In this article, we discuss 5 new stock picks of billionaire Mario Gabelli . If you want to read about some more stocks in the Gabelli portfolio, go directly to 10 New Stock Picks of Billionaire Mario Gabelli.
5. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) provides energy-related services. The hedge fund of Mario Gabelli entered the second quarter of 2022 with 22,800 shares of Energy Transfer LP (NYSE:ET) in its portfolio worth more than $228,000, representing a minor portion of the total securities.
On August 16, Barclays analyst Theresa Chen maintained an Overweight rating on Energy Transfer LP (NYSE:ET) stock and increased the price target to $14 from $13, noting that there were unique tailwinds within their North American midstream and refining coverage.
At the end of the second quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $598 million in Energy Transfer LP (NYSE:ET), compared to 31 in the previous quarter worth $699 million.
In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Energy Transfer LP (NYSE:ET) was one of them. Here is what the fund said:
“Energy Transfer LP (NYSE:ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Core of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash f low to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”
4. Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN)
Number of Hedge Fund Holders: 58
Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) develops products for neurological and neuropsychiatric diseases, as well as rare disorders. Securities filings show that GAMCO Investors owned 20,212 shares of Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) at the end of June 2022 worth $2.9 million, representing a small portion of the portfolio.
On August 18, Piper Sandler analyst Christopher Raymond downgraded Pharmaceutical Holding Company Ltd. (NYSE:BHVN) stock to Neutral from Overweight with a price target of $149, noting valuation as one of the primary reasons behind the ratings update.
At the end of the second quarter of 2022, 58 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN), compared to 41 in the preceding quarter worth $1.3 billion.
3. Zendesk, Inc. (NYSE:ZEN)
Number of Hedge Fund Holders: 63
Zendesk, Inc. (NYSE:ZEN) develops and provides SaaS solutions for organizations. Regulatory filings show that GAMCO Investors owned 8,988 shares of Zendesk, Inc. (NYSE:ZEN) at the end of June 2022 worth $666,000, representing a small portion of the portfolio.
On July 28, William Blair analyst Arjun Bhatia downgraded Zendesk, Inc. (NYSE:ZEN) stock to Market Perform from Outperform without a price target, noting that the slowdown in the business of the firm was greater than expected.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Light Street Capital is a leading shareholder in Zendesk, Inc. (NYSE:ZEN), with 7.3 million shares worth more than $540 million.
In its Q4 2021 investor letter, Carillon Towers Advisers, an asset management firm, highlighted a few stocks and Zendesk, Inc. (NYSE:ZEN) was one of them. Here is what the fund said:
“Zendesk, Inc. (NYSE:ZEN) provides customer support software solutions. After successfully navigating the early stages of the pandemic in 2020, the firm has seen its stock cool off on the threat of increased competition from low-cost alternatives. We do not believe that the competitive dynamics have been altered. In fact, the company’s annual revenue growth rate has accelerated in 2021 from the second half of 2020. The shares also currently trade at a deep discount to other cloud-based software vendors.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY), together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties. Latest data shows that GAMCO Investors owned more than 93,800 shares of Occidental Petroleum Corporation (NYSE:OXY) at the end of the second quarter of 2022 worth over $5.5 million, representing a minor portion of the portfolio.
On July 26, investment advisory Barclays maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) stock and lowered the price target to $79 from $84. Analyst Jeanine Wai issued the ratings update.
At the end of the second quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $13.8 billion in Occidental Petroleum Corporation (NYSE:OXY), compared to 67 in the previous quarter worth $12.6 billion.
In its Q2 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation (NYSE:OXY) was one of them. Here is what the fund said:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
1. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 69
Twitter, Inc. (NYSE:TWTR) operates as a platform for public self-expression and conversation in real-time. According to the latest filings, GAMCO Investors owned over 9,200 shares of Twitter, Inc. (NYSE:TWTR) at the end of the second quarter of 2022 worth $344,000, representing a very small portion of the portfolio.
On August 24, Rosenblatt analyst Barton Crockett downgraded Twitter, Inc. (NYSE:TWTR) stock to Neutral from Buy and lowered the price target to $37 from $52, noting the firm needed a fast resolution to the whistleblower saga.
At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Twitter, Inc. (NYSE:TWTR), compared to 68 in the preceding quarter worth $2 billion.
In its Q2 2022 investor letter, RGIGA Investment Advisors, an asset management firm, highlighted a few stocks and Twitter, Inc. (NYSE:TWTR) was one of them. Here is what the fund said:
“Early in the second quarter, we sold our Twitter (NYSE:TWTR) shares on the official announcement that Elon Musk would acquire the company at $54.20 per share. Although we typically would wait for what was then a large 7% merger/arb spread to close, we figured in this market environment it would be beneficial to move aside in the event future drama might ensue while building cash in order to opportunistically deploy into better opportunities. During the quarter, we saw the chance to do so and bought shares in four companies.”
You can also take a peek at Why These 10 Stocks Are Trending on Monday and 10 ETFs to Buy and Hold for the Next 10 Years.
