In this article, we discuss 5 stocks billionaire Dan Loeb is selling in 2022. If you want to see more stocks that the billionaire dumped, click 10 Stocks Billionaire Dan Loeb is Selling in 2022.
5. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 25
Upstart Holdings, Inc. (NASDAQ:UPST) was founded in 2012 and is headquartered in San Mateo, California. The company operates a cloud-based artificial intelligence lending platform in the United States. Dan Loeb added Upstart Holdings, Inc. (NASDAQ:UPST) to his portfolio in the last quarter of 2020. The billionaire held 4 million Upstart Holdings, Inc. (NASDAQ:UPST) shares in Q4 2021, worth $605.2 million. He sold off the shares completely in the first quarter of 2022.
On May 20, Wedbush analyst David Chiaverini lowered the price target on Upstart Holdings, Inc. (NASDAQ:UPST) to $15 from $20 and kept an Underperform rating on the shares. The analyst’s Underperform rating on the stock is based on weakening delinquency and loss trends on recent 2021 vintage securitizations that appear to be deteriorating significantly.
In Q1 2022, 25 hedge funds were bullish on Upstart Holdings, Inc. (NASDAQ:UPST), up from 20 funds in the earlier quarter. Vikram Kumar’s Kuvari Partners held a significant position in the company, with 296,738 shares worth $32.3 million.
Here is what Vulcan Value Partners has to say about Upstart Holdings, Inc. (NASDAQ:UPST) in its Q1 2022 investor letter:
“Upstart Holdings Inc. is an artificial intelligence (AI) and cloud-based lending platform. Upstart’s stock price has been very volatile, but its value has grown steadily. Last year, the company grew its revenue by over 250% organically, which materially exceeded our expectations. In addition, the company continues to generate robust free cash flow and is launching new products to expand its business. Upstart’s value has increased consistently since we first purchased it. Following our discipline, we have added to our position when its stock price has declined and its price to value ratio has improved, and we have reduced our stake when its stock price has risen faster than its value.”
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
The Walt Disney Company (NYSE:DIS) is a multinational entertainment company that operates through segments including Disney Media, Entertainment Distribution, and Disney Parks and Experiences. Dan Loeb’s Third Point held 2 million shares of The Walt Disney Company (NYSE:DIS), worth $309.7 million in Q4 2021. The hedge fund sold out of its position in the company in Q1 2022.
On May 24, Daiwa analyst Jonathan Kees lowered the price target on The Walt Disney Company (NYSE:DIS) to $151 from $201 and kept a Buy rating on the shares. The analyst cited recent contractions in market multiples for slashing the price target but he remains convinced that Disney+ will reach its fiscal 2024 subscriber target.
Among the hedge funds tracked by Insider Monkey, 113 funds held long positions in The Walt Disney Company (NYSE:DIS) at the end of March 2022, up from 111 funds in the last quarter. David Goel and Paul Ferri’s Matrix Capital Management disclosed the biggest stake in the company, comprising 6.33 million shares worth $868.2 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about The Walt Disney Company (NYSE:DIS) in its Q4 2021 investor letter:
“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. Disney announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. Disney has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe Disney is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”
3. Burlington Stores, Inc. (NYSE:BURL)
Number of Hedge Fund Holders: 38
Burlington Stores, Inc. (NYSE:BURL) is a New Jersey-based retailer of branded apparel and accessories in the United States. Dan Loeb’s hedge fund has held a stake in Burlington Stores, Inc. (NYSE:BURL) since Q2 2019. In the fourth quarter of 2021, Third Point owned 1.48 million shares of the company, worth $431.4 million. The fund sold out of its position entirely in Q1 2022.
On April 27, Loop Capital analyst Laura Champine lowered the price target on Burlington Stores, Inc. (NYSE:BURL) to $135 from $175 and reiterated a Sell rating on the shares after the Q1 earnings miss. The analyst maintained a negative view on the company based on her previous observation of understocked stores, particularly in outerwear and branded apparel. She observed that wage inflation is impacting Burlington Stores, Inc. (NYSE:BURL) significantly.
