In this article, we discuss the 5 stocks to buy according to billionaire Andreas Halvorsen’s Viking Global. If you want our detailed analysis of these stocks, go directly to 9 Stocks to Buy According to Billionaire Andreas Halvorsen’s Viking Global.
5. Humana Inc. (NYSE:HUM)
Viking Global’s Stake Value: $1,235,430,000
Percentage of Viking Global’s 13F Portfolio: 3.58%
Number of Hedge Fund Holders: 66
Andreas Halvorsen, via Viking Global, holds 2.6 million shares of Humana Inc. (NYSE:HUM), worth $1.23 billion, representing 3.58% of the fund’s 13F portfolio. Humana Inc. (NYSE:HUM) is one of the largest American for-profit health insurance companies.
Humana (NYSE:HUM) declared on February 17 a $0.7875 per share quarterly dividend, a 12.5% increase from its prior dividend of $0.70. The dividend is payable on April 29, to shareholders of record on March 31.
The Defense Health Agency assigned Humana Inc. (NYSE:HUM) a $121.89 million contract on December 22, where the company will make changes to the Military Health System, as required by the 2017 National Defense Authorization Act.
Truist analyst David MacDonald on January 7 lowered the price target on Humana Inc. (NYSE:HUM) to $445 from $520 and kept a Hold rating on the shares. The analyst says his reduced price target reflects the company’s more conservative Medicare Advantage enrollment growth expectations and a lower assumed earnings multiple.
Humana Inc. (NYSE:HUM) announced its Q4 results on February 2, reporting earnings per share of $1.24, beating estimates by $0.08. The $21.05 billion revenue over the period missed estimates by roughly $231 million.
Among the 924 hedge funds tracked by Insider Monkey in the fourth quarter, 66 funds reported owning stakes in Humana Inc. (NYSE:HUM). Harris Associates is the largest Humana Inc. (NYSE:HUM) stakeholder from Q4, with 4.4 million shares worth $2.05 billion.
Here is what Oakmark Equity and Income Fund has to say about Humana Inc. (NYSE:HUM) in their Q1 2021 investor letter:
“The third new purchase was Humana, the industry leader and near pure play in the fastest growing sector of managed care, Medicare Advantage. Each year, more seniors choose Medicare Advantage over traditional Medicare due to the compelling combination of lower costs and expanded benefits. Humana’s scale advantages and focus on senior care allow the company to make targeted investments in its members’ health, resulting in fewer unnecessary hospitalizations and lower chronic care costs. Much of these savings are then reinvested in the health plan, resulting in a continuously improving customer value proposition. The company’s brand also resonates well in the marketplace and has helped drive double-digit annual membership growth over the past decade—well above the rest of the industry. Further, we believe Humana has a long runway ahead as it benefits from an aging population and continued conversion of the approximately 60% of seniors who are still enrolled in traditional Medicare. Yet Humana’s shares are currently trading at a nearly 20% discount to the S&P 500 earnings multiple, which we believe doesn’t give the company enough credit for its durable competitive advantages and strong secular growth outlook.”
4. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Viking Global’s Stake Value: $444,038,000
Percentage of Viking Global’s 13F Portfolio: 1.28%
Number of Hedge Fund Holders: 25
BridgeBio Pharma, Inc. (NASDAQ:BBIO), a biopharmaceutical company manufacturing drugs for genetic diseases and cancers, is one of the top stocks to buy according to billionaire Andreas Halvorsen’s Viking Global. The hedge fund holds a $444 million stake in BridgeBio Pharma, Inc. (NASDAQ:BBIO) as of the fourth quarter of 2021, which accounts for 1.28% of the total 13F securities.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) announced on November 18 that it had gained non-dilutive debt financing of $750 million from a syndicate of lenders, which would allow BridgeBio Pharma, Inc. (NASDAQ:BBIO) to fund its portfolio of more than 30 drug and discovery programs. To pursue commercialization of its drug pipeline and products, BridgeBio Pharma, Inc. (NASDAQ:BBIO) now has access to over $1.2 billion, including cash balance and the debt financing.
25 hedge funds in Insider Monkey’s database of 924 elite funds were long BridgeBio Pharma, Inc. (NASDAQ:BBIO) in Q4, with a total stake value of $799.4 million. Joseph Edelman’s Perceptive Advisors is one of the leading company stakeholders, with 7.1 million shares worth $118.90 million.
H.C. Wainwright analyst Raghuram Selvaraju on December 28 lowered the price target on BridgeBio Pharma, Inc. (NASDAQ:BBIO) to $24 from $88 in light of one of the company’s drug trials failing, though he kept a Buy rating on the shares. Given the trial data, Selvaraju has decreased the probability of approval to 10% from 85%, while also lowering the peak penetration rate and pushing out the the timing of potential approval to 2024.
Here is what Baron Opportunity Fund has to say about BridgeBio Pharma, Inc. (NASDAQ:BBIO) in its Q2 2021 investor letter:
“BridgeBio Pharma, Inc. is a biotechnology company developing drugs that address a host of genetic disorders. Shares fell in the quarter given concerns around increasing competition. While we expect positive results from BridgeBio’s Phase 3 trial for its lead program for TTR amyloidosis, a disease in which toxic proteins build up in the heart and nerves, encouraging updates from Alnylam’s competing drug, Vitrusiran, and more recently, Intellia’s gene editing platform, pressured the stock. We exited our position.”
