In this article, we will take a look at the 5 stocks billionaire David Einhorn just bought and sold. To see more such companies, go directly to 15 Stocks Billionaire David Einhorn Just Bought and Sold.
5. Southwestern Energy Company (NYSE:SWN)
Stake Value: $65,181,186
Greenlight Capital increased its stake in Southwestern Energy Company (NYSE:SWN) by over 9% in the third quarter of 2023. As of the end of September, the fund had a $65 million stake in Southwestern Energy Company (NYSE:SWN).
Out of the 910 hedge funds tracked by Insider Monkey, 44 hedge funds reported owning stakes in Southwestern Energy Company (NYSE:SWN).
Earlier this month Southwestern Energy Company (NYSE:SWN) posted third quarter results according to which the company’s adjusted EPS came in at $0.10, beating estimates by $0.03. Revenue in the quarter fell about 68.3% year over year to $1.44 billion, beating estimates by $80 million.
Southwestern Energy Company (NYSE:SWN)’s management talked about guidance and expectations during Q3 earnings call and said:
“As we look ahead to 2024, we expect new LNG facilities to increase demand throughout the year. However, we believe strip prices are not yet high enough to incentivize production growth. Given this dynamic, we intend to continue optimizing free cash flow and capital investment to meet our dual priorities of progressing towards the $3.5 billion top end of our target debt range, while maintaining the flexibility and optionality in the business. Our unique asset base provides capital allocation flexibility between basins, commodity windows as well as assured firm market access. We will continue to optimize investment with the optionality to add back in the back half of ’24, should market fundamental support. We believe this approach to managing the business in a volatile commodity environment is prudent and will best position SWN to sustainably return capital to shareholders.
Our hedging strategy helps to ensure debt reduction while also providing upside commodity risk exposure, as we move through 2024 and 2025. We continue to target a range of 40% to 60% of natural gas price protection, when entering a new year. Basis protection is also key to commodity risk management. With the physical sales agreements and financial basis hedges, we expect to continue our practice of proactively protecting basis.”
4. The ODP Corporation (NASADQ:ODP)
Stake Value: $74,502,252
Business solutions company The ODP Corporation (NASADQ:ODP) ranks 4th in our list of the stocks bought by billionaire David Einhorn during the third quarter. Greenlight Capital increased its stake in The ODP Corporation (NASADQ:ODP) by 6.49% in the third quarter, concluding the period with a $74 million stake in the company.
3. Kyndryl Holdings, Inc. (NYSE:KD)
Stake Value: $84,380,702
IT infrastructure company Kyndryl Holdings, Inc. (NYSE:KD) ranks 3rd in our list of the top stocks billionaire David Einhorn bought during the third quarter of 2023. Greenlight Capital first bought Kyndryl Holdings, Inc. (NYSE:KD) back in the fourth quarter of 2021. During the third quarter of this year the fund increased its stake in the company by 25%, ending the period with an $84 million stake in Kyndryl Holdings, Inc. (NYSE:KD).
Tourlite Capital Management made the following comment about Kyndryl Holdings, Inc. (NYSE:KD) in its Q2 2023 investor letter:
“Kyndryl Holdings, Inc. (NYSE:KD) spun out of IBM in 2021. Spin-offs by nature reflect management’s intention to unlock shareholder value which may present an asymmetric set-up. Kyndryl’s value lies in management’s ability to work through their focused contracts – infrastructure services that, on average, generate 0% gross margin as a result of reckless bundling under IBM. More importantly, management has demonstrated their confidence in doing so by purchasing shares in the open market. Kyndryl’s latest quarter reflects solid progress; gross margins have expanded by over 200 bps sequentially and more than 300 bps year-over-year. Pre-tax margins on recent signings are in the high single digits. We expect both gross and pre-tax margins to expand as post-signings get recognized from Kyndryl’s backlog. Kyndryl continues to present compelling upside.”
2. CONSOL Energy Inc. (NSYE:CEIX)
Stake Value: $252,216,963
CONSOL Energy Inc. (NSYE:CEIX) has been a rewarding investment for billionaire David Einhorn this year as the stock has gained about 73% year to date through November 18. The hedge fund, however, cut its stake in the high-Btu bituminous thermal and crossover metallurgical coal company by 15% in the third quarter, ending the period with about $252 million stake in CONSOL Energy Inc. (NSYE:CEIX).
As of the end of the second quarter of 2023, 28 hedge funds tracked by Insider Monkey reported owning stakes in CONSOL Energy Inc. (NSYE:CEIX).
Here is what Greenlight Capital has to say about CONSOL Energy Inc. (NYSE:CEIX) in its Q3 2023 investor letter:
“CEIX shares advanced from $67.81 to $104.91 during the quarter, despite no obvious fundamental developments. It was a favorable period for energy stocks (more on that below), and CEIX abandoned its dividend in order to increase its share repurchases. With earnings expected to be over $21 per share in 2023, it is proving to be a challenge for the stock to maintain such a measly P/E multiple in the face of such a large buyback. One can make a great return when a P/E multiple expands from 3x to 5x… might 8x be too much to hope for?”
1. Green Brick Partners, Inc. (NYSE:GRBK)
Stake Value: $512,332,318
David Einhorn’s Greenlight Capital cut its stake in Green Brick Partners, Inc. (NYSE:GRBK) by 25% in the third quarter of 2023, ending the period with about $512 million stake in the company. Green Brick Partners, Inc. (NYSE:GRBK) is still the biggest holding of the hedge fund.
Greenlight Capital made the following comment about Green Brick Partners, Inc. (NYSE:GRBK) in its second quarter 2023 investor letter:
“If you would have told us on January 1 that for the first half of the year, Green Brick Partners, Inc. (NYSE:GRBK)’s stock price would advance 134%, from $24.23 to $56.80, but we were up only 13.1%, we would also want to ask, “How the heck did that happen?”
Putting those two conflicting questions together explains the first half of the year. We had a solid first half result, where GRBK was more than all of the return. The rest of the long portfolio contributed a few percent, the short portfolio struggled and macro was marginally positive.
We also benefitted by increasing net exposure (mostly by reducing shorts) in March, when a few regional banks failed and we assessed that the Federal Reserve would have to favor financial stability and stop fighting the stock market. In the second quarter, other than GRBK, both the long and short portfolios went up with the market. Fortunately, GRBK carried the day…” (Click here to read the full text)
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