Billionaire Mario Gabelli is Dumping These 5 Stocks in 2022

4. Shell Plc (NYSE:SHEL)

Number Of Hedge Fund Holders: 37

Shell Plc (NYSE:SHEL) is a British multinational oil and gas company that was formed in 1907 through the merger of Royal Dutch Petroleum Company of the Netherlands and The “Shell” Transport and Trading Company of the United Kingdom. Operating in more than 70 countries, the company stands as a dominant player in the oil and gas market.

Although GAMCO Investors removed its position in Shell Plc (NYSE:SHEL) during the first quarter of 2022, things are looking bright for the company. 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. According to Wong, 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 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 GMO LLC has to say about Shell plc (NYSE:SHEL) in its Q1 2022 investor letter:

“The market is simply not valuing resource companies at reasonable levels given any plausible base case for how the world might play out, in our opinion. With oil prices up around 65% and natural gas prices up hundreds of percent since the beginning of 2020, Shell (NYSE:SHEL), a bellwether for the oil and gas industry, is more or less flat. With the movement in oil and gas prices, one would have expected Shell’s stock price to surge. It didn’t, however, leaving Shell at very attractive valuation levels. At commodity prices as of the end of the first quarter, Shell would be cranking out free cash flow yields of 22-23% for the next few years according to our models.”