In this article, we take a look at the 10 popular stocks billionaire James Dinan is selling in Q3.
James Dinan, who oversees York Capital Management, holds a degree in economics from the University of Pennsylvania and an MBA from Harvard Business School. His work prior to founding York Capital Management revolved around investment banking and merger arbitrage. He founded York Capital Management in 1991 with an investment of $3.6 million. The hedge fund has since grown by leaps and bounds with a current portfolio value of $947 million.
The investment strategy employed at York Capital Management is data-driven with emphasis on embracing the bottom-up complexity of information and local knowledge of the global market. York Capital Management had earned a good reputation in its early years with a 34% return after two years of its inception. The major chunk of the hedge fund’s portfolio has investments in the technology sector.
James Dinan has sold several stocks in the third quarter of 2021. Three of the most prominent companies whose stocks he sold in Q3’2021 are Meta Platforms, Inc. (NASDAQ:FB), Mastercard Incorporated (NYSE:MA), and Visa Inc. (NYSE:V).
Apart from these three companies’ stocks, there are seven other famous companies whose stocks York Capital Management held in Q2 and sold in Q3. All of these have been listed below.
Our Methodology
We picked these stocks based on the Q3 portfolio of James Dinan. His hedge fund sold its stakes in these companies in the September quarter.
10. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 58
McDonald’s Corporation (NYSE:MCD) is an American fast-food company operating worldwide with over 36,000 branches in over 100 countries. It was founded in 1940 in California and is presently headquartered in Chicago, Illinois. York Capital Management has sold the stake it held in the fast-food company in the third quarter. In the second quarter, the hedge fund held 10,386 shares in McDonald’s.
On December 15, Barclays analyst Brian Mullan increased the price target on McDonald’s Corporation to $300 from $298 and kept an ‘Overweight’ rating on the shares. The analyst anticipates “more tailwinds than headwinds” in 2022 for the restaurant industry.
The revenue McDonald’s Corporation posted in Q3 doesn’t project a negative sentiment. At $6.20 billion, the revenue beat analyst estimates by $158.29 million. The revenue is up from $5.89 billion in Q2.
McDonald’s Corporation is a prominent company apart from Meta Platforms, Inc., Mastercard Incorporated, and Visa Inc. in which York Capital Management was invested in the second quarter of 2021 but sold the stake in the third quarter. However, 58 hedge funds remain invested in McDonald’s in the third quarter.
9. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 63
Union Pacific Corporation (NYSE:UNP) is a leading transportation company in the US. It operates over 8000 locomotives across 23 US states through its principal operating arm, Union Pacific Railroad. Union Pacific Corporation is headquartered in Nebraska, US, and was founded in 1862, making the company one of the oldest in the United States. York Capital Management held nearly 11000 shares in the company in the second quarter of 2021 which it sold in the third quarter.
On December 10, Union Pacific Corporation announced that its board of directors voted in favor of increasing the quarterly dividend on its common shares by ten percent to $1.18 per share. The dividend is payable on December 30, 2021, to stakeholders of record on December 20, 2021. Union Pacific Corporation filed a Q3 revenue of $5.57 billion beating analyst estimates by $175 million. Its revenue in Q2 was $5.50 billion. The EPS was $2.57 that beat analyst estimates by $0.07.
8. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 143
Visa Inc. is one of the two most popular global payment processors, the other one being Mastercard Incorporated.
York Capital Management sold the stake it held in the company in the third quarter. In the second quarter, the hedge fund held 10,643 shares in the company. However, 143 hedge funds still remain invested in the company as of the Q3’21, the leading one of them being TCI Fund Management.
On November 17, UBS analyst Rayna Kumar assumed coverage of Visa Inc. with a ‘Buy’ rating on the shares with a price target of $275. The analyst stated that Visa Inc. trades at a good enough valuation.
7. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 248
Meta Platforms, Inc. as discussed earlier is the leading social networking giant comprising Facebook, Instagram, and WhatsApp with over 3 billion users across the world. York Capital Management held 8,949 shares in the company in the second quarter of 2021. These have been sold in the third quarter.