According to Insider Monkey’s Q1 database, 38 hedge funds were bullish on Burlington Stores, Inc. (NYSE:BURL), compared to 39 funds in the preceding quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest shareholder of the company, with 2.3 million shares worth $423.70 million.
Here is what Ariel Investments has to say about Burlington Stores, Inc. (NYSE:BURL) its Q1 2021 investor letter:
“Burlington is a leading off-price retailer offering an assortment of apparel, footwear, home, beauty and toys. Shares have risen as investors are increasingly optimistic the company will benefit from higher consumer spending this year with the US economy expected to reopen. In addition to this cyclical tailwind, we believe the company has several internal drivers and a relatively new CEO is spearheading. These include growing its store footprint through smaller formats (~30,000 square feet versus ~50,000 square feet) as it adapts to the evolving brick-and-mortar retail landscape, and closing its sizable margin gap with peers TJ Maxx and Ross by strengthening its merchant team, purchasing inventory items in-season (reacting to sales trends in real time) and reducing store inventory levels (fewer markdowns, higher merchandise margins).”
2. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 78
Comcast Corporation (NASDAQ:CMCSA) is a Pennsylvania-based company that operates in the media and technology sectors worldwide. The company has five segments – Cable Communications, Media, Studios, Theme Parks, and Sky. Dan Loeb’s Third Point owned 2 million shares of Comcast Corporation (NASDAQ:CMCSA) in the fourth quarter of 2021, worth $100.66 million. The hedge fund dumped the entirety of its stake in Q1 2022.
On April 29, Morgan Stanley analyst Benjamin Swinburne lowered the price target on Comcast Corporation (NASDAQ:CMCSA) to $55 from $60 and kept an Overweight rating on the shares. Despite higher competition in broadband, he continues to see Comcast Corporation (NASDAQ:CMCSA) providing “healthy” EBITDA, EPS, and free cash flow growth, and now at “deeply depressed valuations”, the analyst told investors. While he slashed his net adds outlook, he still views Comcast Corporation (NASDAQ:CMCSA) as “the top pick in an admittedly challenging Cable/Satellite group”, the analyst added.
Among the hedge funds tracked by Insider Monkey, 78 funds were long Comcast Corporation (NASDAQ:CMCSA) at the end of Q1 2022, compared to 80 funds in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the leading shareholder of the company, with 30.10 million shares worth $1.40 billion.
Here is what ClearBridge All Cap Growth Strategy has to say about Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
1. Coupa Software Incorporated (NASDAQ:COUP)
Number of Hedge Fund Holders: 46
Coupa Software Incorporated (NASDAQ:COUP) is an American provider of a cloud-based business spend management platform that connects customers with suppliers around the world. Dan Loeb’s fund added Coupa Software Incorporated (NASDAQ:COUP) to its Q4 2021 portfolio by purchasing 650,000 shares, worth $102.7 million. The hedge fund sold off Coupa Software Incorporated (NASDAQ:COUP) shares completely in Q1 2022.
On April 19, DA Davidson analyst Robert Simmons initiated coverage of Coupa Software Incorporated (NASDAQ:COUP) with a Neutral rating and a $75 price target. The company is the strongest player in the business spend management sector and is on its way to being the market leader, the analyst told investors in a research note.
According to Insider Monkey’s first quarter database, 46 hedge funds were bullish on Coupa Software Incorporated (NASDAQ:COUP), down from 59 funds in the prior quarter. Mick Hellman’s HMI Capital is the largest stakeholder of the company, with more than 2 million shares worth $212.3 million.
Here is what ClearBridge Investments has to say about Coupa Software Incorporated (NASDAQ:COUP) in its Q2 2021 investor letter:
“Within IT, we added positions in Coupa Software, a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”
You can also take a look at Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio and 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital.
