In this article, we discuss the 5 energy stocks climate activist hedge fund Engine No. 1 is buying. If you want to read our detailed analysis of these stocks, go directly to Climate Activist Hedge Fund Engine No. 1 Is Buying These 10 Energy Stocks.
5. Linde plc (NYSE: LIN)
Number of Hedge Fund Holders: 55
Linde plc (NYSE: LIN) is placed fifth on our list of 10 energy stocks climate activist hedge fund Engine No. 1 is buying. The company has interests in the industrial gas business and is headquartered in the United Kingdom. According to the latest filings, Engine No. 1 owned 1,652 shares in the company at the end of the second quarter of 2021 worth $478,000, representing 0.13% of the portfolio.
On August 3, investment advisory Wells Fargo maintained an Overweight rating on Linde plc (NYSE: LIN) stock and raised the price target to $360 from $340, noting that the firm was an earnings growth leader in the sector.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $5.9 billion in Linde plc (NYSE: LIN), up from 43 the preceding quarter worth $4.6 billion.
4. Chevron Corporation (NYSE: CVX)
Number of Hedge Fund Holders: 50
Chevron Corporation (NYSE: CVX) is a California-based integrated oil and gas company. It is placed fourth on our list of 10 energy stocks climate activist hedge fund Engine No. 1 is buying. 13F filings reveal that Engine No. 1 owned 6,168 shares in the company at the end of June 2021 worth $646,000, representing 0.17% of the portfolio.
On July 23, investment advisory Piper Sandler reiterated an Overweight rating on Chevron Corporation (NYSE: CVX) stock and raised the price target to $137 from $126, noting that upstream valuations for the oil sector remained severely discounted.
At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Chevron Corporation (NYSE: CVX), up from 41 in the preceding quarter worth $4.8 billion.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE: CVX) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ: TSLA) is a California-based EV maker with significant interests in the clean energy business. It is ranked third on our list of 10 energy stocks climate activist hedge fund Engine No. 1 is buying. Regulatory filings reveal that Engine No. 1 owned 2,455 shares in the company at the end of the second quarter of 2021 worth $1.6 million, representing 0.45% of the portfolio.
On August 20, investment advisory Wedbush maintained an Outperform rating on Tesla, Inc. (NASDAQ: TSLA) stock with a price target of $1,000, noting that the new Tesla Bot announced by the firm was an “absolute head scratcher” amid rising EV competition.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc. (NASDAQ: TSLA), down from 62 in the previous quarter worth $10 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
2. NextEra Energy, Inc. (NYSE: NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE: NEE) is placed second on our list of 10 energy stocks climate activist hedge fund Engine No. 1 is buying. The firm generates and sells electricity and is headquartered in Florida. According to the securities filings, Engine No. 1 owned 194,867 shares in the company at the end of June 2021 worth $14.2 million, representing 3.93% of the portfolio.
On July 13, investment advisory Credit Suisse assumed coverage of NextEra Energy, Inc. (NYSE: NEE) stock with an Outperform rating and a price target of $85. Maheep Mandloi, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 14 million shares worth more than $1 billion.
1. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 68
Exxon Mobil Corporation (NYSE: XOM) is ranked first on our list of 10 energy stocks climate activist hedge fund Engine No. 1 is buying. The firm has interests in the oil and gas business and operates from Texas. According to the latest filings, Engine No. 1 owned 930,925 shares in the company at the end of June 2021 worth $58 million representing 16.1% of the portfolio.
On July 23, investment advisory Piper Sandler maintained a Neutral rating on Exxon Mobil Corporation (NYSE: XOM) stock and raised the price target to $69 from $63, noting that crude oil tightness was adding momentum to robus free cash flow outlook for energy firms.
At the end of the second quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in Exxon Mobil Corporation (NYSE: XOM), up from 65 in the preceding quarter worth $2.7 billion.
In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE: XOM) was one of them. Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
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