Below are the 5 activist stocks to consider for investors. For a comprehensive list and our discussion about Ken Squire’s investment philosophy, please see Ken Squire’s 10 Activist Stocks To Consider For Investors.
5. GCP Applied Technologies Inc. (NYSE: GCP)
Ken Squire looks bullish over the future fundamentals of GCP Applied Technologies Inc. (NYSE: GCP). This is because 13D Management has raised a stake in GCP by 7% in the latest quarter to 4.14% of the 13F portfolio, according to the latest filings. Shares of specialty chemical and building materials provider rose 9.6% since the beginning of this year, extending twelve-month gains to 37%. In the Q4 investor letter, Ken Squire highlighted the Starboard and GCP’s agreement for the exploration of strategic alternatives.
4. Trinity Industries, Inc. (NYSE: TRN)
Trinity Industries, Inc. (NYSE: TRN) is among the 10 activist stocks to consider for investors, according to Ken Squire. The firm has been holding a position in TRN since 2016. Shares of Trinity Industries soared sharply by 67% in the last twelve months. In addition to the share price gains, the company offers a dividend yield close to 3%. Trinity generated $415 million in revenues in the latest quarter, down 51% year over year.
The company said in the December quarter earnings release that the rail products business will deliver better operating results in 2021 amid outsourced fabrication activities.
3. Howmet Aerospace Inc. (NYSE: HWM)
Ken Squire has slashed his position in Howmet Aerospace Inc. (NYSE: HWM) during the fourth quarter by 15% to 4.32% of the overall 13F portfolio. Shares of Howmet Aerospace have been rallying at a sharp pace over the last six months amid easing social distancing policies and prospects for improving demand in 2021. HWM stock is up 73% in the last six months.
2. Cheniere Energy, Inc. (NYSE: LNG)
Cheniere Energy is a permanent member of Ken Squire’s portfolio since 2015. Shares of Cheniere Energy grew 18% so far in 2021, increasing the twelve-month gains to 91%. The latest share price gains are attributed to a stronger-than-expected outlook for 2021. The company expects FY 2021 consolidated adjusted EBITDA in the range of $4.1 billion – $4.4 billion compared to the prior estimate of $3.9 billion – $4.2 billion. The distributable cash flow is likely to come in around $1.4 billion – $1.7 billion based on strong execution and improved market conditions.
1. Perspecta Inc. (NYSE: PRSP)
13D Management portfolio manager and founder Ken Squire is bullish over the future prospects of Perspecta Inc. (NYSE: PRSP). He has raised the position in Perspecta by 32% to 5.18% of the portfolio in Q4. Ken Squire first initiated a position in Perspecta during the second quarter of 2020. Squire’s stock-picking strategy worked in favor of his hedge fund as shares of Perspecta grew 46% in the last six months. Ken Squire stated in the Q4 investor letter that Perspecta could be acquired by other companies in the future.
You can also take a peek at Top 15 Pharmaceutical Companies With Highest R&D Spending and 20 Most Valuable Companies In The World in February 2021.
