In this article, we discuss the 5 stocks Michael Burry is selling. If you want to read our detailed analysis of these stocks, go directly to Michael Burry Is Selling These 15 Stocks.
5. Meredith Corporation (NYSE: MDP)
Number of Hedge Fund Holders: 22
Meredith Corporation (NYSE: MDP) is placed fifth on our list of 15 stocks Michael Burry is selling. It operates from Iowa as a diversified media company. According to the latest data, Scion Asset Management, which sold off the entire stake it had in the company during the second quarter of 2021, paid an estimated average price of $29.78 per share for the stake. At the end of June, the shares for the company were trading at $43.44.
On August 13, investment advisory Benchmark maintained a Buy rating on Meredith Corporation (NYSE: MDP) stock and raised the price target to $58 from $43, appreciating the strong fourth fiscal quarter results of the company.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investments is a leading shareholder in Meredith Corporation (NYSE: MDP) with 2.7 million shares worth more than $119 million.
Here is what Ariel Investments has to say about Meredith Corporation (NYSE: MDP) in its Q4 2020 investor letter:
”Television broadcaster and magazine advertiser, Meredith Corporation (NYSE: MDP) underperformed, as Covid added to the existing challenge of generating cost synergies from the TIME acquisition. The stock was also impacted by being removed from a high dividend yield index. While we acknowledge the challenging fundamentals in its business, local news viewership is up tremendously in the midst of the pandemic and we believe MDP’s profitable local television stations provide a margin of safety1 at today’s valuation level.“
4. NetApp, Inc. (NASDAQ: NTAP)
Number of Hedge Fund Holders: 31
NetApp, Inc. (NASDAQ: NTAP) is a California-based cloud services company. It is ranked fourth on our list of 15 stocks Michael Burry is selling. 13F filings reveal that Scion Asset Management sold off its entire stake in the company between March and June this year.
On August 26, investment advisory Loop Capital kept a Buy rating on NetApp, Inc. (NASDAQ: NTAP) stock and raised the price target to $95 from $90, highlighting that the gross and operating margin structure of the firm was leveling up stronger than anticipated.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in NetApp, Inc. (NASDAQ: NTAP) with 1.6 million shares worth more than $139 million.
3. Lumen Technologies, Inc. (NYSE: LUMN)
Number of Hedge Fund Holders: 33
Lumen Technologies, Inc. (NYSE: LUMN) is a Louisiana-based technology and communications firm. It is placed third on our list of 15 stocks Michael Burry is selling. According to the latest data, Scion Asset Management first bought a stake in the company during the third quarter of 2020. It sold off the stake entirely during the second quarter of 2021. The fund paid an estimated average price of $9.99 per share for the holding. At the end of June, the shares of the firm were trading at $13.59.
On July 13, investment advisory Wells Fargo reiterated an Overweight rating on Lumen Technologies, Inc. (NYSE: LUMN) stock with a price target of $15, underlining that the company was unlikely to sell the entire mass market business after acquisition rumours.
At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1.05 billion in Lumen Technologies, Inc. (NYSE: LUMN), up from 32 in the preceding quarter worth $1 billion.
In its Q1 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Lumen Technologies, Inc. (NYSE: LUMN) was one of them. Here is what the fund said:
“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”
2. Vy Global Growth (NYSE: VYGG)
Number of Hedge Fund Holders: 35
Vy Global Growth (NYSE: VYGG) is ranked second on our list of 15 stocks Michael Burry is selling. It is a special purpose acquisition firm that operates from the Cayman Islands. Securities filings show that Scion Asset Management paid an estimated average price of $9.95 per share for the stake it accumulated in the company. The fund sold that stake during the second quarter of 2021. At the end of June, the shares of the firm were trading at $9.95.
Vy Global Growth (NYSE: VYGG) has a market cap of $624 million and a volume of 168,590. The 52-week price range of the stock lies between $9.63 and $12.74. The company concentrates on mergers in the financial, technology, and business services sectors.
At the end of the second quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $281 million in Vy Global Growth (NYSE: VYGG), down from 36 in the previous quarter worth $292 million.
1. Occidental Petroleum Corporation (NYSE: OXY)
Number of Hedge Fund Holders: 57
Occidental Petroleum Corporation (NYSE: OXY) is placed first on our list of 15 stocks Michael Burry is selling. The company develops oil and gas properties and operates from Texas. According to regulatory filings, Scion Asset Management, which sold off the stake it held in the firm entirely during the second quarter, first acquired a stake in the firm in the first quarter of 2021. It paid an estimated average price of $26.62 per share for the stake. At the end of June, the shares of the company were trading at $31.27.
On June 30, investment advisory Wells Fargo maintained an Equal Weight rating on Occidental Petroleum Corporation (NYSE: OXY) stock and raised the price target to $34 from $28, noting that the firm had sustained six consecutive quarters of working capital outflows.
At the end of the second quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in Occidental Petroleum Corporation (NYSE: OXY), up from 52 the preceding quarter worth $3.4 billion.
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