5 Stocks to Buy According to Kevin McCarthy’s Breakline Capital

1. Dell Technologies Inc. (NYSE:DELL)

Breakline Capital’s Stake Value: $8,829,000
Percentage of Breakline Capital’s Portfolio: 13.55%
Number of Hedge Fund Holders: 59

Dell Technologies Inc. (NYSE:DELL) is a holding company that provides information technology hardware, software, and service solutions. On June 7, Dell Technologies Inc. (NYSE:DELL) announced a quarterly dividend of $0.33 per share. The stock’s dividend yield, as of June 11, came in at 2.58%.

On May 31, Barclays analyst Tim Long maintained an Equal Weight rating on Dell Technologies Inc. (NYSE:DELL), raising his price objective to $54 from $53. In a research note to investors, Long stated that Dell Technologies Inc. (NYSE:DELL) exceeded expectations in the first quarter due to greater ISG performance and higher margins.

59 hedge funds in our database held stakes in Dell Technologies Inc. (NYSE:DELL) at the end of the first quarter, compared to 62 funds in the previous quarter. At the end of Q1 2022, Breakline Capital held 175,908 shares in Dell Technologies Inc. (NYSE:DELL), valued at over $8.83 million. The company represented 13.55% of Kevin McCarthy’s portfolio. The hedge fund upped its position in Dell Technologies Inc. (NYSE:DELL) by 1% or 1,288 shares.

Third Point Management, in its Q3 2021 investor letter, mentioned Dell Technologies Inc. (NYSE:DELL) and discussed its stance on the firm. Here is what the fund said:

“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”

You can also take a peek at 10 Stocks to Buy According to Matthew Hulsizer’s PEAK6 Capital Management and 10 Stocks to Buy According to John Rogers’ Ariel Investments.

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