In this article, we discuss 5 best stocks to buy now according to billionaire David Harding. If you want to see some more picks of the billionaire, click 10 Best Stocks to Buy Now According to Billionaire David Harding.
5. Akamai Technologies, Inc. (NASDAQ:AKAM)
Winton Capital Management’s Stake Value: $14,776,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.89%
Number of Hedge Fund Holders: 28
Akamai Technologies, Inc. (NASDAQ:AKAM) is a Massachusetts-based cloud solutions company that optimizes digital content and business applications. The company also protects users from cyberattacks and online threats while improving business performance.
Securities filings for the fourth quarter of 2021 reveal that David Harding’s Winton Capital Management held 126,249 shares of Akamai Technologies, Inc. (NASDAQ:AKAM), worth $14.7 million, representing 0.89% of the total 13F securities.
On February 15, Akamai Technologies, Inc. (NASDAQ:AKAM) posted earnings for the December quarter, reporting an EPS of $1.49, above consensus estimates by $0.07. Revenue for the period jumped roughly 7% year-over-year to $905.36 million, topping analysts’ predictions by $9.02 million. Akamai Technologies, Inc. (NASDAQ:AKAM) also announced the acquisition of Linode, a trusted infrastructure-as-a-service (IaaS) platform provider. This $900 million purchase will result in income tax savings for Akamai Technologies, Inc. (NASDAQ:AKAM) over the course of 15 years, amounting to approximately $120 million.
DA Davidson analyst Rudy Kessinger maintained a Buy recommendation on Akamai Technologies, Inc. (NASDAQ:AKAM) but lowered the firm’s price target on the shares to $130 from $143. The stock fell despite the “solid” Q4 results since the company put forward a disappointing guidance and announced a concerning acquisition, according to the analyst. While Kessinger “still has some questions as to Akamai’s vision and strategy” after its $900 million Linode acquisition announcement, he still believes that the shares are “undervalued”.
Among the hedge funds tracked by Insider Monkey, 28 funds were bullish on Akamai Technologies, Inc. (NASDAQ:AKAM) at the end of the fourth quarter of 2021, compared to 30 funds in the prior quarter. Ken Griffin’s Citadel Investment Group held a leading stake in the company, with 830,070 shares worth more than $97 million.
Here is what Nelson Capital Management has to say about Akamai Technologies, Inc. (NASDAQ:AKAM) in its Q2 2021 investor letter:
“In the technology sector, we sold our position in Akamai (tkr: AKAM). Akamai has benefitted from higher internet traffic during the pandemic, but we expect the company to face difficult comparable earnings results in 2021 and growth expectations going forward remain low.”
4. CyrusOne Inc. (NASDAQ:CONE)
Winton Capital Management’s Stake Value: $14,997,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.90%
Number of Hedge Fund Holders: 43
CyrusOne Inc. (NASDAQ:CONE) is a Texas-based real estate investment trust which operates carrier-neutral data centers in North America, Europe, and South America. Winton Capital Management held 167,158 shares of CyrusOne Inc. (NASDAQ:CONE) in Q4 2021, worth roughly $15 million, representing 0.90% of the total 13F investments.
On March 25, KKR & Co. Inc. (NYSE:KKR) and Global Infrastructure Partners concluded their acquisition of CyrusOne Inc. (NASDAQ:CONE) in an all-cash transaction worth approximately $15 billion. The companies also assumed the debt of CyrusOne Inc. (NASDAQ:CONE) in this transaction. CyrusOne Inc. (NASDAQ:CONE) has stopped trading on the Nasdaq after the deal was completed.
According to Insider Monkey’s Q4 data, 43 hedge funds held long positions in CyrusOne Inc. (NASDAQ:CONE), up from 27 funds in the earlier quarter. Matthew Halbower’s Pentwater Capital Management is the leading stakeholder of the company, with 3.52 million shares worth $315.8 million.
3. Arista Networks, Inc. (NYSE:ANET)
Winton Capital Management’s Stake Value: $16,127,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.97%
Number of Hedge Fund Holders: 38
Arista Networks, Inc. (NYSE:ANET) was incorporated in 2004 and is headquartered in Santa Clara, California, providing cloud networking solutions to internet service providers, financial services organizations, government agencies, and media and entertainment companies, among others. David Harding held a $16.1 million stake in Arista Networks, Inc. (NYSE:ANET) according to the fourth quarter filings, which accounts for 0.97% of the total 13F holdings.
On February 14, Arista Networks, Inc. (NYSE:ANET) reported its Q4 results, announcing earnings per share of $0.82, exceeding estimates by $0.09. Revenue for the period climbed 27.14% year-over-year to $824.46 million, outperforming analysts’ predictions by $33.75 million.
