Billionaire Tom Sandell is Buying These 5 Stocks

4. Microsoft Corporation (NASDAQ:MSFT)

Sandell Asset Management’s Stake Value: $13,102,000 

Percentage of Sandell Asset Management’s 13F Portfolio: 7.33%

Microsoft Corporation (NASDAQ:MSFT) is a Richmond, Washington-based tech giant that designs, produces, and sells computer software, consumer electronics like smartphones and gaming consoles, personal computers, and related services. Microsoft Corporation (NASDAQ:MSFT) is also home to professional networking site LinkedIn and video and instant messaging software Skype.

In a note issued to investors on November 16, Phil Winslow at Credit Suisse issued an Outperform rating with a $400 target price on Microsoft Corporation (NASDAQ:MSFT) stock. The analyst anticipates Microsoft Corporation’s (NASDAQ:MSFT) top line to expand by mid-to-high teens for at least the next five years. The top-line growth is expected to translate into more than high-teens to 20% EPS and cash flow per share growth during the same period on the back of margin expansion and fewer outstanding shares.

In its Q3 2021 investor letter, Polen Capital discussed its stance on Microsoft Corporation (NASDAQ:MSFT). Here’s what the fund said:

“After modest Portfolio activity during the second quarter of 2021, activity increased during the third quarter. We would broadly characterize the various trades into two objectives: 1) managing risk, and 2) managing valuation. In both cases, we aimed to maintain the Portfolio’s growth profile. In aggregate, we believe we were able to increase expected earnings growth while reducing risk and the overall portfolio valuation… We also trimmed Microsoft, which had grown to nearly 10% of the Portfolio. At an 8% weighting, it still represents one of our largest positions.”