In this article, we will look at the top 15 stocks sold by investing legend Mario Gabelli in Q1 2022. If you want to see the top 5 stocks sold by Gabelli in Q1, go to Mario Gabelli is Selling These 5 Stocks in 2022.
Mario Gabelli is an Italian-American investor, financial analyst, and hedge fund manager. He founded GAMCO Investors in 1986. His flagship strategies have consistently outperformed the S&P 500 by an average of 2% per year since inception. As of March 31, 2022, Mr. Gabelli manages over $11.07 billion in 13F securities through his hedge fund, GAMCO Investors.
According to GAMCO Investors’ first-quarter 2022 investment portfolio, the fund has sizeable stakes in high-performing stocks such as Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL). The fund has a top ten holdings concentration of 15.54%, and currently has stakes in over 900 companies. However, for the purposes of this article, we will discuss the 15 stocks Mr. Gabelli sold in the first quarter of 2022.
Our Methodology
We reviewed GAMCO Investors’ Q1 2022 investment portfolio to compile this list of the top 15 stocks that Mario Gabelli exited in the first quarter of 2022.
Mario Gabelli is Selling These 15 Stocks in 2022
15. IonQ Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 19
IonQ Inc. (NYSE:IONQ) is a leading American quantum computing company that develops general-purpose quantum computing systems which have a wide range of industrial applications. Tech Giants such as Microsoft Corporation (NASDAQ:MSFT), International Business Machines (NASDAQ:IBM), and Alphabet Inc. (NASDAQ:GOOG) are making sizeable investments in quantum computing hardware.
By the end of the fourth quarter of 2021, 19 hedge funds initiated positions in IonQ Inc. (NYSE:IONQ), one of which was GAMCO Investors. In Q1 2022, Mario Gabelli sold his hedge fund’s stakes in the company which were valued at $47.7 million.
On May 17, Benchmark analyst David Williams lowered his price target on IonQ Inc. (NYSE:IONQ) to $15 from $20. The analyst however maintained his Buy rating on the shares to reflect the company’s market-beating financials for the fiscal first quarter of 2022. The analyst believes that quantum computing is a developing market but IonQ Inc. (NYSE:IONQ) is set to lead the space.
14. Cable One, Inc. (NYSE:CABO)
Number of Hedge Fund Holders: 19
Cable One, Inc. (NYSE:CABO) provides data, video, and voice services in the United States. By the end of the fourth quarter of 2021, 19 hedge funds were long Cable One, Inc. (NYSE:CABO) with stakes worth $482.02 million. This is compared to 26 hedge funds in Q3 2021 with stakes of $585.27 million. In Q1 2022, Mario Gabelli sold his stakes in Cable One, Inc. (NYSE:CABO) and completely exited the stock.
On May 6, KeyBanc analyst Brandon Nispel slashed his price target on Cable One, Inc. (NYSE:CABO) to $1,896 from $2,326 but reiterated an Overweight rating on the shares, in light of the company’s market-beating results for the fiscal first quarter of 2022. The analyst contended that Cable One, Inc. (NYSE:CABO) is exhibiting solid growth, rising margins, and high free-cash-flow generation.
Unlike Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL), Mr. Gabelli let go of Cable One, Inc. (NYSE:CABO) in the first quarter of 2022.
13. Del Taco Restaurants, Inc. (NASDAQ:TACO)
Number of Hedge Fund Holders: 20
Del Taco Restaurants, Inc. (NASDAQ:TACO) operates as an American fast food restaurant chain, offering American-style Mexican cuisine as well as American foods such as hamburgers, fries, and shakes. The company is well known for its taste and was founded in 1964.
Del Taco Restaurants, Inc. (NASDAQ:TACO) just inaugurated its newest location in Temp, Arizona on April 21. On May 18, the company signed a multi-unit deal that will add six new locations to the state of Alabama in partnership with franchisee Sam Abusaleem in the Huntsville market. Del Taco Restaurants, Inc. (NASDAQ:TACO) is expanding its locations in 2022, however, GAMCO Investors sold their stake in the company in Q1 2022.
By the end of the fourth quarter of 2021, 20 hedge funds held stakes in Del Taco Restaurants, Inc. (NASDAQ:TACO) which amounted to $60.86 million. This is compared to 10 positions in the preceding quarter with stakes worth $17.44 million. The hedge fund sentiment for the stock is positive.
12. Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL)
Number of Hedge Fund Holders: 21
Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) operates as a clinical-stage biopharmaceutical company in the United States. The company is involved in discovering and developing small molecule therapeutics for the treatment of various cancers. The company has strategic collaborations with major pharmaceutical companies such as Pfizer Inc. (NYSE:PFE), GSK plc (NYSE:GSK), and Eli Lilly And Co (NYSE:LLY).
On April 13, Guggenheim analyst Michael Schmidt lowered his price target on Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) to $67 from $92 but reiterated a Buy rating on the shares. Schmidt holds a positive outlook on the stock after the company presented its ZN-c3 monotherapy Phase I data in patients with uterine serous carcinoma and Phase I data with chemotherapy in patients with platinum-resistant ovarian cancer. The analyst views upside for the stock and sees ZN-c3 being a success in the pharmaceutical industry.
