In this article, we take a look at 5 stocks to sell according to billionaire James Dinan. If you want to see our detailed analysis of James Dinan’s history, investment philosophy, and hedge fund performance, go directly to 10 Stocks to Sell According to Billionaire James Dinan.
5. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 66
McDonald’s Corporation (NYSE:MCD) operates and franchises McDonald’s restaurants in the United States and internationally. The company was founded in 1940 and is based in Chicago, Illinois. Billionaire James Dinan let go of all his shares in the restaurant company as the third quarter of 2021 came to an end.
On November 9, 2021, Credit Suisse analyst Lauren Silberman raised her price target on McDonald’s Corporation (NYSE:MCD) to $281 from $271 and reiterated an Outperform rating on the shares.
For the third quarter of 2021, McDonald’s Corporation (NYSE:MCD) reported earnings per share of $2.76, beating expert estimates by $0.29. The infamous fast-food brand’s revenue also went up by 14.46% year-over-year and was valued at $6.20 billion, beating revenue estimates by $158.29 million.
By the end of the second quarter of 2021, 66 hedge funds out of the 873 tracked by Insider Monkey held stakes in McDonald’s Corporation (NYSE:MCD) worth more than $2.71 billion. This is compared to 67 hedge funds in the first quarter that had stakes of approximately $3.78 billion in the company.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 78
Intel Corporation (NASDAQ:INTC) is involved in the design, manufacture, and marketing of essential technologies for the cloud, smart, and connected devices for retail, industrial, and consumer uses worldwide. The company operates through DCG, IOTG, Mobileye, NSG, PSG, CCG, and All Other segments. Mr. Dinan sold all shares of Intel Corporation (NASDAQ:INTC) by the end of the third quarter of 2021.
By the end of the second quarter of 2021, 78 hedge funds including York Capital Management held stakes in Intel Corporation (NASDAQ:INTC). The total value of these stakes amounted to $6.76 billion. This is compared to 83 positions in the first quarter of 2021, with stakes worth $7.61 billion.
This November, Northland analyst Gus Richard upgraded Intel Corporation (NASDAQ:INTC) to Market Perform from Underperform and gave it a $49 price target.
Alger, an investment management firm, shared its insights on Intel Corporation (NASDAQ:INTC) in its “Alger Spectra Fund” first quarter 2021 investor letter. Here’s what the firm had to say:
“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is
deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”
3. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 66
Target Corporation (NYSE:TGT) operates as a general merchandise retailer in the United States.
Dinan sold his entire stake in the retailer in the third quarter.
Nelson Capital Management, an investment management firm, published its second-quarter 2021 investor letter in which it mentioned Target Corporation (NYSE:TGT). Here’s what the experts at Nelson Capital Management had to say:
“We added Target (tkr: TGT) to our consumer staples sector. Target offers a broad array of products in owned and known brand items at affordable prices. Its omnichannel fulfilment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target is an attractive holding.”
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 156
Mastercard Incorporated (NYSE:MA) primarily functions as a technology company that provides transaction processing and other payment-related products and services in the United States and internationally. Mastercard Incorporated (NYSE:MA) was founded in 1966 and is based in New York.
On November 15, Mizuho analyst Dan Dolev raised his price target on Mastercard Incorporated (NYSE:MA) from $450 to $465 and reiterated a Buy rating on the shares.
By the end of the second quarter of 2021, Mr. Dinan’s owned a little over 9000 shares of Mastercard Incorporated (NYSE:MA) which were worth $3.42 million and accounted for 0.38% of York Capital Management’s 13F portfolio. Other than York Capital Management, there were 155 other hedge funds present in Insider Monkey’s database that held stakes of $17.09 billion in the company.
However, in the third quarter, Dinan exited Mastercard by selling his entire stake in the company.
L1 Capital, an investment management firm, published its ‘L1 Capital International Fund’ third quarter 2021 investor letter in which it shared its view on whether or not Mastercard Incorporated (NYSE:MA) is a smart long-term investment. Here’s what the firm thinks:
“Mastercard returned to top 10. We have held Mastercard since inception of the Fund. Over the 6 weeks to 30 September 2021, Mastercard’s share price retreated 10% and we took advantage of what we believe will be a short-term pullback in the share price to add to our investment. Recent weakness in Mastercard’s share price is most likely due to concerns about disintermediation and other pressures caused by growth in ‘Buy now, Pay later’ and other new payment offerings, as well a general market rotation away from higher growth companies in favour of more cyclical businesses.”
1. Visa Inc (NYSE:V)
Number of Hedge Fund Holders: 162
Visa Inc (NYSE:V) operates as a payments technology company worldwide and is a well-known rival of Mastercard Incorporated (NYSE:MA). The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.
Visa Inc (NYSE:V) reported its earnings for the fiscal fourth quarter of 2021 that ended in September. The company’s revenue was reported to be $6.56 billion, up 28.58% year over year, beating estimates by $45.89 million. Visa Inc (NYSE:V) reported earnings per share of $1.62 and beat estimates by $0.08.
On the 27th of October, 2021, JPMorgan analyst Tien-tsin Huang raised his price target on Visa Inc (NYSE:V) to $277 from $267 and reiterated an Overweight rating on the shares in light of the company’s fiscal fourth-quarter results.
L1 Capital mentioned Visa Inc (NYSE:V) in its third-quarter 2021 investor letter, here’s what it had to say:
“In our view, the payment network company, Visa, remain very well positioned to participate in an ever-expanding market for electronic payments. In time, ‘Buy now, Pay Later’ may have a modest impact on Visa’s transaction volumes, however in aggregate, we believe it will have the greater effect of supporting growth in electronic payments more broadly. Nearer term, we believe the recovery in international travel as the world gradually normalises and learns to live with COVID-19 will be materially positive for Visa’s financial performance. eCommerce will also remain a positive key driver for Visa growth.”
You can also take a peek at Billionaire James Dinan’s Top 10 Stock Picks and 10 Best Dividend Stocks to Buy According to Billionaire James Dinan.