3. T-Mobile US, Inc. (NASDAQ:TMUS)
Viking Global’s Stake Value: $1,524,938,000
Percentage of Viking Global’s 13F Portfolio: 4.42%
Number of Hedge Fund Holders: 86
T-Mobile US, Inc. (NASDAQ:TMUS) is the second largest American wireless network operator, partly owned by the German telecommunications company, Deutsche Telekom. Viking Global added 29% to its existing position in T-Mobile US, Inc. (NASDAQ:TMUS) during the fourth quarter, holding a total of 13.1 million shares, worth $1.5 billion, representing 4.42% of the firm’s 13F portfolio.
T-Mobile US, Inc. (NASDAQ:TMUS) reported on January 6 that the Q4 new customer count totaled 1.8 million, as compared to estimates of 1.57 million new customers, bringing the company’s total customers to 108.7 million.
To improve its financial synergies and lay out an extensive 5G network around the United States, T-Mobile US, Inc. (NASDAQ:TMUS) announced on January 6 that it has signed a 12 year contract with Crown Castle International Corp. (NYSE:CCI), which will allow T-Mobile US, Inc. (NASDAQ:TMUS) access to telecom towers and small cell locations.
Publishing its Q4 results on February 2, T-Mobile US, Inc. (NASDAQ:TMUS) reported earnings per share of $1.10, exceeding estimates by $1.01.
Daiwa analyst Jonathan Kees initiated coverage of T-Mobile US, Inc. (NASDAQ:TMUS) on December 23 with a Neutral rating and a $128 price target. T-Mobile US, Inc. (NASDAQ:TMUS) has been integrating an older company and execution risks remain high, and the market for 5G network is quite competitive.
Berkshire Hathaway is one of the leading T-Mobile US, Inc. (NASDAQ:TMUS) stakeholders from the 86 hedge funds that were bullish on the stock during the fourth quarter. Warren Buffet’s fund holds 5.2 million T-Mobile US, Inc. (NASDAQ:TMUS) shares worth approximately $670 million.
Here is what ClearBridge Investments has to say about T-Mobile US, Inc. (NASDAQ:TMUS) in its Q1 2021 investor letter:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”
2. General Electric Company (NYSE:GE)
Viking Global’s Stake Value: $1,704,348,000
Percentage of Viking Global’s 13F Portfolio: 4.94%
Number of Hedge Fund Holders: 57
General Electric Company (NYSE:GE) was a new arrival in Andreas Halvorsen’s Viking Global’s portfolio in Q3 2021, and the hedge fund increased its position in the company by 7% in the fourth quarter, holding more than 18 million shares, worth $1.70 billion, representing 4.94% of the total Q4 investments. General Electric Company (NYSE:GE) is an American multinational company focused on the aviation, power, renewable energy, and digital sectors.
On December 10, General Electric Company (NYSE:GE) announced a $0.08 per share quarterly dividend, in line with previous. The dividend was paid on January 25, to shareholders of record on December 21, 2021.
General Electric Company (NYSE:GE) disclosed that it is set to acquire Opus One Solutions Energy, a Canada-based software company helping electric utilities optimize their energy consumption, planning, and market management. The acquisition will enable General Electric Company (NYSE:GE) to get on board with rapid adoption of renewables and distributed energy resources.
Credit Suisse analyst John Walsh upgraded General Electric Company (NYSE:GE) on January 4 to Outperform from Neutral with a $122 price target. The company is separating into three public companies: Energy, Aviation, and Healthcare, and the analyst believes the recent selloff in the shares presents an opportunity to get positive.
Among the hedge funds tracked by Insider Monkey, 57 funds were bullish on General Electric Company (NYSE:GE) in the fourth quarter. Pzena Investment Management is one of the leading General Electric Company (NYSE:GE) shareholders as of December 2021, with a stake worth over $1 billion.
Here is what Vulcan Value Partners has to say about General Electric Company (NYSE:GE) in its Q3 2021 investor letter:
“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated it to more discounted companies.”
1. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Viking Global’s Stake Value: $2,592,479,000
Percentage of Viking Global’s 13F Portfolio: 7.51%
Number of Hedge Fund Holders: 30
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a biotech company based in Massachusetts, specializing in genetics engineering, producing bacteria with industrial applications.
Andreas Halvorsen’s Viking Global held a $2.59 billion stake in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) during the fourth quarter of 2021, which represents 7.51% of the fund’s total 13F securities. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is the largest holding in Viking Global’s Q4 portfolio.
BTIG analyst Mark Massaro on January 6 initiated coverage of Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) with a Buy rating and a $12 price target. McKinsey estimates that the global market for bioengineered, or “synthetic biology” products like those pursued by Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) may reach $2 trillion to $4 trillion annually by 2040 and $3 trillion to 5 trillion by 2050.
Among the 924 hedge funds tracked by Insider Monkey in Q4 2021, 30 funds reported owning stakes worth $4.2 billion in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA).
You can also take a look at 10 Micro-Cap Stocks to Buy According to Cathie Wood and 10 Cheap Growth Stocks to Buy According to Billionaire Steve Cohen.
