In this article, we discuss 5 stocks Canadian investors love. If you want to read about some more Canadian stocks, go directly to 10 Stocks Canadian Investors Love.
5. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 21
Royal Bank of Canada (NYSE:RY) operates as a diversified financial services firm. The company has one of the most solid dividend profiles in the banking business, having consistently paid a dividend to shareholders for the past 32 years. In the last six years, the payouts have registered consistent growth as well. On May 26, the firm declared a quarterly dividend of C$1.28 per share, an increase of close to 7% from the previous dividend of C$1.20 per share. The forward yield was 3.98%.
On May 26, investment advisory National Bank maintained an Outperform rating on Royal Bank of Canada (NYSE:RY) stock and raised the price target to C$148 from C$147. Analyst Gabriel Dechaine issued the ratings update.
At the end of the first quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $855 million in Royal Bank of Canada (NYSE:RY), up from 15 in the previous quarter worth $1 billion.
4. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 24
Enbridge Inc. (NYSE:ENB) operates as an energy infrastructure firm. In early May, the firm announced that it would be building a carbon hydrogen and ammonia production facility in Texas with Humble Midstream. The facility would also be capable of exporting. As part of a push towards lowering carbon emissions, Enbridge hopes to sequester almost 95% of the carbon generated during the production process. The firm is already in discussions with offtake customers in this regard.
On May 9, investment advisory RBC Capital kept an Outperform rating on Enbridge Inc. (NYSE:ENB) stock and raised the price target to C$65 from C$60. Analyst Robert Kwan issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Florida-based firm GQG Partners is a leading shareholder in Enbridge Inc. (NYSE:ENB), with 47 million shares worth more than $2 billion.
3. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 32
Canadian Natural Resources Limited (NYSE:CNQ) is an oil and gas exploration and production firm. On May 5, the firm posted earnings for the first quarter of 2022, reporting earnings per share of C$2.86 and cash flows of around $3 billion from operating activities. In the first quarter, the average natural gas production of the firm was a record 2,006 MMcf/d, an increase of 26% from the previous year.
On June 30, Stifel analyst Michael Dunn maintained a Buy rating on Canadian Natural Resources Limited (NYSE:CNQ) stock and raised the price target to C$115 from C$111. National Bank also has a bullish rating on the shares.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Yacktman Asset Management is a leading shareholder in Canadian Natural Resources Limited (NYSE:CNQ), with 16.9 million shares worth more than $1 billion.
2. Canadian Pacific Railway Limited (NYSE:CP)
Number of Hedge Fund Holders: 41
Canadian Pacific Railway Limited (NYSE:CP) owns and runs a transcontinental freight railway in Canada. The firm is one of the few transport stocks with enhanced exposure to the agriculture sector and also benefits from merger activity that aims to connect the United States, Canada, and Mexico through the rail. If the firm is able to buy Kansas City Southern, it will have access to the US Midwest as well as all major Mexican industrial, energy, and metropolitan hotspots, connecting the Mexican industry to the US and onwards to Canada directly.
On July 6, Susquehanna analyst Bascome Majors maintained a Positive rating on Canadian Pacific Railway Limited (NYSE:CP) stock and lowered the price target to $84 from $91, noting that for rail stocks, “volume recovery is at risk from macro downside or capacity constraints”.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Canadian Pacific Railway Limited (NYSE:CP), with 55 million shares worth more than $4.6 billion.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Canadian Pacific Railway Limited (NYSE:CP) was one of them. Here is what the fund said:
“The other major headwind to relative performance in the quarter was Canadian Pacific Railway Limited (NYSE:CP). The stock has been a strong performer for the Strategy but negative sentiment around its bidding war for U.S. rail operator Kansas City Southern has weighed on the stock since late May. As a result, the cyclical uptick we expected from the company has been masked by the takeover. Indeed, we have been frustrated by the muted performance among Canadian Pacific Railway Limited (NYSE:CP) and other recently added positions in our structural bucket of growth companies with more cyclical business models or that are undergoing a restructuring that should lead to a step change improvement in earnings. As more regions reopen from COVID-19 and spending rebounds, we expect better performance from our structural names, including Airbus and hospitality and food service provider Compass.”
1. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 72
Shopify Inc. (NYSE:SHOP) provides a commerce platform and related services. On June 7, the shareholders of the firm approved a new voting rights plan for Tobi Lutke, the CEO and founder of the firm, that will give him enhanced power at the company. Under the new plan, Lutke will enjoy at least 40% of voting rights under particular conditions, like staying at the company. The holdings of the founder were also classified as a “founder share” that he is not allowed to pass on to anyone else.
On July 7, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Shopify Inc. (NYSE:SHOP) stock but lowered the price target to $560 from $660, noting that foreign exchange headwinds were weighing on large cap internet stocks.
At the end of the first quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in Shopify Inc. (NYSE:SHOP), compared to 86 in the preceding quarter worth $12 billion.
In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:
“We added to the Portfolio’s position in e-commerce company Shopify Inc. (NYSE:SHOP) in the first quarter after a sharp share-price decline. This brought the Portfolio’s weighting in the company to 2%. We believe Shopify provides a uniquely positioned platform, and we like the company’s strategy of continuing to invest in its business in an effort to strengthen its competitive advantages. The market’s affinity for businesses like Shopify Inc. (NYSE:SHOP) may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”
You can also take a peek at 10 Penny Stocks Redditors are Buying in August and 10 Best Nickel Stocks to Buy Now.
