In this article, we will discuss the 10 latest stock picks of billionaire Steve Cohen. You can skip our detailed analysis of Steve Cohen’s investment philosophy and his hedge fund performance over the years, and go directly to 5 Latest Stock Picks of Billionaire Steve Cohen.
Steven A. Cohen is an American billionaire hedge fund manager and also the majority owner of Major League Baseball’s New York Mets. According to Forbes, as of March 2022, Mr. Cohen’s net worth stands at $15.9 billion. In addition, he ranked 48th on the 2021 Forbes 400 list. As of the fourth quarter of 2021, Cohen manages over $25.04 billion in 13F securities through his hedge fund, Point72 Asset Management.
Mr. Cohen’s Life Before Point72 Asset Management
Mr. Cohen went to the Wharton School at the University of Pennsylvania where he was an economics major. During this time, he opened a brokerage account with $1,000. In 1978, he graduated with a bachelor’s degree in Economics. Upon graduating, Mr. Cohen landed a job as a junior trader at Gruntal & Co., where he made a profit of $8,000 on his very first day. By 1984, he was managing a $75 million portfolio, had six traders working under him, and was making his employer a profit in excess of $100,000 per day. Mr. Cohen was suspected of insider trading in the late 1980s after he put a bet on the merger between General Electric and RCA before it was announced.
S.A.C. Capital Advisors
In 1992, Steve Cohen founded his own hedge fund, S.A.C. Capital Advisors with $20 million. His initial strategy was centered around high-frequency and rapid-fire trading. In 2003, the New York Times reported that “S.A.C. is one of the biggest hedge funds and is known for frequent and rapid trading”. Mr. Cohen has shown to be an intelligent and versatile investor. After profiting from his initial high-frequency trading strategies, he changed the pace at which he was trading and started trading long-short and fixed-income stocks.
Point72 Asset Management
In 2014, Mr. Cohen founded Point72 Asset Management as a venture capital fund initially. The fund opened itself to outside money in 2018. Point72 Asset Management has had its fair share of ups and downs. The fund reported a 16% gain in 2020, which marked its best-performing year. The fund lost money during the GameStop short squeeze in 2021, reporting losses of between 10% and 15%. Despite the downturn, Point72 Asset Management has continued to expand its assets and portfolio. The fund’s 13F portfolio for the fourth quarter of 2021 was valued at $25.04 billion, up from $22.7 billion in the third quarter of 2021.
Along with significantly upping his stakes in Amazon.com, Inc. (NASDAQ:AMZN) and many other stocks, Mr. Cohen also purchased several notable new securities as well. Among his top buys for the fourth quarter of 2021 were Micron Technology, Inc.(NASDAQ:MU), The Coca-Cola Company (NYSE:KO), and Atlassian Corporation Plc (NASDAQ:TEAM).
Our Methodology
For our list of the 10 latest stock picks of billionaire Steve Cohen, we went through Point72 Asset Management’s 13F portfolio holdings as of December 31, 2021, according to the fund’s latest 13F filing with the SEC. We ordered our selection by value and included new stocks that were not a part of the fund’s portfolio at the end of Q3. We also included the overall hedge fund sentiment and analyst ratings for each stock.
Without further ado, let’s look at the 10 latest stock picks of billionaire Steve Cohen.
10 Latest Stock Picks of Billionaire Steve Cohen
10. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
Stake Value of Point72 Asset Management: $70,388,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 46
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is an American targeted oncology company that focuses on the development of cancer therapeutics. The stock is one of the latest additions to Point72 Asset Management’s 13F portfolio. As of the fourth quarter of 2021, the fund’s stake in the company is valued at $70.38 million. The investment covers 0.28% of Point72 Asset Management’s 13F portfolio.
This February, BofA analyst Jason Gerberry upgraded Mirati Therapeutics, Inc. (NASDAQ:MRTX) to ‘Neutral’ from ‘Underperform’ and gave the stock a $141 price target.
By the end of the fourth quarter of 2021, 46 hedge funds held positions in Mirati Therapeutics, Inc. (NASDAQ:MRTX), with the total stakes of these funds standing at $2.61 billion.
