In this article, we will take a look at the 5 stocks to sell according to billionaire Dan Loeb. To read our analysis of Dan Loeb’s profile, investment strategy, and 13F holdings, you can go to the 10 Stocks to Sell According to Billionaire Dan Loeb.
5. Microsoft Corporation (NASDAQ:MSFT)
Third Point’s Stake Value in Q1 2022: $154,155,000
Percentage of Third Point’s 13F Portfolio in Q1 2022: 2.00%
Number of Hedge Fund Holders: 258
Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a leading technology company with products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Microsoft Corporation (NASDAQ:MSFT) boasts over 1.4 billion monthly active devices running its flagship operating system, Windows 10 or 11.
Dan Loeb’s Third Point’s held 500,000 shares of Microsoft Corporation (NASDAQ:MSFT), accounting for 2.0% of its 13F portfolio, as of Q1 2022. The hedge fund shed its stake by 69% during Q1 2022, compared to the previous quarter and disposed of the remaining shares in Q2 2022.
On September 20, board of directors of Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.68 per share, reflecting a 10% increase over the previous quarter’s dividend. Following the announcement, Morgan Stanley analyst Keith Weiss said the dividend hike highlights the stock’s “durable high-teens total return profile” when factored along with Microsoft’s high-teens percentage EPS growth. The analyst maintains an ‘Overweight’ rating and a price target of $354 for the shares.
As of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) is the most sought-after stock among the 895 hedge funds tracked by Insider Monkey as 258 of these hedge funds held shares in the software giant, valued at $56 billion. Ken Fisher’s Fisher Asset Management was its largest hedge fund shareholder with ownership of 28.7 million shares valued at $7.4 billion.
4. Zendesk, Inc. (NYSE:ZEN)
Third Point’s Stake Value in Q1 2022: $228,551,000
Percentage of Third Point’s 13F Portfolio in Q1 2022: 2.97%
Number of Hedge Fund Holders: 63
Zendesk, Inc. (NYSE:ZEN) is a service-first customer relationship management company allowing organizations to deliver omnichannel customer service and customize and build apps across the customer journey. It boasts more than 160,000 paid customer accounts across 160 countries and territories.
Dan Loeb’s Third Point’s held 1,900,000 shares of Zendesk, Inc. (NYSE:ZEN), accounting for 2.97% of its 13F portfolio, as of Q1 2022. The hedge fund increased its stake in the company by 46% during the first quarter and exited its entire position in the stock during Q2 2022.
On September 19, Zendesk, Inc. (NYSE:ZEN) shareholders approved the merger agreement for the acquisition of Zendesk, Inc. (NYSE:ZEN) by a consortium led by Hellman & Friedman and Permira after a lengthy strategic review process of the company. The transaction comprises a cash consideration of $77.50 per common share and values the entire equity of the company at $10.2 billion.
As of Q2 2022, 63 of the 895 hedge funds tracked by Insider Monkey held Zendesk, Inc. (NYSE:ZEN) shares valued at $1.9 billion. Glen Kacher’s Light Street Capital is its biggest shareholder.
3. IQVIA Holdings, Inc. (NYSE:IQV)
Third Point’s Stake Value in Q1 2022: $254,331,000
Percentage of Third Point’s 13F Portfolio in Q1 2022: 3.31%
Number of Hedge Fund Holders: 53
Research Triangle Park, North Carolina-based IQVIA Holdings, Inc. (NYSE:IQV) is a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry. It operates in more than 100 countries.
As of Q1 2022, Dan Loeb’s Third Point owned 1,100,000 shares of IQVIA Holdings, Inc. (NYSE:IQV), accounting for 3.31% of the hedge fund’s 13F portfolio. The hedge fund shrunk its stake in the company by 17% in Q1 2022 and dumped the rest of the stake in the second quarter.
On October 6, Barclays analyst Luke Sergott lowered the price target on IQVIA Holdings, Inc. (NYSE:IQV) shares to $215 from $235 but maintained an ‘Overweight’ rating on the shares. The analyst believes there is a potential for guide-downs and misses based on currency fluctuations for the life science tools and diagnostics group.
As of Q2 2022, 53 of the 895 hedge funds tracked by Insider Monkey held IQVIA Holdings, Inc. (NYSE:IQV) shares, valued at a combined total of $2.8 billion. Thomas Steyer’s Farallon Capital was its largest hedge fund shareholder with ownership of 3.2 million shares valued at 697 million.
2. Intuit Inc. (NASDAQ:INTU)
Third Point’s Stake Value in Q1 2022: $348,609,000
Percentage of Third Point’s 13F Portfolio in Q1 2022: 4.53%
Number of Hedge Fund Holders: 75
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform allowing consumers and small businesses to manage their finances, get and retain customers, save money, pay off debt and do their taxes with ease, among other solutions. Its platforms include TurboTax, Credit Karma, QuickBooks, and Mailchimp and serve over 100 million customers.
Intuit Inc. (NASDAQ:INTU) was ranked #5 on Third Point’s 13F portfolio based on its weight of 4.53%, as of Q1 2022. The hedge fund held 725,000 shares of Intuit Inc. (NASDAQ:INTU), 37% less than the number of shares held at the end of the previous quarter. The hedge fund exited its entire position in the stock during Q2 2022.
In August, Intuit Inc. (NASDAQ:INTU) released its financial results for the quarter ended July 31, 2022. Its total revenue decreased by 6% y-o-y to $2.4 billion, while it reported a net loss of $56 million. It reported a normalized EPS of $1.10 for the quarter, $0.12 more than the analyst consensus. The company also declared a quarterly cash dividend of $0.68 per share.
On October 3, JPMorgan analyst Mark Murphy downgraded Intuit Inc. (NASDAQ:INTU) shares to ‘Neutral’ from ‘Overweight’ with a $360 price target.
As of Q2 2022, 75 of the 895 hedge funds tracked by Insider Monkey held Intuit Inc. (NASDAQ:INTU) shares valued at a combined total of $5.4 billion. Terry Smith’s Fundsmith LLP was its largest hedge fund shareholder with ownership of 2.4 million shares valued at $914 million.
1. S&P Global Inc. (NYSE:SPGI)
Third Point’s Stake Value in Q1 2022: $393,773,000
Percentage of Third Point’s 13F Portfolio in Q1 2022: 5.12%
Number of Hedge Fund Holders: 84
S&P Global Inc. (NYSE:SPGI) is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
As of Q1 2022, Dan Loeb’s Third Point owned 960,000 shares of S&P Global Inc. (NYSE:SPGI), accounting for 5.12% of its 13F portfolio. The hedge fund shed 4% of its stake in Q1 2022, as compared to the previous quarter and exited its remaining position in the stock during Q2 2022.
In August, S&P Global Inc. (NYSE:SPGI) released its financial results for the second quarter of 2022. Its total revenues increased by 42% y-o-y to $3.0 billion, while its net income increased by 20% y-o-y to $1.0 billion. It reported a normalized EPS of $2.81 for the quarter, missing the consensus by $0.12.
On September 28, the board of directors of S&P Global Inc. (NYSE:SPGI) declared a regular quarterly cash dividend of $0.85 per common share. The company has paid regular dividends since 1937 and has increased its dividends annually for at least the last 49 years.
As of Q2 2022, S&P Global Inc. (NYSE:SPGI) shares were held by 84 of the 895 hedge funds tracked by Insider Monkey, with a total value of $7.2 billion. Chris Hohn’s TCI Fund Management was its largest hedge fund shareholder with ownership of 8.8 million shares valued at $3.0 billion.
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