5 Stocks to Buy According to John Rogers’ Ariel Investments

1. Madison Square Garden Entertainment Corp. (NYSE:MSGE)

Ariel Investments’ Stake Value: $506,371,000
Percentage of Ariel Investments’ 13F Portfolio: 4.49%
Number of Hedge Fund Holders: 14

Madison Square Garden Entertainment Corp. (NYSE:MSGE) is a holding corporation that owns and runs Madison Square Garden. The company is divided into two segments – Entertainment and Tao Group Hospitality. In the first quarter earnings published on May 9 by Madison Square Garden Entertainment Corp. (NYSE:MSGE), $460.13 million revenue jumped 114.7% YoY.

On April 21, JPMorgan analyst David Karnovsky lowered his price target for Madison Square Garden Entertainment Corp. (NYSE:MSGE) from $79 to $76 while maintaining a Neutral rating. While the firm is well-positioned for a concert market recovery, Karnovsky warned investors in a research note that there will be some obstacles in the next 6-12 months, including a possibly large rollout for MSG Network and additional Sphere launch/content expenses.

Ariel Investments was the largest shareholder of Madison Square Garden Entertainment Corp. (NYSE:MSGE) in Q1 2022, holding stakes worth over $506.37 million. Overall, 14 hedge funds in Insider Monkey’s database held stakes worth roughly $645.19 million in Madison Square Garden Entertainment Corp. (NYSE:MSGE) in the first quarter of 2022. In the previous quarter, 17 hedge funds held stakes in the New York-based company, valued at $546.63 million.

Baron Funds mentioned Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its Q1 2022 investor letter. Here is what the fund said:

“We recently acquired shares in Madison Square Garden Entertainment Corp. (“MSGE”) at what we believe was a highly discounted average price of only $68 per share. From its peak of $121 per share in March 2021, the stock declined more than 40% due to setbacks in indoor live entertainment amid the COVID-19 resurgence and real estate construction delays. The company owns iconic sports and entertainment real estate venues such as Madison Square Garden, the Chicago Theater, and is building a new state-of-the-art venue in Las Vegas, the MSG Sphere at The Venetian (slated to open in 2023). In addition, MSGE has long-term leases at Radio City Music Hall and the Beacon Theatre, while also maintaining a controlling stake in restaurant group TAO.…” (Click here to see the full text)

You can also take a peek at 10 Stocks to Sell According to Jinghua Yan’s TwinBeech Capital and 10 Best Stocks to Buy Now According to Tom Gayner’s Markel Gayner Asset Management.

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