Jeremy Grantham’s 5 Favorite Stocks

4. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Holders: 43

Jeremy Grantham’s Stake Value: $441.19 Million

U.S. Bancorp (NYSE:USB) is an American bank holding company for the U.S. Bank National Association, which is one of the largest banking institutions in the United States. Jeremy Grantham owns 9.59 million shares of U.S. Bancorp (NYSE:USB) as of Q2 2022, worth $441.19 million, representing 2.3% of his total 13F portfolio. The stock features among Grantham’s top 5 holdings and is one of his favorite plays. He has held a stake in U.S. Bancorp (NYSE:USB) since Q1 2013. 

On July 12, Citi analyst Keith Horowitz lowered the price target on U.S. Bancorp (NYSE:USB) to $50 from $53 and kept a Neutral rating on the shares. The analyst updated U.S. bank models ahead of Q2 earnings and slashed price targets to factor in the losses from the latest Federal Reserve stress test, which he sees as a “conservative measure of inherent risk on bank balance sheets”.

According to Insider Monkey’s data, 43 hedge funds reported owning stakes in U.S. Bancorp (NYSE:USB) at the end of Q2 2022, compared to 40 funds in the last quarter. Warren Buffett’s Berkshire Hathaway held the largest position in the company, comprising approximately 120 million shares worth $5.5 billion. 

Here is what ClearBridge Investments Dividend Strategy has to say about U.S. Bancorp (NYSE:USB) in its Q4 2021 investor letter:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We have increased our exposure to interest-rate sensitive banks by adding to existing positions in U.S. Bancorp.”