In this article, we discuss 10 stocks that billionaire Steve Cohen is buying in 2022. If you want to see more stocks that were recently added to his portfolio, click Billionaire Steve Cohen is Buying These 5 Stocks in 2022.
Steve Cohen is an American billionaire hedge fund manager and owner of the New York Mets. He founded SAC Capital Advisors in 1992, which was later converted to Point72 Asset Management in 2014. Billionaire Steve Cohen manages a portfolio worth over $25 billion as of the conclusion of the first quarter of 2022. He serves as the president, CEO, and chief investment officer of Point72. As of April 1, the hedge fund oversees $24.4 billion in assets under management, with 14 global offices and more than 1800 employees.
Steven Cohen’s hedge fund specializes in long/short investing strategies, systematized and highly automated trading methods, venture capital, and private equity. His portfolio is concentrated with investments in the information technology, finance, healthcare, energy, and consumer discretionary sectors.
He made additional purchases in 301 stocks during the first quarter of 2022 and opened new positions in 440 companies. The most notable stocks held by billionaire Steve Cohen in 2022 included Booking Holdings Inc. (NASDAQ:BKNG), Amazon.com, Inc. (NASDAQ:AMZN), and Visa Inc. (NYSE:V).
Our Methodology
We used the Q1 2022 portfolio of billionaire Steve Cohen’s Point72 Asset Management for this analysis, selecting 10 new stocks that he purchased during the period. The new securities that qualified for this list were the ones in which Steve Cohen held the biggest stakes in Q1.
Steven Cohen of Point72 Asset Management
Billionaire Steve Cohen is Buying These Stocks in 2022
10. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 50
Target Corporation (NYSE:TGT) is an American general merchandise retailer, offering food assortments, dry grocery, apparel, accessories, home decor products, electronics, and toys. In Q1 2022, billionaire Steve Cohen added 794,997 shares of Target Corporation (NYSE:TGT) to his Point72 Asset Management portfolio, worth $168.7 million, representing 0.66% of the total 13F securities.
Target Corporation (NYSE:TGT) reported its Q1 results on May 18, posting earnings per share of $2.19, missing consensus estimates by $0.87. The revenue of $25.17 billion outperformed analysts’ predictions by $688.71 million.
On May 19, BofA analyst Robert Ohmes reiterated a Buy rating on Target Corporation (NYSE:TGT) but lowered the price target on the stock to $235 from $289 after the company announced Q1 gross margins that dropped 430 basis points year-over-year given higher than anticipated freight and transportation costs, as well as softer sales in multiple categories that led to surplus unsold inventory. While he slashed his estimates on cost challenges primarily in Q2, he believes food inflation should continue to bring traffic and comp sales as Target Corporation (NYSE:TGT) holds competitive positioning in grocery with a robust value proposition.
According to Insider Monkey’s Q1 data, 50 hedge funds were bullish on Target Corporation (NYSE:TGT), up from 49 funds in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held the biggest position in the company, comprising 2.50 million shares worth $530.5 million.
In addition to Booking Holdings Inc. (NASDAQ:BKNG), Amazon.com, Inc. (NASDAQ:AMZN), and Visa Inc. (NYSE:V), elite investors are piling into Target Corporation (NYSE:TGT).
Here is what Nelson Capital Management has to say about Target Corporation (NYSE:TGT) in its Q2 2021 investor letter:
“We added Target (tkr: TGT) to our consumer staples sector. Target Corporation (NYSE:TGT) offers a broad array of products in owned and known brand items at affordable prices. Its omni-channel fulfillment 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.”
9. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 87
Workday, Inc. (NASDAQ:WDAY) is a California-based company that offers enterprise cloud applications, including a suite of financial management applications, cloud spend management solutions, human capital management applications, and Workday applications for planning, analytics, and reporting. Workday, Inc. (NASDAQ:WDAY)’s Q1 revenue grew 22.10% year-over-year to $1.43 billion, topping analysts’ estimates by $9.31 million.
Securities filings for Q1 2022 reveal that Steve Cohen’s Point72 Asset Management acquired 416,578 shares of Workday, Inc. (NASDAQ:WDAY), worth $99.75 million, representing 0.39% of the total 13F holdings.
