Hedge funds have been busy in their hunt for profitable stock investments, with several funds making notable additions to their equity portfolio. Carl Icahn, Steven Cohen and Leon Cooperman have made headlines after they revealed their recent trades. Let’s have a look at what they bought and why.
First up is Carl Icahn, who has increased his fund’s holding of Nuance Communications Inc. (NASDAQ:NUAN). According to a recent filing with the Securities and Exchange Commission (SEC), Icahn Capital LP has added approximately 1.38 million shares and took its holding of the stock to more than 60 million shares. This position accounts for 19.2% of the company’s common stock. Nuance Communications Inc. (NASDAQ:NUAN) has a market cap of $4.4 billion and a forward Price to Earnings (P/E) ratio of 11.70. The stock has fallen 38% so far this year and is currently trading at a price of $14.12 per share. The company posted $1.85 billion in revenues for the third quarter, up 12% from Q3 of 2012, but registered a loss of $0.37 per share.
Steven Cohen and SAC Capital are particularly bullish on Move Inc. (NASDAQ:MOVE). According to a filing with the SEC, Cohen has massively increased his fund’s holding of this stock, from 1,939 to 1.98 million shares, which account for 5.1% of the company’s shares outstanding. Move Inc. (NASDAQ:MOVE) has a market cap of $594 million and trades at a massive trailing P/E ratio of 313.44. The forward P/E ratio of 139.09 is an indication that market participants expect the company to grow its profitability and post higher revenues in the near future. Third quarter revenues registered a 19% year-over-year increase to $58.8 million, a sign Move Inc. (NASDAQ:MOVE) is on the right path.
Leon Cooperman has also been busy, with his fund, Omega Advisors, increasing its stake in Atlas Resource Partners, L.P. (NYSE:ARP). In a recent filing with the SEC, Omega revealed ownership of 6.75 million shares, up from 6.59 million previously reported. According the fund’s latest 13F report, Omega Advisors held only 4.8 million shares at the end of September. Atlas Resource Partners, L.P. (NYSE:ARP) stock has been a poor performer, entering a downtrend following the high of $31.97 reached in January 2012. With a current price of $19.98 per share, the company has a market cap of $1.22 billion. Atlas Resource Partners pays an annual dividend of 2.09, a yield of 10.4%. For the third quarter of 2013, the company posted revenues of $91 million and a loss of $0.74 per share.
Mohnish Pabrai still has a thing for Horsehead Holding Corp. (NASDAQ:ZINC). Pabrai has recently made a small addition to his fund’s stake. Dalal Street reported the addition of 30,166 shares in a recent Form 4 filing with the SEC. The fund now owns about 6.4 million shares worth more than $91 million. Horsehead Holding Corp. (NASDAQ:ZINC) has been in an uptrend in 2013, surging 37%. With a current share price of $14.32, the company has a market cap of $721 million and a beta of 2.30, which makes it a volatile stock. Horsehead’s recent financial report revealed third quarter revenues of $86 million, up 14% from last year’s 3rd quarter, and a loss of $0.08 per share.
Nelson Peltz thinks Allegion PLC (NYSE:ALLE), a provider of security solutions, is a worthy investment. His fund, Trian Partners, has initiated a new position by acquiring 5.74 million shares, approximately 5.9% of the company’s shares outstanding. Allegion PLC (NYSE:ALLE) is a spin-off from Ingersoll-Rand PLC (NYSE:IR) and has gone public on December 2nd. The stock has fallen 14% since the IPO and is currently at $42.66 per share. Dave Petratis, Chairman of Allegion, commented:
For more than a century, we have been pioneers in developing products that help keep people safe where they live, work and visit.
This is an opportunity to carry forward the best of Allegion’s heritage, expertise and entrepreneurial roots while becoming bolder at capitalizing on major trends in commercial and residential security. As a global enterprise, we will continue to lead the industry in defining and raising the standards for safety and security everywhere.
Disclosure: none
Recommended reading:
Goldman Capital Management Reduces Stake in Bacterin International Holdings Inc (BONE)
Cannell Capital Raises Holding in Hooper Holmes, Inc. (HH) Even Higher
