In this article, we will discuss the 5 stocks Dan Loeb’s Third Point is selling. If you want to read our detailed analysis of Loeb’s history, investment philosophy, and hedge fund performance, go directly to Dan Loeb’s Third Point is selling these 10 stocks.
5. Figure Acquisition Corp. I (NYSE:FACA)
Number of Hedge Fund Holders: N/A
Figure Acquisition Corp. I (NYSE:FACA) is a newly established blank check company founded on December 15, 2020, as a Delaware corporation. The company was formed with the goal of conducting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar commercial combination with one or more corporations.
4. Fifth Wall Acquisition Corp. I (NASDAQ: FWAA)
Number of Hedge Fund Holders: N/A
SmartRent, Inc. (NYSE:SMRT) completed its merger with Fifth Wall Acquisition Corp. I (NASDAQ: FWAA), a publicly listed special purpose acquisition company. It stands fourth on the list of 10 stocks Dan Loeb’s Third Point is selling.
3. Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 27
Ferrari N.V. (NYSE:RACE) ranks third on the list of 10 stocks Dan Loeb’s Third Point is selling. The company designs, manufactures and markets high-end sports vehicles.
Exane BNP Paribas analyst Giulio Pescatore downgraded the stock to “Neutral” from “Outperform” and gave a price target of $256. Pescatore predicts 2021 will be the “slowest first year of cyclical recovery in recent history,” lowering his volume forecasts for 2021-2023 to 10 million units by 4%.
Ensemble Capital, an investment management firm, in its second-quarter 2021 investor letter mentioned Ferrari N.V. (NYSE:RACE). Here is what the fund said:
“Ferrari: After posting standout performance in 2020, beating the S&P 500 by over 20%, Ferrari’s share price performance has lagged for much of this year. The main issue this quarter was the company pushing out their medium-term financial targets due to development and production delays caused by COVID, but this only led to a 1% decline in the stock price for the full quarter. While we believe the company did a fantastic job maintaining production in light of COVID, it did not surprise us that some of their longer-term, new model introductions might be delayed by a couple of quarters. While disappointing of course, Ferrari is curating a set of extremely exclusive mechanical works of art and we are much happier seeing them take the time to do things right, rather than rushing to meet a self-imposed financial target.”
2. Equitrans Midstream Corporation (NYSE:ETRN)
Number of Hedge Fund Holders: 27
Equitrans Midstream Corporation (NYSE:ETRN) is placed second on the list of 10 stocks Dan Loeb’s Third Point is selling. It is a US-based natural gas gathering company.
In the second quarter, Equitrans Midstream Corporation’s (NYSE:ETRN) EPS came in at $0.13, missing the estimates by $0.09. However, income investors will applaud as the company declared a quarterly dividend of $0.15 per share, in line with the previous. BofA analyst Chase Mulvehill on September 28 restored coverage of Equitrans Midstream Corporation (NYSE:ETRN) with a “Neutral” rating, and the price target was set at $11.
As of the second quarter of 2021, 27 hedge funds have positions in Equitrans Midstream Corporation (NYSE:ETRN), compared with 28 in the previous quarter.
1. Diversey Holdings, Ltd. (NASDAQ:DSEY)
Number of Hedge Fund Holders: 12
Diversey Holdings, Ltd. (NASDAQ:DSEY) supplies high-quality cleaning, sanitation, and hygiene solutions for the hotel, healthcare, food and beverage, food service, retail, and facility management industries. It stands first on the list of 10 stocks Dan Loeb’s Third Point is selling.
On October 12, Mizuho analyst Christopher Parkinson initiated coverage of Diversey Holdings, Ltd. (NASDAQ:DSEY) with a “Neutral” rating, and the firm gave a price target of $19.
Intermede Investment Partners is Diversey Holdings, Ltd.’s (NASDAQ:DSEY) leading shareholder, with 4.50 million shares. Fund managers decreased their net holdings in Diversey Holdings, Ltd. As of Q2 2021, 12 hedge funds have positions in Diversey Holdings, Ltd. (NASDAQ:DSEY), compared with 21 in the previous quarter.
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