In this article, we discuss 5 stocks that billionaire Rob Citrone is selling. If you want to see more stocks on this list, check out Billionaire Rob Citrone Is Selling These 10 Stocks.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 83
Advanced Micro Devices, Inc. (NASDAQ:AMD) was incorporated in 1969 and is headquartered in Santa Clara, California, operating as a semiconductor company worldwide. The company operates in two segments – Computing and Graphics, and Enterprise, Embedded and Semi-Custom. In the fourth quarter of 2021, Rob Citrone’s hedge fund held 15,300 shares of the company worth $2.20 million. The billionaire disposed of his stake in the first quarter of 2022.
On July 20, Deutsche Bank analyst Ross Seymore lowered the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $85 from $115 and kept a Hold rating on the shares. The current “purgatory” stage of the semiconductor cycle continues heading into the Q2 earnings season, the analyst told investors. Despite forecasting optimistic fundamental strength across most of the sector in Q2 and Q3, the analyst said investors seem to be waiting for a “widespread deck-clearing” guide-down before getting back into semiconductor plays.
According to Insider Monkey’s data, 83 hedge funds were long Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of Q1 2022, up from 69 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with 24.3 million shares worth $2.6 billion.
Here is what Carillon Tower Advisers has to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
4. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 99
Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services company. Rob Citrone’s Discovery Capital Management held 224,300 shares of the firm worth $10 million in the fourth quarter of 2021, representing 0.74% of the total 13F portfolio. The hedge fund dumped the entirety of its Bank of America Corporation (NYSE:BAC) position in Q1 2022.
On July 19, RBC Capital analyst Gerard Cassidy lowered the price target on Bank of America Corporation (NYSE:BAC) to $40 from $45 but kept an Outperform rating on the shares after its Q2 results. Bank of America Corporation (NYSE:BAC)’s diversified business model allows it to navigate uncertain macro times, the analyst told investors. However, the analyst added that the solid net interest revenue growth for Bank of America Corporation (NYSE:BAC) was partly negated by softer investment banking results.
According to Insider Monkey’s data, Bank of America Corporation (NYSE:BAC) was part of 99 hedge fund portfolios at the end of Q1 2022, up from 84 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with more than 1 billion shares worth $41.6 billion.
Here is what Aristotle Capital Management Global Equity has to say about Bank of America Corporation (NYSE:BAC) in its Q1 2022 investor letter:
“We first invested in Bank of America during the second quarter of 2013. During our near decade as investors, Bank of America closed the chapter on the legacy issues from acquired Countrywide, including mortgage write-downs and substantial legal charges. In addition, it successfully turned the Merrill Lynch franchise into one of the leading U.S. brokerage and advisory firms. Thanks to what we consider to be a strong management team led by CEO Brian Moynihan, the bank went through years of simplification, improved its cost structure and efficiency ratio, and reduced risk. While we believe Bank of America remains a much-improved market leader, we decided to exit our position and use the proceeds to invest in Brookfield Asset Management.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA) is a California-based semiconductor company. Rob Citrone’s hedge fund owned 10,105 shares of NVIDIA Corporation (NASDAQ:NVDA), worth about $3 million in the fourth quarter of 2021. Discovery Capital Management discarded its stake completely in the first quarter of 2022.
On July 25, Barclays analyst Blayne Curtis lowered the firm’s price target on NVIDIA Corporation (NASDAQ:NVDA) to $200 from $295 and kept an Overweight rating on the shares. The latest semiconductor rally should fade as it is “way too early to buy the dip,” the analyst told investors. The analyst believes semis are still in for a “substantial reset” and he slashed wafer fab equipment estimates.
Among the hedge funds tracked by Insider Monkey, 102 funds were long NVIDIA Corporation (NASDAQ:NVDA) as of the first quarter of 2022, down from 110 funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is one of the leading position holders in the company, with 2.5 million shares worth about $694.5 million.
Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
2. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 109
Netflix, Inc. (NASDAQ:NFLX) provides media and entertainment services. Rob Citrone’s Discovery Capital Management held 28,495 shares of Netflix, Inc. (NASDAQ:NFLX) in Q4 2021, worth over $17 million, representing 1.28% of the portfolio. The hedge fund discarded its position in Netflix, Inc. (NASDAQ:NFLX) in the March quarter.
Evercore ISI analyst Mark Mahaney thinks Netflix, Inc. (NASDAQ:NFLX) is “a great company and a great service” whose management has shown “extraordinary industry vision and the ability to pivot successfully”. However, growth has slowed significantly and he thinks the market will need to see “real success” from the ad-supported and password-sharing initiatives before attributing a higher premium multiple to the stock. He reiterated an In Line rating and a $245 price target on Netflix, Inc. (NASDAQ:NFLX) shares on July 20.
According to Insider Monkey’s data, 109 hedge funds were bullish on Netflix, Inc. (NASDAQ:NFLX) at the end of March, down from 113 funds in the prior quarter. Bill Ackman’s Pershing Square is a prominent stakeholder of the company, with 3.10 million shares worth $1.16 billion.
Here is what Oakmark Fund has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q2 2022 investor letter:
“Netflix‘s stock price was down considerably after providing a weaker than expected outlook for both subscriber growth and profit margins. After meeting with management and scrutinizing our investment thesis, we lowered our estimate of business value to account for the company’s softer near-term guidance. However, we believe the decline in the company’s share price more than adjusts for this. Indeed, Netflix now trades for a discount to the S&P 500 Index on next year’s GAAP earnings despite our view that the company remains a much better than average business run by a highly accomplished management team. We believe the company’s lead in streaming remains intact and we expect terminal operating margins to be substantially higher than they are today. Furthermore, we are encouraged by Netflix’s potential to enhance revenue growth through advertising, the monetization of password sharing and further penetrating international markets.”
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
JPMorgan Chase & Co. (NYSE:JPM) is a New York-based multinational investment bank and financial services holding company. Rob Citrone’s Discovery Capital Management held 86,300 shares of JPMorgan Chase & Co. (NYSE:JPM) in the fourth quarter of 2021, worth $13.6 million. The hedge fund disposed of its stake in the first quarter of 2022.
On July 20, Berenberg analyst Peter Richardson upgraded JPMorgan Chase & Co. (NYSE:JPM) to Hold from Sell with an unchanged price target of $120. As per the analyst, JPMorgan Chase & Co. (NYSE:JPM) is operating in a tough environment but the stock is now trading at a 20% discount to its long-run average. Given that headwinds are temporary, the downside risks to JPMorgan Chase & Co. (NYSE:JPM)’s share price is now more limited, said the analyst.
Among the hedge funds tracked by Insider Monkey, 110 funds were long JPMorgan Chase & Co. (NYSE:JPM) at the end of March 2022, up from 107 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 7.76 million shares worth $1.05 billion.
Here is what Carillon Eagle Growth & Income Fund has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2022 investor letter:
“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase (NYSE:JPM) detracted from performance due to the company’s increased expense guidance, announced in January.”
You can also take a look at 6 Favorite Stock Picks of Munir Javeri’s 3G Sahana Capital Management and Top 10 Stock Picks of Billionaire Daniel Sundheim’s D1 Capital Partners.