Wells Fargo analyst Aaron Rakers upgraded Arista Networks, Inc. (NYSE:ANET) on March 10 to Overweight from Equal Weight with a price target of $160, up from $142. The analyst believes Arista Networks, Inc. (NYSE:ANET) is positioned well for a strong cloud upgrade cycle. He also cited Arista Networks, Inc. (NYSE:ANET)’s significant inventory and business expansion compared to the Wall Street 2022 product COGS estimates as an indicator of potential revenue upside, in addition to ongoing growth/share gains and portfolio evolution.
According to Insider Monkey’s Q4 database, 38 hedge funds were bullish on Arista Networks, Inc. (NYSE:ANET), compared to 32 funds in the previous quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital held the biggest stake in the company, with 1.7 million shares worth $258.6 million.
Here is what Artisan Mid Cap Fund has to say about Arista Networks, Inc. (NYSE:ANET) in its Q4 2021 investor letter:
“Arista Networks is the market leader for cloud networking equipment used in data centers for public, private and hybrid cloud deployments. The company’s top line growth has recently been bolstered by 400G deployments—the next generation of tech powering data centers—and further enterprise network penetration as customers migrate away from Cisco (~80% market share vs. ~5% for Arista). While the profit cycle is nicely in motion, we pared our exposure as shares began to approach our PMV estimate.”
2. CME Group Inc. (NASDAQ:CME)
Winton Capital Management’s Stake Value: $16,418,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.99%
Number of Hedge Fund Holders: 55
CME Group Inc. (NASDAQ:CME) is a financial derivatives exchange and capital markets company that operates worldwide. David Harding’s Winton Capital Management reported owning 71,862 shares of CME Group Inc. (NASDAQ:CME) in Q4 2021, worth $16.4 million, representing 0.99% of the total 13F portfolio. The hedge fund increased its position in the company by 28% in the December quarter.
On April 5, UBS analyst Alex Kramm lowered the price target on CME Group Inc. (NASDAQ:CME) to $269 from $275 after its March metrics but kept a Buy rating on the shares. The analyst stated that trading activity in March slowed significantly, and he reduced his Q1 EPS view by $0.11 to $1.97. However, he remains constructive at current levels as the stock’s valuation is still relatively low.
Among the hedge funds tracked by Insider Monkey, 55 funds placed long bets on CME Group Inc. (NASDAQ:CME) in Q4 2021, compared to 64 funds in the prior quarter. The total stakes owned in the fourth quarter equaled $2.72 billion. GuardCap Asset Management held the largest position in the company, with more than 4 million shares worth $927.6 million.
Here is what ClearBridge Investments Select Strategy has to say about CME Group Inc. (NASDAQ:CME) in its Q4 2021 investor letter:
“CME Group, for example, maintains a dominant franchise in electronic commodities and options trading with high incremental margins. Its interest rate trading business had been depressed coming out of the recession, but with a tightening policy environment, it now provides upside optionality that augments robust free cash flow growth and capital return. Willscot Mobile Mini is another compounder that executed well through the pandemic but was not initially recognized for the synergies of its Mobile Mini acquisition. The deal has reduced costs and created greater operating leverage as the company rides the tailwinds of improving industrial production and construction.”
1. Berkshire Hathaway Inc. (NYSE:BRK-A)
Winton Capital Management’s Stake Value: $95,540,000
Percentage of Winton Capital Management’s 13F Portfolio: 5.78%
Number of Hedge Fund Holders: 108
Berkshire Hathaway Inc. (NYSE:BRK-A) is Warren Buffett’s Omaha-based multinational conglomerate holding company. David Harding’s Winton Capital Management held a $95.5 million position in Berkshire Hathaway Inc. (NYSE:BRK-A), which represents 5.78% of the total 13F holdings. It is the largest stock in Harding’s Q4 portfolio.
In December 2021, Berkshire Hathaway Inc. (NYSE:BRK-A)’s full-year revenue came in at $276 billion, compared to $245.5 billion in the last year. Net income more than doubled in 2021, increasing to roughly $90 billion from $42.5 billion in 2020. Berkshire Hathaway Inc. (NYSE:BRK-A)’s cash and short-term investments in 2021 stood at $146.7 billion, up from $138.2 billion in the prior year.
On March 21, Keefe Bruyette analyst Meyer Shields maintained a Market Perform rating on Berkshire Hathaway Inc. (NYSE:BRK-A) after the company announced plans to acquire Alleghany Corporation (NYSE:Y) for $848.02 per share in cash.
You can also take a look at 10 Value Stocks to Buy According to Joel Greenblatt and 10 Oil & Gas Stocks to Invest In According to Rajiv Jain’s GQG Partners.
