In this article, we discuss the 5 stocks billionaire Ken Griffin is selling in 2022. You can see some more stocks sold by Citadel Investment Group in the first quarter of 2022 by clicking Billionaire Ken Griffin Is Selling These 10 Stocks In 2022.
5. Liberty Broadband Corporation (NASDAQ:LBRDA)
Number Of Hedge Fund Holders: 26
Liberty Broadband Corporation (NASDAQ:LBRDA) operates as a holding company, which engages in the cable, broadband and mobile location technology businesses. Operating in the telecommunications industry in the United States, it provides cable services to both residential and small to medium businesses through its fiber, hybrid fiber, and coaxial cable infrastructure.
This May, Deutsche Bank analyst Bryan Kraft lowered the price target on Liberty Broadband Corporation (NASDAQ:LBRDA) to $158 from $196 and maintained a Buy rating on the shares post the Q1 results. On May 6, Liberty Broadband Corporation (NASDAQ:LBRDA) reported a Q1 GAAP EPS of $1.77, beating analysts’ predictions by $0.28. The revenue of $238 million slipped 3.6% year-over-year, missing estimates by $8.84 million.
At the end of the first quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $606 million in Liberty Broadband Corporation (NASDAQ:LBRDA), up from 22 the preceding quarter worth $754.7 million. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Eagle Capital Management is a leading shareholder in Liberty Broadband Corporation (NASDAQ:LBRDA), with 8.36 million shares.
Here is what Alphyn Capital Management has to say about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q1 2022 investor letter:
“We part-financed the additions to Amazon and Wayfair by trimming some Liberty Broadband. Liberty Broadband is a HoldCo and tracking stock whose primary holding is Charter Communications. Charter benefits from its extensive network of cable assets that can provide higher bandwidth internet at better prices than offerings from traditional telecom and satellite carriers. Moreover, with excellent management and capital stewardship, Charter has increased its high-margin broadband subscriber base despite losing some video subscribers to “cord-cutting.”
Nevertheless, competition is intensifying, with telecom companies launching aggressive Fiber-To-The-Home upgrade plans and new entrants emerging with Fixed Wireless technologies. Cable’s coaxial lines are, for once, the inferior technology compared to FTTH. While Charter has many ways to upgrade its lines to remain competitive in the medium term, it no longer has a distinct advantage. As a result, in markets with fiber competition, cable companies typically have a 50% market share vs. the 80% market share they enjoy without fiber competition.
With Fixed Wireless, Cable has a strong advantage in owning the network for internet backhaul, but it is more difficult to predict the longer-term competitive environment. In both cases, moving from a near-monopoly to a duopoly, or longer-term an oligopoly, likely comes with weaker pricing power and slower subscriber growth. These considerations warranted trimming our Liberty Broadband position, and we will monitor developments closely.”
4. NCR Corporation (NYSE:NCR)
Number Of Hedge Fund Holders: 37
NCR Corporation (NYSE:NCR), previously known as National Cash Register, is an American software, consulting and technology company providing several professional services and electronic products.
Earlier this April, RBC Capital analyst Daniel Perlin lowered the price target on NCR Corporation (NYSE:NCR) to $44 from $54 but maintained an Outperform rating on the shares. In a research note to investors, Perlin states that the company’s Q1 results were “sharply below forecasts”, particularly as a result of disappointing hardware revenue and cost inflation. However, he believes that the stock can re-rate higher as it continues to pivot to higher growth recurring revenues.
NCR Corporation (NYSE:NCR) reported its Q1 results on April 26, posting earnings per share of $0.33, missing consensus estimates by $0.30. Additionally, the company’s revenue of $1.87 billion fell short of analysts’ predictions by $62.65 million.
According to Insider Monkey’s Q1 data, 36 hedge funds were bullish on NCR Corporation (NYSE:NCR), the same as the earlier quarter. Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Point72 Asset Management is a leading shareholder in NCR Corporation (NYSE:NCR), with 2.8 million shares worth more than $111 million.
3. Shell plc (NYSE:SHEL)
Number Of Hedge Fund Holders: 37
On June 9, Credit Suisse analyst Amy Wong initiated coverage of Shell Plc (NYSE:SHEL) with an Outperform rating and 3,000 GBp price target. Based on Wong’s remarks, Shell Plc (NYSE:SHEL)’s energy transition strategy stands out as the most progressive in terms of decarbonization and for generating strong cash flow that supports shareholder distributions in both the near and medium term.
At the end of the first quarter of 2022, 37 hedge funds in the database of Insider Monkey held stakes worth $5.6 billion in Shell plc (NYSE:SHEL), compared to 41 in the previous quarter worth $2.6 billion. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Shell plc (NYSE:SHEL), with 19.5 million shares worth more than $1 billion.