On May 27, DA Davidson analyst Robert Simmons maintained a Buy rating on Workday, Inc. (NASDAQ:WDAY) but lowered the price target on the shares to $220 from $250 after its Q1 earnings miss. The company’s management is in denial about the macro environment pushing out a few deals, the analyst told investors, and continues to hire new employees at a strong pace. Workday, Inc. (NASDAQ:WDAY) expects the deals in question to conclude later this year. While the analyst continues to view company fundamentals positively, he is also monitoring for any indications of future trouble.
Among the hedge funds tracked by Insider Monkey, Workday, Inc. (NASDAQ:WDAY) was found in 87 public stock portfolios at the end of March 2022, up from 74 in the prior quarter. Stephen Mandel’s Lone Pine Capital is the largest shareholder of the company, with 5.12 million shares worth $1.2 billion.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Workday, Inc. (NYSE:WDAY) in its Q4 2021 investor letter:
“We believe the weakness created an opportunity for us to add to an exceptionally high-quality payments franchise with an attractive growth and free cash flow profile and little credit or interest rate exposure. It also supported our efforts to maintain diversified IT exposure in a narrowing market; additions to our software-as-a-service (SaaS) holding Workday during the quarter also bolstered this diversification, in which we seek to balance exposure to more widely owned mega cap names…”
8. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 37
Shell plc (NYSE:SHEL) is a London-based energy and petrochemical company that operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. Shell plc (NYSE:SHEL) distributes its products in Europe, Asia, Oceania, Africa, the United States, and the rest of the Americas.
On May 5, Shell plc (NYSE:SHEL) reported earnings for Q1 2022, posting an EPS of $2.40, beating market estimates by $0.21. The revenue grew 51.27% year-over-year to $84.20 billion, surpassing analysts’ estimates by $39.36 billion. The company also declared a $0.50 per share quarterly dividend, a 4.2% increase from its prior dividend of $0.48. The dividend is payable on June 27, to shareholders of record on May 20. Shell plc (NYSE:SHEL) delivers a dividend yield of 3.28% as of May 30.
Morgan Stanley analyst Martijn Rats on May 11 raised the price target on Shell plc (NYSE:SHEL) to 2,860 GBp from 2,570 GBp and kept an Overweight rating on the shares.
According to Insider Monkey’s Q1 data, 37 hedge funds were bullish on Shell plc (NYSE:SHEL), with collective stakes worth $5.6 billion, compared to 41 funds in the earlier quarter, holding stakes in the company valued at $2.6 billion. Ken Fisher’s Fisher Asset Management is the leading shareholder of Shell plc (NYSE:SHEL), with 19.5 million shares worth $1.05 billion.
Here is what Third Point Management has to say about Shell plc (NYSE:SHEL) in its Q1 2022 investor letter:
“We have continued to add to our position in Shell, as it trades at the same deeply discounted multiple today that it did last year due to a move up in commodity prices. We are engaged in discussions with management, board members, and other shareholders, as well as informal talks with financial advisors. We have discussed various alternatives with the aim of both increasing shareholder value and allowing Shell to effectively manage the energy transition. We have reiterated our view that Shell’s portfolio of disparate businesses ranging from deep water oil to wind farms to gas stations to chemical plants is confusing and unmanageable. Most investors we have discussed this with agree that the company would be more successful over the long term with a different corporate structure. Discussions among the parties have been constructive and will be ongoing since stakeholders clearly see these corporate changes as instrumental, particularly if Shell wishes to become a leader in the energy transition rather than be left behind as a tarnished legacy brand.
Beyond our discussions around corporate structure, there have been two important developments since our last update. First, Shell announced a plan to redomicile its headquarters to the UK and create a single shareholder class. This move allows greater flexibility to modify its portfolio (either through asset sales or spin-offs) and allows for a more efficient return of capital, specifically via share repurchases. Second, fundamental and geopolitical events have highlighted the strategic importance of reliable energy supplies, especially in Europe. Shell’s LNG business, the largest in the world outside of Qatar, will play a critical role in ensuring energy security for Europe. In our view, the value of this business has increased dramatically since our original investment.
