This article discusses Levin Easterly Partners’ Latest Portfolio: Top 5 Stock Picks at the end of June 2022. To know how Levin Easterly Partners got created from Levin Capital Strategies and has now changed its name to Easterly Investment Partners, please read Levin Easterly Partners’ Latest Portfolio: Top 10 Stock Picks.
5. Dominion Energy Inc. (NYSE:D)
Levin Easterly Partners’ Stake Value: $24,650,000
Percentage of Levin Easterly Partners’ 13F Portfolio: 2.19%
Number of Hedge Fund Holders(Q1): 34
Dominion Energy Inc.’s (NYSE:D) popularity among hedge funds tracked by us peaked at the end of June 2019, when 50 funds reported holding a stake in the company. In contrast, only 38 hedge funds tracked by Insider Monkey disclosed a stake in Dominion Energy Inc. (NYSE:D) at the end of March 2021. Dominion Energy Inc. (NYSE:D) is a multi-utility company operating in both regulated electricity and gas distribution segments. With an annual dividend of $2.67 per share, Dominion Energy Inc.’s (NYSE:D) currently boasts of an attractive annual dividend yield of 3.27%.
For the third quarter of its fiscal year 2023, Dominion Energy Inc. (NYSE:D) reported a net loss of $453 million on revenue of $3.6 billion compared to earnings of $285 million on revenue of $3 billion for the same quarter last year. A large part of the FY2022 third quarter loss declared by Dominion Energy Inc. (NYSE:D) can be attributed to the increase in its operating expenses, which rose to $3.9 billion from $2.7 billion in the third quarter of the fiscal year 2021.
4. Pfizer Inc. (NYSE:PFE)
Levin Easterly Partners’ Stake Value: $25,641,000
Percentage of Levin Easterly Partners’ 13F Portfolio: 2.28%
Number of Hedge Fund Holders(Q1): 79
Having more than doubled its stake in pharmaceutical giant Pfizer Inc. (NYSE:PFE) during the first quarter, Levin Easterly Partners proceeded to cut its stake in the company by 25% to 489,047 shares during the second quarter. Cathie Wood’s ARK Investment Management also lowered its stake in Pfizer Inc. (NYSE:PFE) marginally by 4% to 734,165 shares during that time. Pfizer Inc. (NYSE:PFE) currently trades at a low forward price-to-earnings multiple of only 7.45 and recently made it to Insider Monkey’s list of 5 Undervalued Blue Chip Stocks to Buy Now.
On August 12, the company revealed that its 20-valent pneumococcal conjugate vaccine candidate called 20vPnC had met the co-primary endpoints in a Phase 3 trial performed on children. Pfizer Inc. (NYSE:PFE) already produces a Prevnar 13 vaccine that protects against 13 serotypes that lead to invasive pneumococcal disease. The 20vPnC promises protection against 7 new serotypes.
3. Truist Financial Corporation (NYSE:TFC)
Levin Easterly Partners’ Stake Value: $26,440,000
Percentage of Levin Easterly Partners’ 13F Portfolio: 2.35%
Number of Hedge Fund Holders(Q1): 36
Since disclosing its stake for the first time during the third quarter of 2021, Levin Easterly Partners has been increasing its holdings in Truist Financial Corporation (NYSE:TFC) every quarter. This consistent buying made the Charlotte, North Carolina-based bank with 150 years of history, Levin Easterly Partners’ third most loved stock at the end of June.
Unlike several other banking stocks, Truist Financial Corporation’s (NYSE:TFC) shares have recovered substantially since the global financial crisis and have returned 60% to shareholders through price appreciation alone in the last ten years. Truist Financial Corporation (NYSE:TFC) has a decades-long history of consistently paying dividends to its shareholders. As of August 2022, the bank pays an annual dividend of $2.08 per share, which translates to an annual dividend yield of 4.08% based on its current stock price.
2. Unilever PLC (NYSE:UL)
Levin Easterly Partners’ Stake Value: $29,443,000
Percentage of Levin Easterly Partners’ 13F Portfolio: 2.62%
Number of Hedge Fund Holders(Q1): 23
From just 13 funds tracked by Insider Monkey reporting a stake in Unilever PLC (NYSE:UL) at the end of March 2020, the popularity of the company among smart money investors grew substantially in the next two years as 25 funds tracked by us disclosed a stake in Unilever PLC (NYSE:UL) at the end of March 2022. Earlier this year, Unilever PLC’s (NYSE:UL) stock closed below the low it made in March 2020 and has been trading in the $45 to $50 range since then.
Unlike Levin Easterly Partners, many analysts and other asset management firms are currently not bullish on Unilever PLC (NYSE:UL). On July 27, analysts at DZ Bank downgraded the stock to ‘Hold’ from ‘Buy’. In the same month, Diamond Hill Capital, published its first-quarter 2022 investor letter for Diamond Hill International Fund, in which it had this to say about Unilever PLC (NYSE:UL):
“Unilever’s recent results have been hampered by inflation, and the company guided to further margin pressure in 2022. In addition, the market was disappointed by Unilever’s failed attempt to acquire GSK’s consumer health business. The company announced a large reorganization which will reduce management overhead. While we expect Unilever to be able to successfully manage this inflationary environment, near-term results for the business will be challenging.”
1. The Goldman Sachs Group, Inc. (NYSE:GS)
Levin Easterly Partners’ Stake Value: $29,886,000
Percentage of Levin Easterly Partners’ 13F Portfolio: 2.66%
Number of Hedge Fund Holders(Q1): 71
Investment banking juggernaut The Goldman Sachs Group, Inc. (NYSE:GS) was Levin Easterly Partners’ top stock pick at the end of June despite the stock of the bank falling by more than 10% during that period. Other funds covered by us that were bullish on The Goldman Sachs Group, Inc. (NYSE:GS) at the end of June included John W. Rogers’ Ariel Investments and Thomas E. Claugus’ GMT Capital, with both of these funds raising their stake in the bank by 12% and 63%, respectively, during Q2.
Of the 13 analysts who cover The Goldman Sachs Group, Inc. (NYSE:GS), 8 currently have a ‘Buy’ rating on the stock and the consensus price target on the stock among those 13 analysts is $413.92, which represents a potential upside of over 17% from where the stock is trading at present. The Goldman Sachs Group, Inc. (NYSE:GS) Chairman & CEO, David Solomon, spoke with Jim Cramer on CNBC’s “Mad Money” show on July 16 and had this to say about the firm’s trading business and its leadership group:
“The trading, the trading business has always been core to the firm and it will always be core to the firm. What I’m, what I’m really excited about and and, you know, feel really great about is the leadership group and that division has really invested over the last four years and our client relationships. They’ve had a very, very targeted program of looking at the 100 most important clients in that business and making sure that our market share, our wallet share and the feedback we get from those clients is on a positive trajectory and improving and we’ve had real strides in the context of our wallet share with those top 100 clients, which really are the most significant institutions that we deal with in our market business. Sure there are lots of others but that top 100 is very important. So we’ve been committed to this business. I think it’s one of the great things that that Lloyd did. He was always steadfast in his commitment to this business. I’m steadfast in my commitment to this business. It served our clients well. We’ve got a great global footprint and we’re going to continue to make sure we’re in a position to serve our clients across all markets.”
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