This article presents an overview of Hedge Funds and Insiders Are Buying These 5 Stocks. For a detailed overview of such stocks, read our article, Hedge Funds and Insiders Are Buying These 10 Stocks.
5. First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA)
Number of Hedge Fund Investors: 54
Hope Bryant Holding, with Vice Chairwoman status at First Citizens BancShares Inc (Delaware) Class A’s (NASDAQ:FCNCA) board, bought 766 shares of First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA) at $1,314.97 per share on February 20. Since then through March 21 the stock has gained about 6.29%.
As of the end of the fourth quarter of 2023, 54 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA). The most notable stake in First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA) is owned by Natixis Global Asset Management’s Harris Associates which owns a $711 million stake in First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA).
Gator Capital Management made the following comment about First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q3 2023 investor letter:
“The Fund’s largest position is First Citizens BancShares, Inc. (NASDAQ:FCNCA) (“First Citizens” or “FCNCA”). We acquired our stake over the past three years. Initially, we owned and traded around a small position in CIT Group Inc. (“CIT”) during the summer of 2020. We felt CIT was undervalued and management was making progress in reducing risk during the Covid-19 pandemic. In late 2020, CIT agreed to be acquired by First Citizens. We added to our CIT stake the morning of the acquisition announcement because we thought the acquisition was so financially attractive that First Citizens’ shares would rally and pull CIT’s shares higher. Our CIT shares were exchanged for First Citizens shares when the merger completed. We held onto our First Citizens shares because we admired the management team, we felt the bank was undervalued, and we projected the bank would benefit from higher interest rates. Then, earlier this year, First Citizens was the winning bidder in the FDIC’s auction of the failed Silicon Valley Bank (“SVB”). We added significantly to the Fund’s First Citizens position on the following Monday morning because the deal was unbelievably favorable for First Citizens.
First Citizens’s stock price rose more than 50% that day and has risen another 40% in the months since the SVB acquisition. We have not sold any shares. We believe the stock still has the potential to double over the next three years. Despite this attractive upside, we think the downside is minimal. Our downside scenario is an unchanged stock price in three years…” (Click here to read the full text)
4. Illumina Inc (NASDAQ:ILMN)
Number of Hedge Fund Investors: 58
Illumina Inc (NASDAQ:ILMN) ranks fourth in our list of the stocks being bought by corporate insiders as well as hedge funds. Illumina Inc (NASDAQ:ILMN) CEO Jacob Thaysen on February 22 bought 7,330 shares of Illumina Inc (NASDAQ:ILMN) at $135.29 per share. Since then the stock has gained about 4%.
A total of 58 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Illumina Inc (NASDAQ:ILMN).
Baron Opportunity Fund stated the following regarding Illumina, Inc. (NASDAQ:ILMN) in its fourth quarter 2023 investor letter:
“Illumina, Inc. (NASDAQ:ILMN) has been the leading provider of DNA sequencing platforms. The stock declined due to weak financial results, management turnover, and uncertainty about the outcome of the acquisition of Grail, which regulators have challenged on antitrust grounds and in the meantime has been burning cash flow and hampering Illumina’s consolidated performance. We exited our Illumina position during the quarter but will continue our research and analysis regarding the adoption of Illumina’s new sequencing instruments, management’s plan to divest Grail, the evolving DNA-sequencing competitive environment, and the new company management team.”
3. Caesars Entertainment Inc (NASDAQ:CZR)
Number of Hedge Fund Investors: 65
Entertainment giant Caesars Entertainment Inc (NASDAQ:CZR) is one of the notable stocks with recent insider purchases as well as a positive hedge fund sentiment.
On March 6, Michael Pegram, a director at Caesars Entertainment Inc’s (NASDAQ:CZR) board, loaded up on 15,000 shares of Caesars Entertainment Inc (NASDAQ:CZR) at $41.45 per share. Since then the stock has gained about 3.92%.
Baron Real Estate Fund stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its fourth quarter 2023 investor letter:
“In the most recent quarter, we acquired additional shares in Caesars Entertainment, Inc. (NASDAQ:CZR), the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. We are big fans of CEO Tom Reeg and remain optimistic about the long-term prospects for the company.
The company operates primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. The company generates approximately 50% of its cash flow from Las Vegas and 50% from regional destination markets. The company owns approximately half of its real estate and leases the other half from gaming REIT companies – Gaming and Leisure Properties, Inc. and VICI Properties Inc…” (Click here to read the full article)
2. Snowflake Inc (NYSE:SNOW)
Number of Hedge Fund Investors: 86
Mark D. McLaughlin, who joined Snowflake Inc’s (NYSE:SNOW) board of directors in April last year, bought 3,030 shares of Snowflake Inc (NYSE:SNOW) at $165.45 per share on March 6. There has been almost no change in the stock price since then.
As of the end of the last quarter of 2023, 86 hedge funds had stakes in Snowflake Inc (NYSE:SNOW).
1. Humana Inc (NYSE:HUM)
Number of Hedge Fund Investors: 86
Jorge S. Mesquita, a director at health insurance giant Humana Inc’s (NYSE:HUM) board, bought 545 shares of Humana Inc (NYSE:HUM) at $367.09 per share on February 20. Since then through March 21 the stock has lost about 5.15%.
As of the end of the fourth quarter of last year, 86 hedge funds tracked by Insider Monkey had stakes in Humana Inc (NYSE:HUM).
Diamond Hill Select Strategy stated the following regarding Humana Inc. (NYSE:HUM) in its fourth quarter 2023 investor letter:
“Only one stock detracted from performance in Q4 — health insurance company Humana Inc. (NYSE:HUM). The company faces growing concerns about heightened medical utilization, which would pressure health insurers’ medical loss ratios. Given heightened utilization among the Medicare Advantage population, there is some uncertainty among investors as to whether Humana’s rate bids for 2024 will prove adequate to cover increased costs. However, we maintain our conviction in Humana’s position as a leading insurer catering to the senior population with the opportunity to increase penetration of Medicare Advantage enrollment within the broader Medicare-eligible population.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 11 Best March Dividend Stocks To Buy and the Centi-Billionaire Bill Gates’ Top 15 Dividend Stocks.