Like Micron Technology, Inc.(NASDAQ:MU), The Coca-Cola Company (NYSE:KO), and Atlassian Corporation Plc (NASDAQ:TEAM), Mirati Therapeutics, Inc. (NASDAQ:MRTX) is one of the positions initiated by Point72 Asset Management in the fourth quarter of 2021.
Here is what Baron Funds had to say about Mirati Therapeutics, Inc. (NASDAQ:MRTX) in its third-quarter 2021 investor letter:
“We initiated a position in Mirati Therapeutics, Inc., a clinical-stage biotechnology company developing novel therapeutics targeting the genetic and immunologic drivers of cancer. The company’s lead drug, known as Adagrasib, targets a protein called KRAS that is a central node in driving tumor growth. We think Adagrasib has a best-in-class profile in a multibillion-dollar drug category. Currently, Amgen has a competing drug on the market, but clinical data on Adagrasib presented at the recent European Society of Medical Oncology meeting gives us confidence that Mirati’s drug has better attributes including residence time on target, efficacy response rates, longer duration of treatment, combinability opportunities, and blood brain barrier penetration.”
9. Phillips 66 (NYSE:PSX)
Stake Value of Point72 Asset Management: $84,311,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 41
This January, Phillips 66 (NYSE:PSX) announced its earnings for the fiscal fourth quarter of 2021, in which the company beat on both EPS (by $1.01) and revenue estimates. The company reported earnings per share of $2.94 and grew its revenue by 100.19% year-over-year to $33.57 billion, beating estimates by $6.17 billion. Phillips 66 (NYSE:PSX) shares have gained 22.05% over the past six months.
On February 1, 2022, RBC Capital analyst Elvira Scotto raised her price target on Phillips 66 (NYSE:PSX) to $101 from $97 and maintained an ‘Outperform’ rating on the shares, in light of the company’s strong performance in Q4 2021.
Insider Monkey spotted Phillips 66 (NYSE:PSX) in 41 hedge fund portfolios at the end of the fourth quarter of 2021. The total value of the PSX stakes held by these funds was $927.41 million. Those figures are up from 34 long positions in the prior quarter, with total stakes valued at $409.38 million. Clearly, hedge funds like what they’re seeing from Phillips 66 right now, and believe in the refiner’s potential to have a big 2022 as oil prices rise.
8. Cisco Systems, Inc. (NASDAQ:CSCO)
Stake Value of Point72 Asset Management: $86,380,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 57
Point72 Asset Management added Cisco Systems, Inc. (NASDAQ:CSCO) to its 13F portfolio in the fourth quarter of 2021. The fund’s stake in the company was valued at $86.38 million on December 31, which accounted for 0.34% of the value of its Q4 investment portfolio. There were 56 other hedge funds among those tracked by Insider Monkey, that held stakes in Cisco Systems, Inc. (NASDAQ:CSCO) at the end of Q4. All told, those 57 funds held close to $3.42 billion in CSCO shares.
This February, Cisco Systems, Inc. (NASDAQ:CSCO) reported its revenue and earnings per share for Q4 2021, for which the company beat estimates on both counts. Cisco’s revenue for the quarter came in at $12.72 billion, beating estimates by $51.05 million. Cisco Systems, Inc. (NASDAQ:CSCO) also reported earnings per share of $0.84, beating estimates by $0.03.
On February 16, 2022, the company also announced that its board of directors declared a quarterly cash dividend of $0.38 per share, up 2.7% from the prior dividend of $0.37. The stock’s forward dividend yield at the time was 2.8%, and the dividend was payable on April 27, 2022, to shareholders of record on April 6, 2022.
On February 17, 2022, Cowen analyst Paul Silverstein raised his price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $66 from $61 and reiterated an ‘Outperform’ rating on the shares.
