5 Stocks to Invest in Now According to Anthony Bozza’s Lakewood Capital

4. Dell Technologies Inc. (NYSE:DELL)

Lakewood Capital Management Stake Value: $116,531,000
Percentage of Lakewood Capital Management’s 13F Portfolio: 4.94%
Number of Hedge Fund Holders: 62

Dell Technologies Inc. (NYSE:DELL) is a computer hardware, software, and services firm that makes servers, desktop PCs, and laptop computers. Toni Sacconaghi, a Bernstein analyst, raised his rating on Dell Technologies Inc. (NYSE:DELL) from ‘Market Perform’ to ‘Outperform’ with a $72 price target on January 11.

Lakewood Capital holds more than 2.07 million shares in Dell Technologies Inc. (NYSE:DELL) worth over $116.53 million, representing 4.94% of its portfolio. The hedge fund boosted its stake in Dell Technologies Inc. (NYSE:DELL) by 3% in the fourth quarter.

Dell Technologies Inc. (NYSE:DELL) is also getting the attention of other smart money, as 62 hedge funds tracked by Insider Monkey reported owning stakes in the company as of the end of the fourth quarter, up from 60 funds a quarter earlier. With approximately 9.48 million shares valued at $532.71 million, Elliott Management is the largest shareholder of Dell Technologies Inc. (NYSE:DELL) among those funds.

In its third quarter 2021 investor letter, Third Point Management mentioned Dell Technologies Inc. (NYSE:DELL). 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.”