In this article, we discuss 5 stocks that Ken Fisher sold before entering 2022. If you want our detailed analysis of these stocks, go directly to Ken Fisher Sold These 10 Stocks Before Entering 2022.
5. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 30
American Airlines Group Inc. (NASDAQ:AAL) is a major Texas-based airline that operates an elaborate network of international and domestic flights, covering nearly 350 destinations in more than 50 countries.
Ken Fisher first acquired a stake in American Airlines Group Inc. (NASDAQ:AAL) in Q4 2014, and sold off his shares in Q3 2015. He once again purchased shares of American Airlines Group Inc. (NASDAQ:AAL) in Q4 2015, and discarded the position in the next quarter. In the third quarter of 2021, the billionaire bought 10,480 shares of American Airlines Group Inc. (NASDAQ:AAL), worth $215,000, which he again disposed of in Q4 2021.
On January 20, American Airlines Group Inc. (NASDAQ:AAL) reported earnings for the fourth quarter of 2021. The company posted a loss per share of $1.42, beating estimates by $0.06. The $9.43 billion revenue jumped 134% year-over-year, outperforming estimates by roughly $50 million.
Citi analyst Stephen Trent opened a “30-day positive Catalyst Watch” on Neutral-rated American Airlines Group Inc. (NASDAQ:AAL). With the omicron variant “possibly subsiding” and Trans-Atlantic demand “potentially perking up,” the share price pullbacks “seem to have created attractive entry points,” Trent told investors in a research note on January 27.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 30 hedge funds were bullish on American Airlines Group Inc. (NASDAQ:AAL), up from 25 funds in the prior quarter. Two Sigma Advisors is a prominent American Airlines Group Inc. (NASDAQ:AAL) stakeholder, with over 8 million shares worth $164.4 million.
4. LivaNova PLC (NASDAQ:LIVN)
Number of Hedge Fund Holders: 32
LivaNova PLC (NASDAQ:LIVN) is a company that manufactures medical equipment for cardiac surgery and neuromodulation. Ken Fisher has been bullish on LivaNova PLC (NASDAQ:LIVN) since Q1 2016, when he purchased 52,000 shares of the company, worth $2.85 million. He sold off his stake in LivaNova PLC (NASDAQ:LIVN) in Q3 2017, before acquiring a position in the company again in Q4 2017. As of Q3 2021, he held an $8.8 million stake in LivaNova PLC (NASDAQ:LIVN), which he discarded entirely in Q4 2021.
On December 7, Piper Sandler analyst Adam Maeder kept his Overweight rating and a $105 price target on LivaNova PLC (NASDAQ:LIVN). The analyst told investors that LivaNova PLC (NASDAQ:LIVN)’s neuromodulation pipeline continues to track in-line with previous guideposts in terms of its key initiatives, and he called the stock his “favorite idea” heading into 2022.
According to the third quarter database of Insider Monkey, 32 hedge funds held long positions in LivaNova PLC (NASDAQ:LIVN), down from 36 funds in the quarter earlier. Harris Associates held the largest position in LivaNova PLC (NASDAQ:LIVN) in Q3 2021, with 3.8 million shares worth $302 million.
Here is what Diamond Hill Small Cap Fund has to say about LivaNova PLC (NASDAQ:LIVN) in its Q3 2021 investor letter:
“Our health care holdings were negative in aggregate, but outpaced index peers, which boosted relative performance along with our below-benchmark positioning on an individual holdings’ basis, we exited global medical technology company LivaNova as shares approached our estimate of intrinsic value.”
3. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 35
Royal Caribbean Cruises Ltd. (NYSE:RCL) is a Florida-based global cruise holding company that wholly owns three cruise lines, namely Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.
Ken Fisher acquired 1,944 shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) in Q4 2019, worth $260,000, and discarded his stake entirely in Q1 2020. Ken Fisher’s fund purchased 2,454 shares of the company in Q3 2021, valued at $218,000, which he disposed of in the fourth quarter of 2021.
On February 4, Royal Caribbean Cruises Ltd. (NYSE:RCL) reported its Q4 financial results. The company posted a loss per share of $4.78, missing estimates by $0.86. Revenue over the period jumped more than 2700% from the prior-year quarter, reaching $982.25 million, but missed market consensus estimates by $172.22 million.
