and lack of fixed cost leverage due to falling demand forecast. The analyst is also cutting her forecasts for Peloton Interactive, Inc. (NASDAQ:PTON) sales and EBITDA in the outer years.
Insider Monkey’s fourth quarter database suggests that 60 hedge funds were bullish on Peloton Interactive, Inc. (NASDAQ:PTON), compared to 62 funds in the last quarter. In the first quarter of 2022, Philippe Laffont’s Coatue Management held a leading stake in the company, with 8.6 million shares worth $227.5 million.
Here is what Merion Road Capital has to say about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q1 2022 investor letter:
“Given what I have discussed so far you might be surprised that I built a new position in Peloton (“PTON”). PTON has had a rollercoaster ride in the public markets. Following their 2019 IPO at $29 the stock rocketed to over $160 at the peak of the covid hype, before tanking to its current price in the mid‐$20’s. The company has basically checked the box on any negative event you could think of. A few standouts include cutting guidance (May 2021, November 2021, January 2022), major strategic gaffes (overbuilding supply capacity, flip‐flopping on price cuts), and poor/misleading communication (raising capital 2 weeks after stating there was no need to raise capital). So why would I own this?
Peloton (the product, not the stock) has a strong brand name, value proposition, and customer loyalty. Despite their woes the company has built an established base of users that should be highly valued. The market is currently telling us that their 2.7mm users are worth $2,600 per subscriber, or just 7.5x subscription gross profit. Simplistically this assumes 1/7.5x = 13% annual attrition which is more draconian than current levels of ~10% (of course giving no credit for future growth)…” (Click here to see the full text)
4. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Uber Technologies, Inc. (NYSE:UBER) is an American company that operates a mobility-as-a-service platform, offering vehicles for hire, food delivery, package delivery, courier services, and freight transport. George Soros’ fund discarded in Q1 2022 the 529,297 Uber Technologies, Inc. (NYSE:UBER) shares it owned in Q4 2021, worth over $22 million.
Oppenheimer analyst Jason Helfstein lowered the price target on Uber Technologies, Inc. (NYSE:UBER) to $40 from $45 but kept an Outperform rating on the shares on May 5 as the company continues to make headway towards real profitability, with Q2 EBITDA guided 2% to 3% above Street consensus. As per the analyst, Uber Technologies, Inc. (NYSE:UBER)’s full suite of products offers the chance to target higher wallet share and cross-selling opportunities, in addition to creating a competitive advantage for driver acquisition. While management did not issue a full-year guidance for 2022, incremental Mobility/consolidated margins of +10%/+5% were reiterated, he told investors.
According to the database of elite funds maintained by Insider Monkey, Uber Technologies, Inc. (NYSE:UBER) was part of 153 public hedge fund portfolios at the end of Q4 2021, up from 143 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management owned a notable stake in Uber Technologies, Inc. (NYSE:UBER) in Q1 2022, with 23.7 million shares worth $849 million.
Here is what ClearBridge Large Cap Growth Strategy has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2021 investor letter:
“We have also been looking for multi-year secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber will also be a key player in the transition from internal combustion engines to EVs.”
3. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 96
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified health care company in the United States, offering managed healthcare, pharmacy benefits, and insurance services. George Soros’ fund held 19,818 shares of UnitedHealth Group Incorporated (NYSE:UNH) in Q4 2021, worth about $10 million. Soros Fund Management disposed of its stake in the first fiscal quarter of 2022.
On April 19, BMO Capital analyst Matt Borsch lifted the price target on UnitedHealth Group Incorporated (NYSE:UNH) to $600 from $510 and reiterated a Market Perform rating on the shares. The analyst cited UnitedHealth Group Incorporated (NYSE:UNH)’s “solid” Q1 results with robust Medicare Advantage penetration and the expansion of its value-based care initiative. He added that UnitedHealth Group Incorporated (NYSE:UNH) remains well positioned as healthcare outpaces GDP growth and managed care overrides government Medicare and Medicaid programs.
In Q4 2021, 96 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), with collective stakes worth $13.6 billion, compared to 95 funds in the earlier quarter, holding stakes in the company valued at $11.7 billion. Boykin Curry’s Eagle Capital Management held a leading position in UnitedHealth Group Incorporated (NYSE:UNH) in the first fiscal quarter of 2022, with 2.90 million shares worth $1.48 billion.
