In this article, we discuss 5 new stock picks of billionaire David Harding. If you want to see more stocks in this selection, click 10 New Stock Picks of Billionaire David Harding.
5. South Jersey Industries, Inc. (NYSE:SJI)
Number of Hedge Fund Holders: 36
South Jersey Industries, Inc. (NYSE:SJI) is a New Jersey-based provider of energy-related products and services. The company sells natural gas and offers pipeline transportation. David Harding added 158,030 shares of South Jersey Industries, Inc. (NYSE:SJI) to his portfolio in the first quarter of 2022, worth $5.46 million.
On May 4, South Jersey Industries, Inc. (NYSE:SJI) reported earnings for Q1 2022, posting an EPS of $1.25, beating analysts’ estimates by $0.10. Revenue over the period came in at $824.58 million, up 22.29% year-over-year, exceeding market estimates by about $135 million.
According to Insider Monkey’s Q1 data, 36 hedge funds were bullish on South Jersey Industries, Inc. (NYSE:SJI), up from 13 funds in the preceding quarter. Ric Dillon’s Diamond Hill Capital is the biggest shareholder of the company, with 2.5 million shares worth $89.4 million.
Here is what FPA Queens Road Small Cap Value Fund has to say about South Jersey Industries, Inc. (NYSE:SJI) in its Q3 2021 investor letter:
“South Jersey Industries shares fell due in part to the cancellation of the PennEast pipeline. The pipeline, which SJI was to be a partner in, was slated to deliver 1.1 billion cubic feet per day of natural gas from the Marcellus shale region to New Jersey and Pennsylvania. While the regulatory environment in New Jersey has historically been favorable, the state’s role in preventing the PennEast pipeline’s construction is causing us to reassess the regulatory environment there. The company currently pays a 5.5% dividend yield and is expected to continue its long history of slow but steady normalized earnings growth.”
4. Foot Locker, Inc. (NYSE:FL)
Number of Hedge Fund Holders: 21
Foot Locker, Inc. (NYSE:FL) is a New York-based company that operates as an athletic footwear and apparel retailer. David Harding’s Winton Capital Management added Foot Locker, Inc. (NYSE:FL) to its Q1 portfolio by buying 134,870 shares worth $4 million. The company’s Q1 results came in below Street consensus estimates.
On May 18, Foot Locker, Inc. (NYSE:FL) declared a $0.40 per share quarterly dividend, in line with previous. The dividend is payable on July 29, to shareholders of record on July 15. The company delivers a dividend yield of 4.81% as of May 30.
Deutsche Bank analyst Gabriella Carbone on May 23 raised the price target on Foot Locker, Inc. (NYSE:FL) to $32 from $30 and reiterated a Hold rating on the shares. The company reported a “solid” quarter that outperformed the buy-side expectations and lifted its full-year guidance to the upper end of the previously provided range for both comps and earnings, the analyst told investors.
According to Insider Monkey’s Q1 data, 21 hedge funds were bullish on Foot Locker, Inc. (NYSE:FL), compared to 27 funds in the earlier quarter. Jim Simons’ Renaissance Technologies held the largest stake in the company, comprising 913,900 shares worth $27.10 million.
Here is what Miller Value Partners Deep Value Strategy has to say about Foot Locker, Inc. (NYSE:FL) in its Q1 2022 investor letter:
“Finally, Foot Locker (NYSE:FL) came under significant pressure during the quarter, with the stock down more than 50% from its highs and valuation not far from early 2020 lows. Nike continues to place a greater focus on their Direct-to-Consumer business, which will decrease their contribution to Foot Locker’s total sales, retreating to historical averages of 50% by 2023. While a near-term headwind to sales, management plans to offset the lost business by expanding distribution to other leading brands, rolling out larger neighborhood free-standing stores, and expanding two new growth banners (WSS & Atmos). WSS stores will provide an off-mall presence and focus on the rapidly growing and underserved Hispanic market. Atmos will provide Foot Locker with the ability to expand into the Japan and Asia sneaker market with their digitally led business model. These new growth concepts have a combined potential to add more than $1B in sales by 2024. The company’s balance sheet remains very strong with $800M in cash and management is increasing returns to shareholders through raising the dividend by 40% and announcing a $1.2B share buyback (more than 40% of the float at current share prices). With the next 12 to 18 months as a transition period for the company, the share price weakness provides attractive reward/risk investment potential, near 3x Enterprise Value/Earnings Before Income, Taxes, Depreciation, and Amortization (EV/EBITDA) and close to a 30% normalized free cash flow yield.”