While Shell continues to trade at a large discount to its intrinsic value, with proper management we believe the company can simultaneously deliver shareholder returns, reliable energy and decarbonization of the global economy. We look forward to continued engagement with management and other shareholders and to more strategic clarity from the Company.”
7. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 61
Oracle Corporation (NYSE:ORCL) is an American multinational firm that offers enterprise information technology solutions worldwide. Billionaire Steve Cohen’s hedge fund purchased 1.11 million shares of Oracle Corporation (NYSE:ORCL) in Q1 2022, worth $91.8 million.
On May 23, Jefferies analyst Brent Thill lowered the price target on Oracle Corporation (NYSE:ORCL) to $75 from $80 and kept a Hold rating on the shares. The analyst has trimmed forecasts for 28 software companies he covers on the back of economic headwinds and the looming risk of recession. The new price targets are 25% lower and there could still be downside to multiples if fundamentals weaken further, he told investors.
According to Insider Monkey’s database, 61 hedge funds were bullish on Oracle Corporation (NYSE:ORCL) at the end of the first quarter of 2022, up from 57 funds in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest shareholder of the company, with about 26 million shares worth $2.14 billion.
Here is what ClearBridge Large Cap Value Strategy has to say about Oracle Corporation (NYSE:ORCL) in its Q3 2021 investor letter:
“While the information technology (IT) sector in the benchmark stalled amid rising rates, our holdings outperformed in relative terms, helped in part by a strong quarter from Oracle, the dominant provider of on-premise database software for large enterprises globally and an increasingly viable cloud competitor. Solid quarterly results, raised guidance, healthy underlying metrics and an attractive valuation contributed to strong performance during the period.”
6. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 109
Netflix, Inc. (NASDAQ:NFLX) is an American subscription streaming and entertainment services company. Billionaire Steven Cohen’s Point72 Asset Management acquired 230,650 shares of Netflix, Inc. (NASDAQ:NFLX) in the first quarter of 2022, worth $86.3 million.
Netflix, Inc. (NASDAQ:NFLX) posted its financial results for Q1 2022, reporting earnings per share of $3.53, beating estimates by $0.61. The revenue of $7.87 billion, however, fell short of analysts’ predictions by $75.56 million.
On May 24, Citi analyst Jason Bazinet observed that once Netflix, Inc. (NASDAQ:NFLX)’s subscriber base started to shrink, investors stopped seeing the firm as a growth stock, and given its lack of free cash flow, value investors are unsure how to categorize the company. “As such, Netflix’s equity does not have a natural investor base”, said the analyst. He believes Netflix, Inc. (NASDAQ:NFLX) has two options – introduce a lower priced advertising tier or monetize account sharing. He kept a Buy rating and a $295 price target on the stock.
Among the hedge funds tracked by Insider Monkey, 109 funds were long Netflix, Inc. (NASDAQ:NFLX) at the end of Q1 2022, compared to 113 funds in the last quarter. Bill Ackman’s Pershing Square held a significant stake in the company, comprising 3.10 million shares worth $1.16 billion.
Like Booking Holdings Inc. (NASDAQ:BKNG), Amazon.com, Inc. (NASDAQ:AMZN), and Visa Inc. (NYSE:V), Netflix, Inc. (NASDAQ:NFLX) is a notable pick of billionaire Steve Cohen in 2022.
Here is what ClearBridge Investments has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q1 2022 investor letter:
“After being a prime beneficiary of increased viewing patterns during the stay-at-home period of COVID-19, Netflix is recalibrating what a normal growth trajectory will look like as global economies fully reopen. The stock fell sharply after the company modestly reduced its net subscriber additions for the current quarter, calling into question its ability to continue to deliver double-digit subscriber growth.
We believe one of our edges as active managers is our long-term orientation and willingness to be both early and patient with additions to the portfolio. With Netflix, we remain convinced that our thesis for owning the stock is intact. While some fear the U.S. streaming market is becoming saturated, Netflix’s penetration of global broadband homes is still less than 50%, a figure that doesn’t even include the opportunity to attract more mobile-only smartphone users.”
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Disclosure: None. Billionaire Steve Cohen is Buying These 10 Stocks in 2022 is originally published on Insider Monkey.
