In this article, we will look at the 5 best stocks to buy for the long term according to ValueAct Capital. If you want to read about ValueAct Capital’s long-term strategies and the activist hedge fund’s performance, you can go to 10 Best Stocks to Buy for Long Term According to ValueAct Capital.
5. LKQ Corporation (NASDAQ:LKQ)
ValueAct Capital’s Stake Value: $796,964,000
Percentage of ValueAct Capital’s 13F Portfolio: 10.96%
Number of Hedge Fund Holders: 35
LKQ Corporation (NASDAQ:LKQ) distributes replacement parts, components, and systems used in the repair and maintenance of vehicles. The company operates through three primary segments: North America, Europe, and Specialty. As of April 28, Barrington analyst Gary Prestopino has a buy-side Outperform rating on LKQ Corporation (NASDAQ:LKQ) and a maximum price target of $70 on the shares.
As of July 5, LKQ Corporation (NASDAQ:LKQ) has a forward dividend yield of 2.02% and a trailing twelve-month PE ratio of 13.20.
As of the end of Q1 2022, ValueAct Capital is the largest shareholder in LKQ Corporation (NASDAQ:LKQ). As of March 31, the fund owns 17.55 million shares of the company which brings its stakes to $796.96 million. The investment covers 10.96% of ValueAct Capital’s 13F portfolio.
At the close of Q1 2022, 35 hedge funds were long LKQ Corporation (NASDAQ:LKQ). These funds held collective stakes worth $1.16 billion in the company, down from $1.58 billion in Q4 2021 with 34 positions.
4. CBRE Group, Inc. (NYSE:CBRE)
ValueAct Capital’s Stake Value: $844,968,000
Percentage of ValueAct Capital’s 13F Portfolio: 11.62%
Number of Hedge Fund Holders: 55
CBRE Group, Inc. (NYSE:CBRE) operates as a commercial real estate services and investment company worldwide. The company has three business segments: Advisory Services, Global Workplace Solutions, and Real Estate Investments. At the close of Q1 2022, 55 hedge funds were bullish on CBRE Group, Inc. (NYSE:CBRE). These funds held collective stakes worth $3.30 billion in the company, down from $3.70 billion in the preceding quarter with 48 positions.
As of April 5, Goldman Sachs analyst Chandni Luthra has a $111 price target and a Buy rating on CBRE Group, Inc. (NYSE:CBRE).
As of March 31, ValueAct Capital owns more than 9.23 million shares of CBRE Group, Inc. (NYSE:CBRE), which brings its stakes in the company to $844.96 million. ValueAct Capital is the second-largest shareholder in CBRE Group, Inc. (NYSE:CBRE) and the investment covers 11.62% of its 13F portfolio.
Here is what Baron Funds had to say about CBRE Group, Inc. (NYSE:CBRE) in its “Baron Real Estate Fund” first-quarter 2022 investor letter:
“Following strong share price performance in 2021, the shares of leading commercial real estate services firm, CBRE Group, Inc. (NYSE:CBRE) declined in the most recent quarter. We believe the current valuations of the company is compelling. Further, we believe the company is well-positioned to benefit from long-term growth opportunities that include a growing list of companies looking to outsource their commercial real estate needs, the growth in institutional ownership of commercial real estate, and attractive acquisition opportunities given their highly desirable global platforms and strong balance sheets.”
3. Seagate Technology plc (NASDAQ:STX)
ValueAct Capital’s Stake Value: $1,207,993,000
Percentage of ValueAct Capital’s 13F Portfolio: 16.61%
Number of Hedge Fund Holders: 32
Seagate Technology plc (NASDAQ:STX) provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. As of March 31, ValueAct Capital owns 13.43 million shares of the company which amounts to a stake value of $1.20 billion. The investment covers 16.61% of the activist hedge fund’s 13F portfolio.
On July 5, Benchmark analyst Mark Miller trimmed his price target on Seagate Technology plc (NASDAQ:STX) to $93 from $100 but reiterated a Buy rating on the shares. Moreover, as of July 5, Seagate Technology plc (NASDAQ:STX) has a trailing-twelve-month PE ratio of 8.80 and is offering a forward dividend yield of 4.05%.
At the end of Q1 2022, 32 hedge funds were eager of Seagate Technology plc (NASDAQ:STX) with stakes worth $1.82 billion in the company. This is compared to 28 positions in the previous quarter with stakes worth $2.80 billion.