On December 14, Helbiz announced its plans for collaboration with Meta Platforms, Inc. Workplace platform. Helbiz has decided to integrate Workplace from Meta Platforms, Inc. to allow its company’s workers to interact and communicate efficiently through virtual groups, chat, and conference rooms.
6. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 146
Mastercard Incorporated is the second most popular payment processor behind Visa. The company processes digital payments and enables transactions between the merchant’s and customer’s banks. York Capital Management held 9,384 shares in the company in the second quarter which were sold in the third quarter of 2021. The Q3 revenue of Mastercard Incorporated stood at $4.99 billion and surpassed analyst estimates by $35.79 million. Its EPS on the other hand was at $2.37 that also beat analyst estimates by $0.18.
On November 24, Mastercard Incorporated announced it has completed the acquisition of Arcus FI, an alum of the corporation’s Start-Path program intended to boost the delivery of bill pay solutions as well as other real-time payment applications in Central and South America.
Mastercard Incorporated is one of the three most prominent companies in the list apart from Visa Inc. and Meta Platform, Inc. whose shares York Capital Management held in the second quarter but sold in the third quarter.
5. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 65
Morgan Stanley is an American multinational finance company headquartered in New York. Morgan Stanley (NYSE:MS) provides various services like wealth management, stock brokerage, financial advice, asset management, corporate lending, and capital raising. York Capital Management held 44,348 shares in Morgan Stanley in the second quarter of 2021 which were sold in the following quarter.
Morgan Stanley’s revenue in the third quarter stood at $14.75 billion beating analyst estimates by a huge margin of $799.47 million. The company’s growth until 2019 was somewhat unremarkable but it has seen a huge jump in growth since the year 2020. Its Growth Profit Margin stands at 89.21%. On December 3, Citi analyst Keith Horowitz upgraded Morgan Stanley to Buy from ‘Neutral’ and set the price target at $115, up from $105. The analyst is “very constructive” on bank stocks.
4. The TJX Companies, Inc. (NYSE:TJX)
Number of Hedge Fund Holders: 63
The TJX Companies, Inc. (NYSE:TJX) is an American discount-retail departmental store corporation based in Massachusetts. York Capital Management held 60,803 shares in the company in the second quarter that were sold in the following quarter. The revenue of The TJX Companies, Inc. in Q3’21 was $12.53 billion, beating analyst estimates by $262 million.
On December 15, Truist analyst Beth Reed initiated coverage of The TJX Companies, Inc. with a ‘Buy’ rating and a price target of $92. The analyst sees The TJX Companies, Inc. as “the biggest player in one of the most attractive sectors in retail,” and opines that it is “well-positioned to benefit from secular tailwinds behind the off-price channel and a 30%+ store expansion opportunity.”
3. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 59
The Charles Schwab Corporation (NYSE:SCHW) is a major US financial company headquartered in Texas. The company provides various services like banking, investment, asset management, wealth management, and financial advice. York Capital Management held 65,486 shares in the company in the second quarter that were sold in the third quarter of 2021.
On December 16, BofA analyst Craig Slegenthaler initiated coverage of The Charles Schwab Corporation with a ‘Buy’ rating on the shares and a price target of $97. The company beat analyst estimates by $47.10 million after filing a Q3 revenue of $4.57 billion.
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Intel Corporation (NASDAQ:INTC) is a leading manufacturer and distributor of computer microprocessors, motherboards, and other computational semiconductor chipsets.
On December 6, Intel Corporation announced its intent to take Mobileye public in the US in the middle of next year. The company was quoted that the decision is expected to unlock the value of Mobileye for the stakeholders of Intel Corporation by creating a separate publicly-traded company with IPO and will build on Mobileye’s “successful” track record.
1. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 66
JD.com, Inc. (NASDAQ:JD) is a major e-commerce company headquartered in Beijing, China. It was formerly known as 360Buy. York Capital Management held over 6,80,000 shares in the company in the second quarter, but sold all these shares in the third quarter.
The company beat analyst estimates in Q3 by a huge margin of $709.6 million with a revenue of over $34 billion in the third quarter.
You can also take a peek at 10 Cheap Semiconductor Stocks to Invest in Today and Michael Burry is Selling These 15 Stocks.
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This article is originally published at Insider Monkey.
