In this article, we discuss 5 stocks to sell according to Chase Coleman’s Tiger Global. If you want to see more stocks that were sold recently by the fund, click 10 Stocks to Sell According to Chase Coleman’s Tiger Global.
5. Dynatrace, Inc. (NYSE:DT)
Number of Hedge Fund Holders: 43
Dynatrace, Inc. (NYSE:DT) is a Massachusetts-based company that operates a software intelligence platform for multi-cloud work environments. Chase Coleman added Dynatrace, Inc. (NYSE:DT) to his portfolio in the third quarter of 2019, and in Q4 2021, the billionaire owned a $30 million stake in the company. In Q1 2022, Tiger Global disposed of his position in Dynatrace, Inc. (NYSE:DT) completely.
JMP Securities analyst Erik Suppiger on May 20 slashed the price target on Dynatrace, Inc. (NYSE:DT) to $50 from $80 to account for a “sharp compression” in market multiples but maintained an Outperform rating on the shares after its Q1 earnings beat. The analyst also cited the company extending its relationship with Deloitte, which represents a “key catalyst” for Dynatrace, Inc. (NYSE:DT) since it can use Deloitte as a stepping stone to pursue further partnerships with other global companies.
According to the database of Insider Monkey, 43 hedge funds held bullish positions in Dynatrace, Inc. (NYSE:DT) at the end of March 2022, with collective stakes worth $1.74 billion. Gabriel Plotkin’s Melvin Capital Management held a leading position in the company, comprising 7.2 million shares worth $342.6 million.
Here is what U.S. SMID Company Growth Fund has to say about Dynatrace, Inc. (NASDAQ:DUOL) in its Q3 2021 investor letter:
“Dynatrace outperformed during the quarter as the company reported earnings results that handily beat expectations. The company continues to increase its customer base and has expanded net revenues with existing customers.”
4. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 61
MongoDB, Inc. (NASDAQ:MDB) is a New York-based firm that offers on-demand commercial database servers for enterprise customers. Chase Coleman’s Tiger Global has held a position in MongoDB, Inc. (NASDAQ:MDB) since Q4 2017, except for a minor break in Q4 2018. In the fourth quarter of 2021, Tiger Global held 82,000 shares of the company worth $43.4 million. The hedge fund disposed of its stake in Q1 2022.
Barclays analyst Raimo Lenschow lowered the firm’s price target on MongoDB, Inc. (NASDAQ:MDB) to $330 from $410 and reiterated an Overweight rating on the shares on May 20. The analyst’s software reseller survey results illustrate that demand trends and expectations “took a step back from the prior quarter”. He prefers Intuit, Splunk, and Workday for the off-cycle Q1 earnings.
According to Insider Monkey’s first quarter data, 61 hedge funds placed long calls on MongoDB, Inc. (NASDAQ:MDB), up from 56 funds in the preceding quarter. Alex Sacerdote’s Whale Rock Capital Management is a notable shareholder of the company, with 493,588 shares worth about $219 million.
3. PagerDuty, Inc. (NYSE:PD)
Number of Hedge Fund Holders: 26
PagerDuty, Inc. (NYSE:PD) is headquartered in San Francisco, California, running a digital operations management platform in the United States and internationally. Tiger Global owned a $5.2 million stake in PagerDuty, Inc. (NYSE:PD) in the fourth quarter of 2021, which it sold off completely in Q1 2022.
On March 17, Craig-Hallum analyst Chad Bennett slashed the price target on PagerDuty, Inc. (NYSE:PD) to $45 from $52 given the compression in peer multiples, while maintaining a Buy rating on the shares. The analyst argued that PagerDuty, Inc. (NYSE:PD) is proving that its return of more than 30% growth in mid-2022 was not a result of lenient comps or a demand pull-forward. Rather, it is a sustainable level of growth for the company that puts it on a path towards $1 billion of annual recurring revenue.
In Q1 2022, Cathie Wood’s ARK Investment Management was the biggest shareholder of PagerDuty, Inc. (NYSE:PD), with 10.2 million shares worth $351 million. Overall, 26 hedge funds were bullish on the stock at the end of March 2022, with combined stakes of $673.8 million.
2. XP Inc. (NASDAQ:XP)
Number of Hedge Fund Holders: 31
XP Inc. (NASDAQ:XP) is a Brazilian company that offers financial products and services such as securities brokerage, private pension plans, commercial, and investment banking products. Tiger Global acquired a stake in XP Inc. (NASDAQ:XP) in Q4 2019. The hedge fund sold its $5.7 million position in the company in the first quarter of 2022.
Citi analyst Gabriel Gusan upgraded XP Inc. (NASDAQ:XP) on May 9 to Buy from Neutral with a price target of $26, down from $31, stating that its core performance indicators may have bottomed and also noted what he calls an “appealing valuation” with shares down 53% over the past year.
According to Insider Monkey’s Q1 2022 data, 31 hedge funds were long XP Inc. (NASDAQ:XP), compared to 33 funds in the earlier quarter. Billionaire Andreas Halvorsen’s Viking Global reported a prominent position in the company, with 9.4 million shares worth $284.2 million.
Here is what Harding Loevner Emerging Markets Equity Fund has to say about XP Inc. (NASDAQ:XP) in its Q4 2021 investor letter:
“Shares of another new Brazilian holding, XP, the country’s premier online investment platform, also sold off as tough economic conditions outweighed management’s optimism about prospective growth from new business lines in pensions, credit cards, and loans. Performance was helped by stock selection and our underweight in China.”
1. Duolingo, Inc. (NASDAQ:DUOL)
Number of Hedge Fund Holders: 14
Duolingo, Inc. (NASDAQ:DUOL) is an American company that offers a language-learning website and mobile application. Duolingo, Inc. (NASDAQ:DUOL) was added to Chase Coleman’s Tiger Global portfolio in Q3 2021. In the fourth quarter, the hedge fund owned an approximately $16 million stake in the company, which it discarded entirely in the first quarter of 2022.
Evercore ISI analyst Mark Mahaney observed that Duolingo, Inc. (NASDAQ:DUOL) “posted another Clean Beat & Raise quarter”, after which he removed the stock from the firm’s “Tactical Outperform” list, stating “with the stock up 13% in the after-market, our trading work here is done”. However, he remains bullish on the long-term outlook, and “modestly” boosted estimates after the company’s Q1 results. He maintained a $120 price target and Outperform rating on Duolingo, Inc. (NASDAQ:DUOL) shares on May 13.
According to Insider Monkey’s Q1 data, 14 hedge funds held long positions in Duolingo, Inc. (NASDAQ:DUOL), up from 12 funds in the last quarter. Henry Ellenbogen’s Durable Capital Partners held the largest stake in the company, consisting of 3.2 million shares worth about $309 million.
You can also take a look at 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital and Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio.