3. Select Medical Holdings Corporation (NYSE:SEM)
Number of Hedge Fund Holders: 19
Select Medical Holdings Corporation (NYSE:SEM) is a Pennsylvania-based company that operates critical illness recovery and rehabilitation hospitals in the United States. David Harding acquired 166,528 Select Medical Holdings Corporation (NYSE:SEM) shares in the first fiscal quarter of 2022, worth $3.99 million.
On May 5, Select Medical Holdings Corporation (NYSE:SEM) reported earnings for Q1 2022. The company posted earnings per share of $0.37, beating market estimates by $0.09. The $1.60 billion revenue outperformed estimates by $37.95 million. The company also declared a $0.125 per share quarterly dividend, payable on June 1 to shareholders of record on May 19.
Credit Suisse analyst A.J. Rice on March 16 lowered the price target on Select Medical Holdings Corporation (NYSE:SEM) to $28 from $37 due to the uncertainty behind the company’s labor outlook. The analyst reiterated a Neutral rating on the shares.
According to Insider Monkey’s Q1 data, 19 hedge funds were bullish on Select Medical Holdings Corporation (NYSE:SEM), compared to 22 funds in the preceding quarter. Stephen Dubois’ Camber Capital Management is the largest shareholder of the company, with 1 million shares worth about $24 million.
Here is what Miller Howard Investments has to say about Select Medical Holdings Corporation (NYSE:SEM) in its Q3 2021 investor letter:
“AFTER A METEORIC RISE OVER THE PAST YEAR, small-cap stocks reversed course with the Russell 2000 Index down -4.4% for the quarter. Much of the downdraft was focused on stocks that had done well in the pandemic environment but lost favor with investors who see a recovery on the horizon. Our largest detractors have all benefited from pandemic-driven demand. Lastly, Select Medical (SEM) has also seen strong investment, but its rehabilitation facilities have had a surge of patients from hospitals looking to free beds–a trend that will likely slow as the pandemic ends.”
2. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 40
The Hershey Company (NYSE:HSY) is an American manufacturer of chocolate and non-chocolate confectionery products and pantry items in the United States and internationally. David Harding added The Hershey Company (NYSE:HSY) to his Q1 portfolio by purchasing 16,096 shares worth $3.4 million.
On April 28, The Hershey Company (NYSE:HSY) reported earnings for Q1 2022, posting an EPS of $2.53 and a revenue of $2.67 billion, exceeding market consensus estimates by $0.43 and $179.75 million, respectively. The company declared a $0.901 per share quarterly dividend, in line with previous. The dividend is payable on June 15, to shareholders of the company as of May 20.
RBC Capital analyst Nik Modi on April 29 raised the price target on The Hershey Company (NYSE:HSY) to $237 from $214 and reiterated an Outperform rating on the shares. The company posted “impressive” Q1 results and lifted guidance despite a higher inflation outlook, the analyst told investors in a bullish thesis. He added that if elasticities hold up well through the year, he sees upside for The Hershey Company (NYSE:HSY) stock.
Among the hedge funds tracked by Insider Monkey, 40 funds were bullish on The Hershey Company (NYSE:HSY) at the end of March 2022, compared to 37 funds in the earlier quarter. Cliff Asness’ AQR Capital Management held a prominent position in the company, consisting of 794,475 shares worth $172.10 million.
1. First Horizon Corporation (NYSE:FHN)
Number of Hedge Fund Holders: 44
First Horizon Corporation (NYSE:FHN) is an American bank holding company that operates via Regional Banking, Specialty Banking, and Corporate segments. Its primary subsidiary is First Horizon Bank. David Harding’s hedge fund purchased 515,447 shares of First Horizon Corporation (NYSE:FHN) in Q1 2022, worth $12.10 million.
On April 26, First Horizon Corporation (NYSE:FHN) declared a quarterly dividend of $0.15 per share. The dividend is distributable on July 1, to shareholders of the company as of June 10.
The company reported its Q1 results on April 19, posting earnings per share of $0.38, beating market consensus estimates by $0.03. The revenue of $704 million, however, fell short of analysts’ predictions by $3.92 million.
In Q1 2022, 44 hedge funds reported long positions in First Horizon Corporation (NYSE:FHN), up from 24 funds in the last quarter. Simon Sadler’s Segantii Capital is the leading shareholder of the company, with 10.7 million shares worth $253.19 million.
You can also take a look at 10 Best Micro-Cap Stocks to Buy According to Hedge Funds and Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio.
