This article presents an overview of Billionaire Investor Stan Druckenmiller and Insiders Are Piling Into These 5 Stocks. For a detailed overview of such stocks, read our article, Billionaire Investor Stan Druckenmiller and Insiders Are Piling Into These 11 Stocks.
5. Woodward, Inc.Common Stock (NASDAQ:WWD)
Billionaire Stanley Druckenmiller’s Stake: $55,083,000
Woodward, Inc. Common Stock (NASDAQ:WWD) makes control systems for aircraft and industrial engines. Billionaire Stanley Druckenmiller initiated a new stake in Woodward, Inc. Common Stock (NASDAQ:WWD) during the fourth quarter of 2023, buying over 404,000 shares of Woodward, Inc.Common Stock (NASDAQ:WWD) worth over $55 million.
Rajeev Bhalla, member of Woodward, Inc.Common Stock’s (NASDAQ:WWD) board of directors, on August 24, 2023, bought 399 shares of Woodward, Inc.Common Stock (NASDAQ:WWD) at $125.07 per share. Since then the stock has gained about 20%.
4. Lamb Weston Holdings Inc. (NYSE:LW)
Billionaire Stanley Druckenmiller’s Stake: $58,283,000
William Jurgensen, a notable member of Lamb Weston Holdings Inc.’s (NYSE:LW) board of directors, snapped up 3,000 shares of Lamb Weston Holdings Inc. (NYSE:LW) on October 16, 2023, for $84.35 per share. Since then through March 25 the stock is up by about 22%.
The London Company SMID Cap Strategy made the following comment about Lamb Weston Holdings, Inc. (NYSE:LW) in its Q3 2023 investor letter:
“Lamb Weston Holdings, Inc. (NYSE:LW) – LW underperformed after the company reported lower volumes and provided a cautious outlook. This sparked fears the industry could have too much capacity as volumes slow. However, management has been clear the majority of the lower volume for LW has been intentional by shedding lower margin contracts. On a positive note, the fry attachment rate remained high. We remain attracted to LW’s market share, pricing power, and industry tailwinds.”
3. KBR Inc. (NYSE:KBR)
Billionaire Stanley Druckenmiller’s Stake: $64,194,000
Texas-based engineering solutions company KBR Inc. (NYSE:KBR) ranks third in our list of the top stocks in Stanley Druckemiller’s portfolio that are seeing insider buying activity.
Mark Sopp, a board member at KBR Inc. (NYSE:KBR), bought 5,000 shares of KBR Inc. (NYSE:KBR) at $51.53 on November 8. Since then the stock is up 18%.
2. Vistra Corp. (NYSE:VST)
Billionaire Stanley Druckenmiller’s Stake: $91,873,000
Retail electricity and power generation company Vistra Corp. (NYSE:VST) saw insider buying activity in June last year when Julie Lagacy, a board member, piled into 10,000 shares of Vistra Corp. (NYSE:VST) at $24.84 per share. The transaction took place on June 21. The stock has performed exceptionally well since then, gaining 175% in value.
Stanley Druckenmiller owns a $92 million stake in Vistra Corp. (NYSE:VST) as of the end of 2023.
Sound Shore Management made the following regarding Vistra Corp. (NYSE:VST) in its fourth quarter 2023 investor letter:
“For the year, we had a number of stocks up 50% or more and the list includes a diverse set of industries such as homebuilding, heavy truck manufacturing, and semiconductor capital equipment. We would like to highlight one outstanding contributor for the year, electricity generator and marketer Vistra Corp. (NYSE:VST), a low-cost provider with a healthy balance between generation and retail. Demand for electricity is growing and notably, load peaks are changing as well. As the country brings on more renewables and adjusts to greater demand later in the day due to increased use of electric heat pumps and electric car charging, reliable clean power is at a premium. Vistra is well positioned with diversified fuel sources including solar, natural gas, coal, nuclear and battery power storage facilities, along with a marketing division to manage price volatility. The company will soon be closing its accretive acquisition of merchant power generator, Energy Harbor, and the deal will make Vistra the second largest carbon free, nuclear electricity provider behind Constellation Energy, another portfolio holding. Vistra CEO Jim Burke, leads a veteran utility management team that is committed to transitioning the company’s portfolio to a sustainable footprint by closing older fossil fuel plants and increasing the renewables portfolio. They have also been an important voice to advocate for changes that will accelerate the global transition to a clean, renewable energy future, while maintaining adequate near-term supply. Vistra has a strong balance sheet that allows the company to invest in innovation and operational improvements. Additionally, management is using excess cash flow to buy 40% of the outstanding shares over a five year period and they are more than half way through that process. Currently valued at 9 times earnings with a 17% free cash flow yield and a 2.3% dividend, the stock remains a full position. As you can see from the chart below, Vistra’s performance was quite different than many other electricity providers and provides further evidence of the disparate performance that can often be found within a sector.”
1. Vertiv Holdings Co (NYSE:VRT)
Billionaire Stanley Druckenmiller’s Stake: $111,117,000
Vertiv Holdings Co (NYSE:VRT) provides infrastructure for data centers. The stock has gained about 80% year to date through March 25. Stanley Druckenmiller’s hedge fund owns a $111 million stake in Vertiv Holdings Co (NYSE:VRT). Chief Technology Officer and Executive Vice President of Vertiv Holdings Co (NYSE:VRT), Stephen Liang snapped up 35,001 shares of Vertiv Holdings Co (NYSE:VRT) on June 9, 2023, at $21.18 per share. Since then the stock has gained about 289%. The stock is in the limelight because of the AI revolution that is boosting the demand for data center-related products and services.
ClearBridge SMID Cap Growth Strategy stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its fourth quarter 2023 investor letter:
“Within IT, AI trends continue to positively impact order trends at data center and technology hardware companies to the benefit of companies like Monolithic Power Systems, our top-performing holding during the quarter. Enthusiasm supplying power management for Nvidia’s AI GPUs supported both strong 2023 performance and a robust future outlook. This strong demand also translated into positive performance for industrials holding Vertiv Holdings Co (NYSE:VRT), a leader in power and thermal management and related tools and systems used by data centers. However, we continue to monitor the sustainability of such trends, as well as their valuations, on a case-by-case basis. As a result, we trimmed the position size of both of these investments, following strong stock performance.”
Should you invest $1,000 in Vertiv right now?
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