Here is what Harding Loevner International Equity Fund has to say about Shell plc (NYSE:SHEL) in its Q1 2022 investor letter:
“While risks of unforeseen consequences arising from the Ukraine conflict are high, on this front we are cautiously optimistic that China will work hard to maintain its neutrality in a credible way, as it is a huge beneficiary of trade with the rest of the world, especially the rich developed nations. We think it likely that China, along with India, will continue to buy oil and gas from Russia (just as Europe, at least for now, plans to keep its gas pipelines open), and do not expect that fact to alter China’s trade relations with the West much. Nevertheless, we must contemplate that our optimism is misplaced on the importance of membership in the global network of exchange. If our central and optimistic case—admittedly an educated guess—is wrong, then we’d need to greatly modify our views of which companies in our opportunity set will face new barriers to profitable growth, and which might stand to benefit, relatively, from a further receding of globalization. (Global trade, after all, has never matched the peak share of GDP it reached in 2008, before the Global Financial Crisis.) We’d expect such a world to be less efficient, as the cold logic of comparative advantage is demoted as a determinant of which goods or services are produced and where. That would lead to a less prosperous world, since exploiting comparative advantage is a cornerstone of wealth creation. If regional blocs began to raise limits on the movement of capital as well as goods, we’d need to parse which of our multi-national companies were at risk of declining sales from increasingly hostile, siloed countries. Royal Dutch Shell (NYSE:SHEL) has found its Siberian oil and gas joint venture assets stranded by the combination of sanctions and the public opprobrium of Russia’s actions.”
2. Paramount Global (NASDAQ:PARA)
Number Of Hedge Fund Holders: 40
Paramount Global (NASDAQ:PARA) operates as an American multinational mass media and entertainment conglomerate corporation that produces and distributes entertainment content through studios, networks, streaming services, live events, and merchandise.
On June 2, Wolfe Research analyst Peter Supino downgraded Paramount Global (NASDAQ:PARA) to Underperform from Outperform with a price target of $24, down from $49, as he assumed coverage of the stock. According to the analyst, Paramount Global (NASDAQ:PARA) was late to streaming with a broad-based DTC service, and is “playing catch-up” to gain share in an increasingly competitive landscape while its content is perceived as a tier below the top players.
On May 3, Paramount Global (NASDAQ:PARA) released its earnings report for the fiscal first quarter of 2022, with earnings per share of $0.60 surpassing market estimates by $0.08. On the other hand, revenue for the quarter fell short of estimates by $57.96 million.
At the end of the first quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in Paramount Global (NASDAQ:PARA), compared to 64 in the previous quarter worth $1 billion. Michael Weinstock’s Monarch Alternative Capital is one of the leading stakeholders in Paramount Global (NASDAQ:PARA), with over 12.2 million stakes worth approximately $133 million.
1. Kohl’s Corporation (NYSE:KSS)
Number Of Hedge Fund Holders: 42
Kohl’s Corporation (NYSE:KSS) operates as the largest department store chain in the United States, with 1,162 locations in almost every state. The company offers branded apparel, footwear, accessories, beauty, and home products through its stores and website.
Of late, Kohl’s Corporation (NYSE:KSS) is involved in exclusive sales talks with the Franchise Group Inc. According to the details provided, the owner of the Vitamin Shoppe and other distinct brands has offered to buy the Wisconsin-based department store chain for $60 per share. However, the final transaction will have to be approved by the board of directors of both companies.
Earlier this May, Citi analyst Paul Lejuez cut estimates for several companies and downgraded several retail stocks, including Kohl’s Corporation (NYSE:KSS) which was downgraded to Neutral from Buy, with a price target of $39, down from $55. The analyst states that a lack of stimulus and the burden of higher food and fuel prices are squeezing several lower income consumers, leading to a pullback in discretionary categories like apparel and home. He adds that retailers are facing higher costs, which will now be harder to pass on to consumers.
Out of all the hedge funds tracked by Insider Monkey, 42 held positions in Kohl’s Corporation (NYSE:KSS) with a combined value of $789.3 million. This is compared to 34 hedge funds in the preceding quarter, with $707 million worth of stakes. Jeffrey Smith’s Starboard Value LP is a notable investor in Kohl’s Corporation (NYSE:KSS), and ranks as its biggest shareholder with 3.3 million shares valued at $201.4 million.
You can also take a look at 10 Stocks Warren Buffett is Selling and 10 Best Stocks to Buy According to Billionaire Mario Gabelli.