Here is what Baron Durable Advantage Fund has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2022 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and healthcare services arm, Optum, which offers care delivery and other services. Shares increased 1.8% on good fourth quarter results with revenues up 12.5% year-over-year, operating margins of 7.5% and EPS up 78% while also reaffirming its 2022 guidance. We believe UnitedHealth leads the healthcare industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
2. OneMain Holdings, Inc. (NYSE:OMF)
Number of Hedge Fund Holders: 44
OneMain Holdings, Inc. (NYSE:OMF) is an American financial services holding company that specializes in consumer finance and insurance. Soros Fund Management held 330,933 shares of OneMain Holdings, Inc. (NYSE:OMF) in the fourth quarter of 2021, worth $16.5 million. The hedge fund discarded its entire stake in Q1 2022.
On May 2, Citi analyst Arren Cyganovich lowered the price target on OneMain Holdings, Inc. (NYSE:OMF) to $54 from $72 and maintained a Buy rating on the shares. The company’s Q1 results reflect that the non-prime consumer demand remains robust, credit is normalizing but still lower than the long-term average, and OneMain Holdings, Inc. (NYSE:OMF)’s liquidity and funding should be solid while rates are soaring, the analyst told investors in a research note. However, with higher global macro risk and investor concern about a U.S. recession, the analyst slashed the price target.
According to Insider Monkey’s database, OneMain Holdings, Inc. (NYSE:OMF) was found in the public stock portfolios of 44 hedge funds at the end of Q4 2021, up from 41 funds in Q3. David Zorub’s Parsifal Capital Management owned a prominent stake in OneMain Holdings, Inc. (NYSE:OMF) in the first quarter of 2022, comprising 2.14 million shares worth $101.4 million.
Here is what ClearBridge Investments All Cap Value Strategy has to say about OneMain Holdings, Inc. (NYSE:OMF) in its Q4 2021 investor letter:
“Similar to the energy sector, the financials sector is also trading at very depressed multiples relative to the market. While the sector’s strong fundamentals received some recognition in 2021, it was rewarded with substantially lower valuations than it should have had. Despite earnings growing over 30% and exceeding the overall market’s, financial stock multiples stayed flat and are currently selling at a discount of roughly 9x forward earnings.
Consumer lender OneMain is an excellent representation of the divide between perception and reality. Similar to the market’s outlook on natural gas prices for EQT, the outlook for consumer credit metrics are worse than the current reality. It is inevitable that record-low delinquencies and loss rates will rise. However, the market’s perception of these headwinds to future earnings growth has been excessive. Higher loan losses are just one piece of a larger pie, and we believe that accelerating loan growth and associated operating leverage provides a buffer to allow OneMain to continue to compound earnings for the foreseeable future. Concerns about credit have completely overshadowed these positive drivers and have resulted in the stock trading at just 5x its projected cash earnings for 2022.”
1. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 92
Booking Holdings Inc. (NASDAQ:BKNG) is a Connecticut-based travel technology firm that offers online lodging reservations worldwide. In Q4 2021, George Soros’ hedge fund owned a $5.7 million stake in Booking Holdings Inc. (NASDAQ:BKNG), which it sold out of completely in the first fiscal quarter of 2022.
Piper Sandler analyst Thomas Champion on May 5 raised the price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2,500 from $2,440 and reiterated a Neutral rating on the shares. The company’s Q1 bookings exceeded Street estimates and management’s tone was optimistic about the recovery of travel and investments like Air and Connected Trip, the analyst told investors in a research note.
Among the hedge funds tracked by Insider Monkey, 92 funds were bullish on Booking Holdings Inc. (NASDAQ:BKNG) at the end of December 2021, compared to 96 funds in the last quarter. Harris Associates held a significant position in the company in Q1 2022, consisting of 665,415 shares valued at $1.5 billion.
Here is what ClearBridge Investments Large Cap Growth Strategy has to say about Booking Holdings Inc. (NASDAQ:BKNG) in its Q1 2022 investor letter:
“Other actions during the quarter included the sale of consumer name Booking Holdings (NASDAQ:BKNG). We sold Booking, the owner of online travel agencies Booking.com, Priceline and Kayak, due to its higher exposure to Europe where we believe a rebound in travel will be slowed by the spillover effects of the Ukraine invasion on consumer spending.”
You can also take a look at Top 9 Stocks Billionaire Larry Robbins Just Added to His Portfolio and 10 Favorite Stocks of Dan Loeb’s Third Point.