2. KKR & Co. Inc. (NYSE:KKR)
ValueAct Capital’s Stake Value: $1,321,735,000
Percentage of ValueAct Capital’s 13F Portfolio: 18.18%
Number of Hedge Fund Holders: 54
KKR & Co. Inc. (NYSE:KKR) is a private equity and real estate investment firm specializing in direct and fund of fund investments. In the first quarter of 2022, ValueAct Capital raised its stakes in KKR & Co. Inc. (NYSE:KKR) by 3%, bringing them to $1.32 billion. ValueAct Capital is the top shareholder in KKR & Co. Inc. (NYSE:KKR) and as of March 31, owns over 22.60 million shares of the company which represents 18.18% of its 13F portfolio.
As of May 19, Deutsche Bank analyst Brian Bedell has a $79 price target and a Buy rating on KKR & Co. Inc. (NYSE:KRR).
As of July 5, KKR & Co. Inc. (NYSE:KKR) has a trailing twelve-month PE ratio of 10.57 and is offering a forward dividend yield of 1.33%.
At the close of Q1 2022, 54 hedge funds held stakes in KKR & Co. Inc. (NYSE:KKR) worth $4.04 billion. This is compared to 55 positions in the previous quarter with stakes worth $5.53 billion.
Third Avenue Management, an investment management firm, recently published its “Real Estate Value Fund” first-quarter 2022 investor letter in which it mentioned KKR & CO. Inc. (NYSE:KKR), here is what they said:
“During the quarter it was reported that US private equity firm KKR (NYSE:KKR) purchased the Japanese fund management platform MC-UBSR, a joint venture between Mitsubishi Corp and UBS (NYSE:UBS) that manages two public Japanese REITs with US $15bn of total assets. The reported purchase price of US $2bn equated to more than 10% of assets under management and 32x trailing EBITDA. The high price paid for MC-UBSR surprised Fund Management. Such high pricing is likely a function of the difficulties foreign asset management firms face when attempting to build a platform in Japan from the ground up, and their frustration given Japan’s standing as one of the most liquid institutional real estate investment markets globally. When looking at the MC-UBSR transaction, the Fund’s investments in Tosei Inc and Nomura Real Estate Holdings are prime examples of the disconnect between public market pricing and private market pricing.”
1. Fiserv, Inc. (NASDAQ:FISV)
ValueAct Capital’s Stake Value: $1,321,769,000
Percentage of ValueAct Capital’s 13F Portfolio: 18.18%
Number of Hedge Fund Holders: 58
Fiserv, Inc. (NASDAQ:FISV) provides payment and financial services technology worldwide. The company operates through three segments: Acceptance, Fintech, and Payments. It is the top 13F holding of ValueAct Capital. As of March 31, ValueAct Capital owns over 13 million shares of Fiserv, Inc. (NASDAQ:FISV), which brings its stakes in the company to $1.32 billion and makes it the second-largest shareholder. The investment covers 18.18% of ValueAct Capital’s 13F portfolio.
On June 30, Truist analyst Andrew Jeffrey slashed his price target on Fiserv, Inc. (NYSE:FISV) to $95 from $105 and maintained a Hold rating on the shares.
Insider Monkey found 58 hedge funds bullish on Fiserv, Inc. (NASDAQ:FISV) at the end of Q1 2022. These funds held collective stakes of $3.87 billion in the company, down from $3.90 billion in the prior quarter with 61 positions.
Here is what ClearBridge Investments had to say about Fiserv, Inc. (NASDAQ:FISV) in its “Value Equity Strategy” fourth-quarter 2021 investor letter:
“While the threat of disruption risk to these established payment companies should not be taken lightly, it is important to note that many of these emerging disruptors are small relative to the massive global payments network and heavily reliant on the very payment infrastructure they are trying to disrupt. This led us to initiate a position in Fiserv, whose stock dropped to a level that embedded projections for negative long-term growth despite no current evidence of disruption. We think Fiserv will continue to grow despite perceived disruption risks given its scale and efficiency. Fiserv also owns cloud-based payments hardware and software system Clover, which is both bigger and faster growing than Square; this provides an additional degree of protection against further disruption risk.
You can also take a look at 10 Safe Stocks To Invest in For Long Term and Top Stocks to Invest In According to Jeffrey Ubben’s ValueAct Capital.
