Warren Buffett is Selling These 3 Stocks in 2022

2. STORE Capital Corporation (NYSE:STOR)

Number of Hedge Fund Holders: 17

Stake Discarded in Q1 2022: 40%

STORE Capital Corporation (NYSE:STOR) is a net lease real estate investment trust that invests in single tenant properties across the United States. All properties owned and managed by STORE Capital Corporation (NYSE:STOR) are profit centers. In Q1 2022, Warren Buffett dumped 40% of his STORE Capital Corporation (NYSE:STOR) stake, holding 14.75 million shares worth $431.2 million. Berkshire Hathaway first added the stock to its portfolio in Q2 2017. 

On May 4, STORE Capital Corporation (NYSE:STOR) reported its Q1 results. The company posted a Q1 FFO of $0.57, beating estimates by $0.05. The revenue of $222.12 million climbed 21.9% year-over-year, topping market consensus by $10.01 million.

BMO Capital analyst John Kim on March 7 downgraded STORE Capital Corporation (NYSE:STOR) to Underperform from Market Perform with a price target of $29, down from $37. An “increasingly challenging” macro environment may impact the company’s earnings growth, the analyst told investors, citing the “lower-quality” portfolio. In case of  a recession, STORE Capital Corporation (NYSE:STOR) may see lower rent collections, like it did in 2020, added Kim.

According to Insider Monkey’s Q4 data, 17 hedge funds were bullish on STORE Capital Corporation (NYSE:STOR), compared to 16 funds in the last quarter. In Q1 2022, Dmitry Balyasny’s Balyasny Asset Management was a notable stakeholder of the company, with 3.35 million shares worth over $98 million.