Legendary Value Investor Bill Miller’s Portfolio: Top 5 Stock Picks

2. DXC Technology Company (NYSE:DXC)

Miller Value Partners’ Stake Value: $117.95 million

Percentage of Miller Value Partners’ 13F Portfolio: 2.73%

Number of Hedge Fund Holders: 33

DXC Technology Company (NYSE:DXC) is an American IT services provider with a global presence. Its products let its customers gain insights from their daily operations and allow them to digitally transform their operations.

BMO Capital lowered the IT company’s price target to $45 from $50 in November 2021 sharing that weak bookings and strong income statement metrics painted a mixed picture for the company. For its fiscal Q2, DXC Technology Company (NYSE:DXC) posted revenue of $4 billion and EPS of $0.9, missing estimates for revenue.

Mr. Miller’s hedge fund owned 3.5 million DXC Technology Company (NYSE:DXC) shares as of Q3 2021 end. These were worth $117 million and represented 2.73% of its portfolio. 33 of the 867 hedge funds part of Insider Monkey’s survey for the same time period owned the company’s shares.

DXC Technology Company (NYSE:DXC)’s largest investor is Natixis Global Asset Management’s Harris Associates who owns 10.7 million shares worth $360 million.

Miller Value Partners mentioned the firm in its Q2 2021 investor letter outlining that:

“DXC Technology Company (DXC) continued to climb higher during the quarter gaining 24.57%. The company reported solid Fiscal Year 4th quarter (FY4Q) results with revenue of $4.385B beating consensus of $4.29B and earnings per share (EPS) of $0.74 ahead of expectations for $0.70. The company guided for fiscal 2022 revenue of $16.6-$16.8B, below the Street at $16.9B and adjusted EPS of $3.45-3.65, ahead of the consensus of $3.43. By FY2024, the company expects organic revenue growth of 1-3%, adjusted earnings before income and taxes (EBIT) margin of 10-11%, adjusted diluted EPS of $5.00-$5.25 and free cash flow (FCF) of $1.5B. Later in the month, the company held an investor day where management highlighted their confidence that they can hit all of their targets while also stressing the progress they have made on their turnaround to date.”