In this article, we discuss the top 5 stocks to buy today according to Kerr Neilson’s Platinum Asset Management. If you want to see more of the top holdings of the hedge fund, click Top 10 Stocks to Buy Today According to Kerr Neilson’s Platinum Asset Management.
5. The Mosaic Company (NYSE:MOS)
Platinum Asset Management’s Stake Value: $150,198,000
Percentage of Platinum Asset Management’s 13F Portfolio: 4.18%
Number of Hedge Fund Holders: 46
The Mosaic Company (NYSE:MOS) is a Florida-based company that produces concentrated phosphate and potash crop nutrients in North America and internationally. Kerr Neilson’s Platinum Asset Management held 3.8 million shares of The Mosaic Company (NYSE:MOS) in Q4 2021, worth over $150 million, representing 4.18% of the total 13F securities.
On April 22, The Mosaic Company (NYSE:MOS) reported its Q1 results, announcing earnings per share of $1.95, missing consensus estimates by $0.03. Revenue for the period jumped 56.30% year-over-year to $3.84 billion, falling below market predictions by $87.79 million.
Mizuho analyst Christopher Parkinson on April 29 raised the price target on The Mosaic Company (NYSE:MOS) to $89 from $59 and kept a Buy rating on the shares. As the global agriculture macro “is increasingly appearing conducive for a multi-year bullish call,” share pullbacks will be “short and shallow, but nonetheless worth waiting for at this juncture,” the analyst told investors in a bullish thesis.
In the fourth quarter of 2021, 46 hedge funds were bullish on The Mosaic Company (NYSE:MOS), up from 40 funds in the third quarter. Eric W. Mandelblatt’s Soroban Capital Partners is a prominent shareholder of the company, with 4.3 million shares worth $172.70 million.
Here is what Ariel Investments has to say about The Mosaic Company (NYSE:MOS) in its Q4 2021 investor letter:
“We continue to believe recent aggressive fiscal and monetary policy will drive high levels of intransient (rather than transitory) inflation. Recent inflation numbers have exceeded our hawkish predictions. While we believed the Consumer Price Index might rise +4% in 2021, double the Fed target of +2%; it rose +7%, the highest level in forty years. Ariel Focus Fund has been well positioned for this environment as natural resource and material companies such as The Mosaic Company (MOS) which returned +72.15% for the year. This was one of our two largest holdings at year-end and have performed well very early into 2022.”
4. Trip.com Group Limited (NASDAQ:TCOM)
Platinum Asset Management’s Stake Value: $277,385,000
Percentage of Platinum Asset Management’s 13F Portfolio: 7.72%
Number of Hedge Fund Holders: 35
Trip.com Group Limited (NASDAQ:TCOM) is a Chinese travel service provider that helps clients with accommodation, ticketing, packaged tours, and other travel-related services in China and internationally. Kerr Neilson’s Platinum Asset Management boosted its stake in Trip.com Group Limited (NASDAQ:TCOM) by 9% in Q4 2021, with 11.2 million shares worth $277.3 million.
On March 24, Mizuho analyst James Lee maintained a Buy recommendation on Trip.com Group Limited (NASDAQ:TCOM) but lowered the firm’s price target on the shares to $32 from $35. According to the analyst, Trip.com Group Limited (NASDAQ:TCOM)’s Q4 results exceeded expectations due to a better than expected rebound in travel volume and “prudent” margin management during uncertain times. However, due to higher omicron cases in March and continued implementation of the zero-tolerance policy, the analyst expects the company’s results to be “subdued” in the short-term and international travel to be limited for the foreseeable future.
According to Insider Monkey’s Q4 data, 35 hedge funds were long Trip.com Group Limited (NASDAQ:TCOM), compared to 36 funds in the previous quarter. Ken Fisher’s Fisher Asset Management is one of the leading shareholders of the company, with a position worth approximately $230 million.
Here is what Oakmark Fund has to say about Trip.com Group Limited (NASDAQ:TCOM) in its Q3 2021 investor letter:
“Trip.com Group ADR (China), the largest online travel agency in China, and Reckitt Benckiser Group (U.K.), a large global consumer products company, were both previous holdings in the Fund. With significant declines in share price, the stocks again offered the necessary potential upside to be selected for our portfolio.”
3. Micron Technology, Inc. (NASDAQ:MU)
Platinum Asset Management’s Stake Value: $327,269,000
Percentage of Platinum Asset Management’s 13F Portfolio: 9.10%
Number of Hedge Fund Holders: 83
Micron Technology, Inc. (NASDAQ:MU) is headquartered in Boise, Idaho, operating as a manufacturer of memory and storage products that are distributed worldwide. The company designs dynamic random-access memory, flash memory, and USB flash drives. Securities filings for Q4 2021 reveal that Kerr Neilson’s fund owned 3.5 million shares of Micron Technology, Inc. (NASDAQ:MU), worth $327.2 million, representing 9.10% of the 13F holdings.
On March 29, Micron Technology, Inc. (NASDAQ:MU) reported earnings for the quarter ending February 2022. The company posted an EPS of $2.14, above consensus by $0.16. Revenue for the period grew about 25% from the prior-year quarter, reaching $7.79 billion, outperforming estimates by $241.85 million.
Mizuho analyst Vijay Rakesh raised the price target on Micron Technology, Inc. (NASDAQ:MU) on March 30 to $113 from $110 and reiterated a Buy rating on the shares following the “solid” February quarter results. The company reported quarter-over-quarter growth in storage and compute, as well as longer-term tailwinds from product mix and content increases, the analyst told investors. He believes that Micron Technology, Inc. (NASDAQ:MU) is positioned advantageously heading into 2022.
