Goldman Sachs Stock Portfolio: Top 5 Large-Cap Stock Picks

In this article, we discuss the top 5 large-cap stock picks of Goldman Sachs. If you want to see more stocks in this selection, check out Goldman Sachs Stock Portfolio: Top 10 Large-Cap Stock Picks. 

5. Splunk Inc. (NASDAQ:SPLK)

Number of Hedge Fund Holders: 47

Splunk Inc. (NASDAQ:SPLK) is a California-based company that offers software for searching, monitoring, and analyzing machine-generated data. According to investment advisory Needham, Splunk Inc. (NASDAQ:SPLK) may be worth about $120 per share in a possible acquisition, whereas client expectations for a Splunk takeout are around $110-$130 per share. In February 2022, Cisco Systems, Inc. (NASDAQ:CSCO) made a more than $20 billion buyout offer for Splunk. 

Securities filings for the second quarter of 2022 reveal that the Goldman Sachs stock portfolio had more than 43 million shares of Splunk Inc. (NASDAQ:SPLK), worth $4 billion and representing 0.91% of the total 13F holdings. 

On November 2, BTIG analyst Gray Powell maintained a Buy rating on Splunk Inc. (NASDAQ:SPLK) but slashed the price target on the stock to $105 from $132 as part of a broader research note on Security & Infrastructure Software. The analyst noted that while Splunk Inc. (NASDAQ:SPLK)’s security/SIEM side of the business appears relatively stable, he is seeing some signs of pricing constraints on contract renewals.

According to Insider Monkey’s data, 47 hedge funds were bullish on Splunk Inc. (NASDAQ:SPLK) at the end of June 2022, compared to 42 funds in the prior quarter. Alex Sacerdote’s Whale Rock Capital Management held the leading position in the company, comprising 2.7 million shares worth $243 million. 

Here is what Carillon Tower Advisers specifically said about Splunk Inc. (NASDAQ:SPLK) in its Q2 2022 investor letter:

“Splunk Inc. (NASDAQ:SPLK), a leader in artificial intelligence solutions for corporate data logs and security, fell in a weak tech group. The company has been transitioning to more of a software-as-a service (SaaS) business model that has, we believe, temporarily depressed earnings and cash flow. We like Splunk’s leadership position in the industry and the company has installed a new CEO and is rolling out new features and products.”