ClearBridge Investments, an investment management firm, recently published its third quarter 2021 investor letter in which it mentioned Cisco Systems, Inc. (NASDAQ:CSCO). Here’s what the experts at ClearBridge had to say:
“We reinvested a portion of the proceeds into existing holding Cisco Systems, which also has highly valuable technology and an improving secular growth story with its leading position in core networking hardware, as well as in its growing software and services business. Cisco has refocused on winning share in the large and growing hyperscale market and has been investing aggressively in R&D to support growth. We believe Cisco has found new legs after previously ceding some growth opportunities in cloud while maintaining its strong presence in the carrier and enterprise markets. Cisco boasts a strong balance sheet and accelerating multiyear growth while trading at a modest multiple of earnings.”
7. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Stake Value of Point72 Asset Management: $87,174,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 42
Hedge funds are also growing more bullish on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), which was a part of 42 funds’ portfolios at the end of Q4 2021, including Cohen’s new position. The total value of those stakes stood in excess of $1 billion, up from the $850.17 million in shares that were owned by 37 hedge funds a quarter prior. Cohen’s new stake, valued at approximately $87.17 million, represents 0.34% of Point72 Asset Management’s Q4 2021 13F portfolio value.
On January 6, 2022, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) released its earnings results for the fiscal first quarter of 2022 ended November 30. The company’s EPS of $1.68 beat estimates by $0.34, while its revenue of $33.9 billion also beat estimates by $946.75 million.
Mizuho analyst Ann Hynes raised her price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $56 from $51 in January, while maintaining a ‘Neutral’ rating on the shares.
Miller Howard Investments, an investment management firm, shared its thoughts on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter. Here’s what the firm had to say:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
6. Cigna Corporation (NYSE:CI)
Stake Value of Point72 Asset Management: $96,383,000
Percentage of Point72 Asset Management’s 13F Portfolio: 0.38%
Number of Hedge Fund Holders: 53
Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States. In February, the company announced its plans for capital deployment to enhance shareholder value as well as expand its share repurchase program. The company expects to generate over $12 billion of deployable capital in 2022.
Cigna’s board of directors approved a total increase of $6 billion in incremental share repurchase authorization, upping the total share repurchase authority to $10 billion. The company expects to deploy more than $7 billion for share repurchase in 2022. Moreover, Cigna Corporation (NYSE:CI) declared a quarterly cash dividend of $1.12 per share, up 12% from the prior dividend of $1.00.
On March 2, 2022, Mizuho analyst Ann Hynes raised her price target on Cigna Corporation (NYSE:CI) to $266 from $245 and maintained a ‘Buy’ rating on the shares.
At the end of the fourth quarter of 2021, 53 hedge funds held stakes in Cigna Corporation (NYSE:CI) worth $1.92 billion. One of those 53 stakes was Point72 Asset Management’s new position, which was valued at $96.38 million. The investment accounts for 0.38% of the value of Point72’s 13F portfolio as of December 31.
Dodge & Cox Stock Fund mentioned Cigna Corporation (NYSE:CI) in its third-quarter 2021 investor letter. Here’s what the firm had to say:
“Cigna (2.5% position) is one of the largest and most diversified health care services organizations in the United States. The stock has underperformed recently due to weak financial results, which included higher than expected medical costs. Nevertheless, the company continues to work towards its 10-13% annual earnings growth target, generates significant cash flow, and has plans to deploy capital to shareholders through debt repayments, share buybacks, and a newly announced dividend program. Cigna trades at an attractive valuation of nine times forward earnings.”
In the second half of this article we’ll look at Cohen’s purchases of Micron Technology, Inc.(NASDAQ:MU), The Coca-Cola Company (NYSE:KO), and Atlassian Corporation Plc (NASDAQ:TEAM), among other compelling stocks.
Click to continue reading and see 5 Latest Stock Picks of Billionaire Steve Cohen.
Suggested articles:
- Billionaire Steve Cohen’s Top 10 Stock Picks
- 15 Best Jim Cramer Stocks to Buy Now
- 10 Best Stocks to Buy According to Billionaire Steve Cohen
Disclosure: None. 10 Latest Stock Picks of Billionaire Steve Cohen is originally published on Insider Monkey.
