This article discusses the three stocks that Dan Loeb is buying for the rest of 2022. If you want to know about the fund’s journey, Mr. Dan Loeb’s career, and more about Dan Loeb’s 13F portfolio, please go directly to Dan Loeb is Buying These 7 Stocks for the Rest of 2022.
3. The Walt Disney Company (NYSE:DIS)
Third Point’s Stake Value: $94.400 million
Percentage of Third Point’s 13F Portfolio: 2.23%
Number of Hedge Fund Holders: 109
The Walt Disney Company’s (NYSE:DIS), headquartered in Burbank, California, is a global conglomerate of media and entertainment companies with a market capitalization of $209.98 billion. Since the start of the year, The Walt Disney Company’s (NYSE:DIS) returns have decreased by 26.52%, and over the past 12 months, they have decreased by 38.05% as of September 9.
After losing the broadcast rights to a well-known Indian cricket league earlier this year, Walt Disney Co. has now reached an agreement to show four years’ worth of international cricket matches to its Indian subscribers. The ICC announced on August 27 that Disney Star, the company’s worldwide streaming brand, has secured the contract for Indian TV and digital rights for both men’s and women’s International Cricket Council events through the end of 2027.
Moreover, in the most recent quarter, The Walt Disney Company’s (NYSE:DIS) announced better-than-anticipated subscriber counts for its Disney+ streaming service, escaping the slowdown that beset streaming rival Netflix Inc. Disney claimed 7.9 million additional Disney+ subscribers during the company’s fiscal second quarter, bringing the total to 137.7 million customers, up from 129.8 million the previous quarter. FactSet’s survey of analysts had predicted that the platform would gain 5.2 million net new customers, for a total of approximately 135 million.
In its Q2 2022 investor letter, Oakmark Fund mentioned The Walt Disney Company (NYSE:DIS) and explained its insights for the company. Here is what the fund said:
“Disney (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”
2. Colgate-Palmolive Company (NYSE:CL)
Third Point’s Stake Value: $159.078 million
Percentage of Third Point’s 13F Portfolio: 3.76%
Number of Hedge Fund Holders: 55
Colgate-Palmolive Company (NYSE:CL) is the newest addition to Dan Loeb’s portfolio. Third Point acquired 1.98 million shares of Colgate-Palmolive Company (NYSE:CL) during the most recent quarter, valuing $159 million. The company announced its latest quarterly earnings results on July 29, reporting an EPS GAAP actual of $0.72 and revenue of $4.48 billion, both above Wall Street expectations. A total of 55 hedge funds are holding a stake in Colgate-Palmolive Company (NYSE:CL) during Q2 as compared to 50 hedge funds in the previous quarter. The stock has gained a 3.30% value during the past six months.
Lauren Lieberman, an analyst with Barclays, increased his target for Colgate-Palmolive Company (NYSE:CL) from $71 to $74 and maintained an Equal Weight rating on the shares. According to Lieberman, Colgate’s better-than-anticipated organic sales growth in Q2 has allowed the company to increase its full-year guidance range.
In its Q2 2022 investor letter, First Eagle Investments Global Fund mentioned Colgate-Palmolive Company (NYSE:CL) and explained its insights for the company. Here is what the fund said:
“Shares of consumer staples giant Colgate-Palmolive have performed well as investors rotated into more recessionary-resilient defensive stocks amid the broader selloff during the second quarter. The company raised revenue guidance for 2022 but lowered its margin outlook because of higher costs for raw materials, packaging and logistics; we believe that the company’s size and market share provide it with options to mitigate the inflation challenges it faces. We continue to like Colgate- Palmolive’s dividend and previously announced $5 billion stock buyback program.”
1. Antero Resources Corp (NYSE:AR)
Third Point’s Stake Value: $103.992 million
Percentage of Third Point’s 13F Portfolio: 2.46%
Number of Hedge Fund Holders: 64
Antero Resources Corp (NYSE:AR) touched the peak of its popularity among the hedge funds tracked by Insider Monkey during the most recent quarter, as a total of 64 hedge funds are holding a stake in Antero. Dan Loeb’s Third Point acquired 3.39 million shares of Antero Resources Corp (NYSE:AR) during Q2, valuing $103.99 million. Due to its lower valuation and the potential for even higher sustained sales prices, Antero Resources seems to be a reliable long-term natural gas investment.
Risk considerations for Antero in the medium term include the erratic nature of relations between the EU and Russia and uncertainty surrounding the US economy. The stock has gained a 52.28% value during the past six months and 126.06% year to date. As per the latest quarterly earnings report, Antero Resources Corp (NYSE:AR) reported an EPS GAAP actual of $2.29 and brought in revenue valued at $2.20 billion, both above the market consensus.
Analyst Vincent Lovaglio from Mizuho cut his price target for Antero Resources Corp (NYSE:AR) from $53 to $49 while maintaining a Buy rating on the stock. The analyst claims that after the Q2 results, his larger thesis for the exploration and production industry remains valid. According to Lovaglio, Antero Resources Corp (NYSE:AR) represents a reasonably attractive value when compared to the larger market because structural undersupply, driven by multi-year underinvestment, should continue to sustain higher than anticipated commodity prices and better than anticipated cash returns.
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