In this article, we discuss the 5 stocks that insiders are buying the dip on. If you want to read about some more stocks that insiders are buying the dip on, go directly to Insiders Are Buying the Dip on These 10 Stocks.
5. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders in Q1 2022: 99
Number of Hedge Fund Holders in Q4 2021: 84
Decrease in Share Price Year-to-Date (through July 26th): 27.26%
Return since July 26th: 17.0%
Bank of America Corporation (NYSE:BAC) provides banking and financial products. On July 18, the company posted earnings for the second quarter of 2022, reporting earnings per share of $0.73, missing market estimates by $0.02. The revenue over the period was $22.7 billion, up over 5% compared to the revenue over the same period last year but missing expectations by $90 million. However, despite the earnings misses, the firm raised the dividend by 5% to $0.22 per share. The forward yield was 2.64%.
On July 14, RBC Capital analyst Gerard Cassidy maintained an Outperform rating on Bank of America Corporation (NYSE:BAC) stock and lowered the price target to $40 from $45, backing the diversified business model of the firm to navigate through uncertain times.
At the end of the first quarter of 2022, 99 hedge funds in the database of Insider Monkey held stakes worth $45 billion in Bank of America Corporation (NYSE:BAC), compared to 84 in the previous quarter worth $47 billion.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:
“We first invested in Bank of America Corporation (NYSE:BAC) during the second quarter of 2013. During our near decade as investors, Bank of America closed the chapter on the legacy issues from acquired Countrywide, including mortgage write-downs and substantial legal charges. In addition, it successfully turned the Merrill Lynch franchise into one of the leading U.S. brokerage and advisory firms. Thanks to what we consider to be a strong management team led by CEO Brian Moynihan, the bank went through years of simplification, improved its cost structure and efficiency ratio, and reduced risk. While we believe Bank of America Corporation (NYSE:BAC) remains a much-improved market leader, we decided to exit our position and use the proceeds to invest in Brookfield Asset Management.”
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders in Q1 2022: 110
Number of Hedge Fund Holders in Q4 2021: 107
Decrease in Share Price Year-to-Date (through July 26th): 28.73%
Return since July 26th: 20.3%
JPMorgan Chase & Co. (NYSE:JPM) is a financial services firm. On July 20, news publication Financial Times reported that the company had committed to a significant chunk of capital to keep self-funded leveraged loans on the balance sheet. The move is part of a larger plan by the bank to hold on to underwriting leveraged loans and high-yield bonds for syndication. In line with this, the firm has also made a new business unit that will look at extending loans to business clients without an intermediary.
On July 15, RBC Capital analyst Gerard Cassidy maintained an Outperform rating on JPMorgan Chase & Co. (NYSE:JPM) and lowered the price target to $130 from $155, appreciating the second quarter core bank earnings of the firm.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in JPMorgan Chase & Co. (NYSE:JPM) with 7.7 million shares worth more than $1 billion.
In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:
“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase & Co. (NYSE:JPM) detracted from performance due to the company’s increased expense guidance, announced in January.”
3. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders in Q1 2022: 113
Number of Hedge Fund Holders in Q4 2021: 111
Decrease in Share Price Year-to-Date (through July 26th): 33.98%
Return since July 26th: -5.1%
The Walt Disney Company (NYSE:DIS) operates as an entertainment company. The shares of the firm have risen in the past few days amid reopening news from China and reports that the company plans to raise the cost of the popular ESPN+ streaming service by nearly 43%. Per the report, first published by the Sports Business Journal, the company will raise the cost to $9.99 per month from $6.99 per month. The increase is due to the increase in cost of sports rights and will be applicable by late August.
On July 27, Evercore ISI analyst Vijay Jayant maintained an Outperform rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $130 from $150, noting that the firm had a credible streaming strategy and a synergized growth story.
At the end of the first quarter of 2022, 113 hedge funds in the database of Insider Monkey held stakes worth $5.1 billion in The Walt Disney Company (NYSE:DIS), up from 111 the preceding quarter worth $6.9 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe Disney is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”
2. Salesforce.com, Inc. (NYSE:CRM)
Number of Hedge Fund Holders in Q1 2022: 114
Number of Hedge Fund Holders in Q4 2021: 110
Decrease in Share Price Year-to-Date (through July 26th): 29.42%
Return since July 26th: -7.6%
Salesforce.com, Inc. (NYSE:CRM) is an application software firm. On May 31, the company posted earnings for the first quarter of 2022, reporting earnings per share of $0.98, beating analyst expectations by $0.04. The revenue over the period was $7.4 billion, up more than 24% compared to the revenue over the same period last year and beating market estimates by $30 million. The firm also raised the revenue guidance for the 2023 fiscal year to up to $7.70 billion, up 21% year-over-year.
On July 18, Piper Sandler analyst Brent Bracelin maintained an Overweight rating on Salesforce.com, Inc. (NYSE:CRM) stock and lowered the price target to $220 from $250, noting that some software firms were better equipped than others to weather economic storms.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Salesforce.com, Inc. (NYSE:CRM) with 15.2 million shares worth more than $3.2 billion.
In its Q1 2022 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Salesforce.com, Inc. (NYSE:CRM) was one of them. Here is what the fund said:
“Salesforce.com, Inc. (NYSE:CRM) is the dominant provider of customer relationship management software and technology. Salesforce has high retention rates, pricing power, high free cash flow, and a competitive moat. The company continues to execute well. Margins decreased slightly during the fourth quarter but continue to be on path for material expansion over the long term. Salesforce.com, Inc. (NYSE:CRM) is seeing increased spending as employees are returning to the office, and we believe the global pandemic has only improved its prospects.”
1. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders in Q1 2022: 160
Number of Hedge Fund Holders in Q4 2021: 158
Decrease in Share Price Year-to-Date (through July 26th): 21.69%
Return since July 26th: -8.2%
Alphabet Inc. (NASDAQ:GOOG) is a diversified technology company. On July 26, the company posted earnings for the second quarter of 2022, reporting earnings per share of $1.21, missing market estimates by $0.06. The revenue over the period was $69.9 billion, up more than 12% compared to the revenue over the same period last year and missing estimates by $110 million. The revenue for the Google Search and other services was around $40 billion while YouTube advertisements brought in $7.34 billion for the firm.
On July 27, Susquehanna analyst Shyam Patil maintained a Positive rating on Alphabet Inc. (NASDAQ:GOOG) stock and lowered the price target to $150 from $187, noting that the firm was not immune to macro pressures on the market.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.3 million shares worth more than $6.6 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the first quarter of 2022 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”
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