In this article, we discuss 5 stocks to sell now according to David Einhorn’s Greenlight Capital. You can see some more stocks sold by Greenlight Capital in the first quarter of 2022 by clicking 10 Stocks To Sell Now According To David Einhorn’s Greenlight Capital.
5. FREYR Battery (NYSE:FREY)
Percentage of Decline in Stake in Q1: 100%
Number Of Hedge Fund Holders: 21
Fueled by hydro and wind energy, FREYR Battery (NYSE:FREY) is a Norway-based company that designs and manufactures high-density lithium-ion batteries for electric mobility, stationary energy storage, and marine and aviation applications.
Earlier this May, FREYR Battery (NYSE:FREY) signed a conditional agreement with Powin Energy Corporation to offtake battery cells produced by FREYR for energy storage system applications in the North American market and beyond.
The EPS for FREYR Battery (NYSE:FREY) in the fiscal third quarter was -$0.30, missing market estimates by $0.20. The company’s stock has fallen 33.41% in the past six months.
Our hedge fund data shows 21 hedge funds holding stakes in FREYR Battery (NYSE:FREY) in the fourth quarter of 2021, with a total stake value of $376.4 million. Sylebra Capital Management was the largest stakeholder for the quarter, holding 12.7 million shares worth over $142 million.
4. EchoStar Corporation (NASDAQ:SATS)
Percentage of Decline in Stake in Q1: 100%
Number Of Hedge Fund Holders: 29
EchoStar Corporation (NASDAQ:SATS) is a global satellite communication and internet services supplier. The company provides services through its Hughes Network Systems and EchoStar Satellite Services business segments. Greenlight Capital built its position in EchoStar Corporation (NASDAQ:SATS) over three quarters through Q2 2021. Although gradually reducing his stake each quarter since, Einhorn sold off the remaining stakes this quarter.
By the end of Q4 2021, Insider Monkey identified 29 hedge funds that had stakes in EchoStar Corporation (NASDAQ:SATS). The total value of these stakes amounted to more than $216.82 million. As of December 31, Jim Simons’ Renaissance Technologies is the leading stakeholder in EchoStar Corporation (NASDAQ:SATS), owning roughly 2.08 million shares worth over $54.75 million.
In its Q1 2022 investor letter, Fiduciary Management Large Cap Equity mentioned EchoStar Corporation (NASDAQ:SATS) and explained its insights for the company. Here is what they had to say:
“We exited our long position in EchoStar after holding it for a year with a 22% IRR. We became concerned that the company is having trouble growing subscribers. We also sold Jack in the Box after almost 2 years with a 55% IRR. We became concerned about focus shifting to a recent acquisition and more challenging earnings comparisons going forward.”
3. Concentrix Corporation (NASDAQ:CNXC)
Percentage of Decline in Stake in Q1: 100%
Number Of Hedge Fund Holders: 23
Next up on the list of stock to dispose of according to David Einhorn is Concentrix Corporation (NASDAQ:CNXC), an American business services company specializing in customer engagement and business performance. The company is a provider of customer experience solutions and optimization, front-and-back office automation, analytics, and customer lifecycle management.
On May 9, Concentrix Corporation (NASDAQ:CNXC) announced that it has reached a definitive agreement to acquire Servicesource International Inc (NASDAQ:SREV) for $1.50 per share in an all-cash transaction valued at approximately $131 million. The transaction is expected to close in the second half of the fiscal year 2022.
According to Insider Monkey’s database, 23 hedge funds reported holding stakes in Concentrix Corporation (NASDAQ:CNXC) at the end of December 2021, with stakes worth $391.3 million. This is compared to 21 funds in the previous quarter that held stakes worth $589.9 million. Lyrical Asset Management, the leading shareholder in Concentrix Corporation (NASDAQ:CNXC) during Q4 2021, held 767,000 shares of the firm valued at roughly $137 million.
2. Cassava Sciences, Inc. (NASDAQ:SAVA)
Percentage of Decline in Stake in Q1: 100%
Number Of Hedge Fund Holders: 7
Cassava Sciences, Inc. (NASDAQ:SAVA) is a clinical-stage biotech firm that is involved in the development of treatments for neurodegenerative diseases, namely Alzheimer’s. Despite reassurances regarding simufilam, an investigational drug meant to treat Alzheimer’s, shares of Cassava Sciences, Inc. (NASDAQ:SAVA) continue to lose value, plummeting 52.34% in the past six months.
Earlier this May, Univest Securities analyst James Jang noted that Cassava Sciences, Inc. (NASDAQ:SAVA) released Q1 results that showed enrollment in the company’s Alzheimer drug clinical trials has increased, although its enrollment still “severely lags” behind the pace of other trials in the space. Jang still keeps a Sell rating and $8 price target on the shares of the company.
At the end of the fourth quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $14 million in Cassava Sciences, Inc. (NASDAQ:SAVA), compared to 10 in the preceding quarter worth $34 million. Among these, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Cassava Sciences, Inc. (NASDAQ:SAVA) with 1 million shares worth more than $46 million.
1. Astra Space, Inc. (NASDAQ:ASTR)
Percentage of Decline in Stake in Q1: 100%
Number Of Hedge Fund Holders: 11
Astra Space, Inc (NASDAQ:ASTR) is a technology company that deals in space services, including satellite launch services and payload deliveries to sun-synchronous and low-inclination orbit missions, based on a proprietary, vertically integrated technology platform.
Despite bouncing back from the launch failure in February with a successful satellite deployment in March, shares of Astra Space, Inc. (NASDAQ:ASTR) seem to be in a downward spiral, dropping by 74.39% in the past six months.
Deutsche Bank analyst Edison Yu lowered the firm’s price target on Astra Space to $6 from $7 and keept a Buy rating on the shares on April 20.
In the fourth quarter of 2021, 11 hedge funds held stakes in Astra Space, Inc. (NASDAQ:ASTR) with a combined worth of $63.5 million. This is down from 13 hedge funds with stakes in the firm in the previous quarter.
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
