Top 5 Stocks to Buy According to David Abrams’s Abrams Capital Management

2. Change Healthcare Inc. (NASDAQ:CHNG)

Abrams Capital Management Stake: $437,317,000

Percentage of Abrams Capital Management’s Portfolio: 12.6%

Number of Hedge Fund Holders: 53

Change Healthcare Inc. (NASDAQ:CHNG) is a leading independent healthcare technology platform that offers data and analytics-driven solutions to improve clinical, financial, administrative, and patient engagement results in the United States healthcare system. Change Healthcare Inc. (NASDAQ:CHNG) products are intended to improve clinical decision-making, streamline billing, collection, and payment processes, and provide a positive patient experience. Abrams Capital Management decreased its stake in Change Healthcare Inc. (NASDAQ:CHNG) by 7% during Q3 2022 and held 15,908,220 shares of the company as per the last filing of the fund.

On September 22, 2022, Investment bank Raymond James increased their price target on Change Healthcare Inc. (NASDAQ:CHNG) ‘s stock. The firm now has a price target of $635 on the company and currently has a Strong Buy rating on the stock. The recent settlement of the UnitedHealth/Change Healthcare (CHNG) trial is a positive event for the company, which will drive more upside, according to Raymond James.

Here is what Ave Maria specifically said about Change Healthcare Inc. (NASDAQ:CHNG) in its second quarter 2022 investor letter.

Change Healthcare Inc. (NASDAQ:CHNG) received an acquisition offer from UnitedHealth (UNH) at a price more than double our average purchase price in January of 2021. The acquisition subsequently failed to receive government approval, but to incentivize Change Healthcare shareholders to fight the issue in court, UnitedHealth promised to pay a dividend to Change Healthcare shareholders in the event of a deal break. The stock price rose accordingly, and we took the opportunity to exit Change Healthcare at an attractive price.