According to the fourth quarter database of Insider Monkey, 83 hedge funds were long Micron Technology, Inc. (NASDAQ:MU), up from 63 funds in the earlier quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is a significant shareholder of the company, with 5.4 million shares worth $507.30 million.
Here is what Hazelton Capital Partners has to say about Micron Technology, Inc. (NASDAQ:MU) in its Q3 2021 investor letter:
“It’s hard to explain how shares of Micron Technology, manufacturer of DRAM and NAND semiconductor chips, can fall during a global chip shortage. In most industries, focusing on demand can give you a clear insight into what lays ahead for a company. Today, the memory and storage chip industry is no different. However, in the past, companies focused on market share led to the reckless build out of chip fabrication plants (FABs), oversupply, falling average selling prices (ASPs) of memory and storage chips, lower margins, and declining cash flows. As the industry consolidated – there are now just 3 major producers of DRAM and 5 on the NAND side – rational behavior among the key players began to take hold as competitors began focusing more on R&D. Currently, chip pricing remains cyclical although less so than in the past and that cyclicality has a long-term upward bias. The ongoing transition to newer and more robust platforms (3D 176-layer NAND & 1-Alpha node DRAM) has provided the memory and storage chip industry with improved supply capacity under its current manufacturing footprint, ultimately pressuring ASPs. Over the past three years, as most of the large platform conversions have already taken place, being able to add more bits per wafer has reached a saturation point. With no major FAB build outs planned in the near-term by competitors Samsung or SK Hynix, constrained supply and flattening cost curves should lead to durable and upward sloping ASPs once the recent volatility from the chip shortage subsides.
Currently Micron Technology trades at just 8x 2022 estimated earnings. MU is expecting growth in both DRAM and NAND not just from the supply of more chips to data centers, artificial intelligence, the auto sector, and mobile devices, but also from greater demand for gigabyte capacity per unit within those segments. With a healthy balance sheet, improving return on invested capital, and expanding cash flows, not only should Micron benefit from improving future earnings but its multiple should also reflect the transition to a flattening cost curve.”
2. Microchip Technology Incorporated (NASDAQ:MCHP)
Platinum Asset Management’s Stake Value: $344,378,000
Percentage of Platinum Asset Management’s 13F Portfolio: 9.58%
Number of Hedge Fund Holders: 48
Microchip Technology Incorporated (NASDAQ:MCHP) is an Arizona-based company that designs, develops, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. Kerr Neilson’s Platinum Asset Management boosted its Microchip Technology Incorporated (NASDAQ:MCHP) stake by 102% in Q4 2021, holding about 4 million shares worth $344.3 million, representing 9.58% of the total 13F portfolio.
On February 3, Microchip Technology Incorporated (NASDAQ:MCHP) declared a $0.253 per share quarterly dividend, a 9.1% increase from its prior dividend of $0.232. The dividend was distributed to shareholders on March 8. The stock delivers a dividend yield of 1.54% as of May 2.
Mizuho analyst Vijay Rakesh on April 20 lowered the price target on Microchip Technology Incorporated (NASDAQ:MCHP) to $75 from $87 and kept a Neutral rating on the shares heading into Q1 earnings. While semiconductor suppliers could have an in-line March quarter, there are risks of surplus inventory, the analyst informed investors.
According to the database of Insider Monkey, 48 hedge funds were bullish on Microchip Technology Incorporated (NASDAQ:MCHP) in the fourth quarter of 2021, compared to 41 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors held a significant position in the company, with 2.4 million shares worth $211.6 million.
1. ZTO Express (Cayman) Inc. (NYSE:ZTO)
Platinum Asset Management’s Stake Value: $420,636,000
Percentage of Platinum Asset Management’s 13F Portfolio: 11.70%
Number of Hedge Fund Holders: 28
ZTO Express (Cayman) Inc. (NYSE:ZTO) is a Shanghai-based company that offers express delivery and value-added logistics services in China for e-commerce and traditional merchants. ZTO Express (Cayman) Inc. (NYSE:ZTO) is the largest holding in the Q4 portfolio of Kerr Neilson’s Platinum Asset Management, with the hedge fund owning about 15 million shares of the company, worth $420.6 million, representing 11.70% of the total 13F portfolio.
On March 18, Citi analyst Lu Xu maintained a Buy rating on ZTO Express (Cayman) Inc. (NYSE:ZTO) but lowered the price target on the shares to $39.60 from $40.90 following the Q4 results. ZTO Express (Cayman) Inc. (NYSE:ZTO) is actively exploring its options regarding the American delisting issue in order to gain more proactive control, including but not limited to a Hong Kong primary dual listing, the analyst told investors in a research note. His bullish thesis remains intact given ZTO Express (Cayman) Inc. (NYSE:ZTO)’s “defensiveness with better-than-peer cost advantage and attractive valuation”.
Insider Monkey’s fourth quarter database suggests that 28 hedge funds were bullish on ZTO Express (Cayman) Inc. (NYSE:ZTO), up from 20 funds in the prior quarter. The total stakes owned in Q4 2021 amounted to more than $1 billion. Wang Chan’s Serenity Capital is a notable stakeholder of the company, with 7.4 million shares worth $210.6 million.
You can also take a look at Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio and 10 Finance Stocks to Buy Today According to George Soros’ Soros Fund Management.