Stifel analyst Steven Wieczynski lowered the price target on Royal Caribbean Cruises Ltd. (NYSE:RCL) to $125 from $130 following the company’s earnings report, but kept a Buy rating on the shares on February 8. While he is lowering 2022/2023 EBITDA and EPS estimates as he slightly delayed the company’s full return to service, the analyst thinks that Royal Caribbean Cruises Ltd. (NYSE:RCL) and the rest of the cruise operators are “set up exceptionally well” heading into the second half of 2022, given demand and pricing patterns continue to strengthen and the risk around additional capital raises “seems remote”.
According to the Q3 data of Insider Monkey, 35 hedge funds were bullish on Royal Caribbean Cruises Ltd. (NYSE:RCL), down from 42 funds in the preceding quarter. Of these 35 funds, as of Q3 2021, Citadel Investment Group is a prominent stakeholder of Royal Caribbean Cruises Ltd. (NYSE:RCL), with more than 1 million shares worth $92.4 million.
2. FirstEnergy Corp. (NYSE:FE)
Number of Hedge Fund Holders: 38
FirstEnergy Corp. (NYSE:FE) is an electric utility company headquartered in Akron, Ohio. The company specializes in electricity generation, transmission, distribution, energy management, and other energy-related services. In Q3 2021, Ken Fisher acquired 5,969 FirstEnergy Corp. (NYSE:FE) shares, worth $213,000. He discarded his stake in the company entirely in Q4 2021.
FirstEnergy Corp. (NYSE:FE) on December 21 declared a $0.39 per share quarterly dividend, in line with previous. The dividend is payable on March 1, to shareholders of record on February 7.
On January 7, Evercore ISI analyst Michael Lonegan upgraded FirstEnergy Corp. (NYSE:FE) to Outperform from In Line with a price target of $46, up from $40. FirstEnergy Corp. (NYSE:FE) shares present an “inexpensive opportunity” that has not yet fully realized the benefits of transitioning to a fully regulated electric utility with more constructive regulation as a result of many disruptions, the analyst told investors in a research note.
In Q3 2021, 38 hedge funds were long FirstEnergy Corp. (NYSE:FE), with stakes totaling $1.47 billion, as compared to 35 funds in the prior quarter, holding stakes in FirstEnergy Corp. (NYSE:FE) worth $1.70 billion. Carl Icahn’s Icahn Capital LP is the leading stakeholder of FirstEnergy Corp. (NYSE:FE), with roughly 19 million shares worth $675.6 million.
1. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 89
T-Mobile US, Inc. (NASDAQ:TMUS) is an American wireless network operator that is majorly owned by Deutsche Telekom, a German telecommunications company. Ken Fisher first purchased a stake in T-Mobile US, Inc. (NASDAQ:TMUS) in Q2 2020, and sold his shares in the next quarter. He invested in the company again in Q2 2021, and in the third quarter, he held 2,026 T-Mobile US, Inc. (NASDAQ:TMUS) shares, worth $259,000. Ken Fisher discarded his position in the company entirely in the fourth quarter of 2021.
Billionaire Andreas Halvorsen’s Viking Global held the biggest stake in T-Mobile US, Inc. (NASDAQ:TMUS) in Q3 2021, with 10.2 million shares worth $1.30 billion. Overall, 89 hedge funds were bullish on T-Mobile US, Inc. (NASDAQ:TMUS) in the third quarter, down from 100 funds in the quarter earlier.
Publishing its Q4 results on February 2, T-Mobile US, Inc. (NASDAQ:TMUS) reported earnings per share of $1.10, exceeding estimates by $1.01. The $20.79 billion revenue missed estimates by roughly $270 million.
On February 3, RBC Capital analyst Kutgun Maral lowered the price target on T-Mobile US, Inc. (NASDAQ:TMUS) to $152 from $180 and kept an Outperform rating on the shares. The company’s Q4 total revenue missed consensus on lower than expected equipment sales, but sentiment should be “near positive inflection soon”, the analyst told investors in a research note.
Here is what ClearBridge Investments had to say about T-Mobile US, Inc. (NYSE:TMUS) in its Q1 2021 investor letter:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”
You can also take a look at Top 10 Tech and Automation Stocks in Cathie Wood’s Portfolio and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.