At the close of Q4 2021, 21 hedge funds held stakes in Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL) worth $1.21 billion. This is compared to 19 positions in the previous quarter with stakes of $794.61 million. The hedge fund sentiment for the stock is positive, however, in Q1 Mario Gabelli sold his hedge fund’s stakes in the company and dumped the stock.
11. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 25
Novartis AG (NYSE:NVS) is a Swiss multinational pharmaceutical corporation and also one of the largest pharmaceutical companies in the world by market capitalization. On May 9, Wolfe Research analyst Tim Anderson downgraded Novartis AG (NYSE:NVS) to Peer Perform from Outperform and gave the shares a CHF 88 price target. Anderson noted that he is skeptical about the company’s research and development abilities while putting forth his bear case.
This April, Novartis AG (NYSE:NVS) reported earnings for the fiscal first quarter of 2022. The company reported earnings per share of $1.46 but missed consensus by $0.05. Moreover, Novartis AG (NYSE:NVS) generated revenues of $12.53 billion but missed Wall Street consensus by $81.72 million.
At the end of the fourth quarter of 2021, 25 hedge funds were long Novartis AG (NYSE:NVS) with stakes worth $1.88 billion. This is compared to 22 positions in the previous quarter with stakes of $1.43 million. The hedge fund sentiment for the stock is positive, however, billionaire Mario Gabelli dumped Novartis AG (NYSE:NVS) at the end of Q1 2022.
10. CareDx, Inc (NASDAQ:CDNA)
Number of Hedge Fund Holders: 26
CareDx, Inc. (NASDAQ:CDNA) discovers, develops, and commercializes diagnostic solutions for transplant patients and caregivers worldwide. The company is leading the precision medicine sector and is dedicated to improving the lives of organ transplant patients through non-invasive diagnostics. By the end of the fourth quarter of 2021, 26 hedge funds were long CareDx, Inc. (NASDAQ:CDNA) with stakes worth $360.59 million. One of these hedge funds was GAMCO Investors, with a stake of $211,000. However, in Q1 2022, the hedge fund exited the stock completely.
On April 25, Stephens analyst Mason Carrico initiated coverage of CareDx, Inc. (NASDAQ:CDNA) with an Overweight rating and a $50 price target. Carrico noted that the company has grown to become a leader in transplant diagnostics over the past two decades, which has resulted in strong test adoption and a more prominent presence within transplant centers in the U.S. The analyst sees CareDx, Inc. (NASDAQ:CDNA) gaining more market share as the company expands.
Mr. Gabelli sold his stakes in CareDx, Inc (NASDAQ:CDNA) roughly 50 companies in the first quarter of 2022. However, he maintained his stakes and even initiated new positions in several high-growth tech stocks such as Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL).
Baron Funds, an asset management firm, named several stocks in its “Baron Discovery Fund” fourth-quarter 2021 investor letter, one of which was CareDx, Inc (NASDAQ:CDNA). Here is the firm’s view on the stock:
“CareDx, Inc. provides transplant testing and ancillary services. The company reported strong fourth quarter earnings (it beat and raised full-year guidance), driven primarily by its kidney and heart transplant tests. It also continues to move forward with more transplant tests (liver, stem cell/bone marrow transplant, cell transplant, and lung). We believe the weak share performance in the quarter related to flattish revenue guidance in the fourth quarter driven by some holiday seasonality and the Omicron COVID variant. Additionally, some investors were concerned that average selling prices were a bit lower in the third quarter, however this reflects the company’s new lung test which is not yet reimbursed by commercial insurers (but which CareDx is running to gain share). This is typical of
diagnostic launches, and we are not concerned. There is also noise surrounding a competitor’s study data in kidney that is purported to be more accurate than CareDx’s test. While the headline number looks slightly better for the competitor, it is important to note that CareDx’s Heart Care combination test, which includes both donor-derived DNA and gene expression testing, is at least comparable to the competitor’s accuracy. Also, the full publication has not yet been released, and we have reason to believe that CareDx could successfully modify its test to be as accurate as the competitor if needed. CareDx has proven itself to be a terrific long-term partner to its customers, providing not only tests, but services to transplant centers and their patients that creates brand stickiness, and therefore competitive advantage beyond pure testing. We are not concerned by the short-term dip in the share price as CareDx still has significant market opportunity in kidney, heart, and all of its pipeline products.”
9. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 26
The Wendy’s Company (NASDAQ:WEN) operates a chain of quick-service restaurants in the United States and internationally. As of January 2, 2022, the company operates approximately 5,535 franchised restaurants in the United States and 1,006 franchised restaurants internationally. Even though the company has a strong footing in the restaurant industry, shares of The Wendy’s Company (NASDAQ:WEN) have dipped by 29.38% over the past twelve months as of May 19. GAMCO Investors exited the stock in Q1 2022 after selling its Q4 2021 stakes of roughly $0.56 million.
On May 12, Barclays analyst Jeffrey Bernstein slashed his price target on The Wendy’s Company (NASDAQ:WEN) to $25 from $28 but maintained an Overweight rating on the shares. The analyst contended that the company underperformed in Q1 2022, citing the COVID situation and commodity inflation on earnings to be deterministic factors for a poor quarter.
At the end of Q4 2021, 26 hedge funds held stakes in The Wendy’s Company (NASDAQ:WEN). The total value of these stakes came in at $906.73 million, down from $949.81 million in the previous quarter with 33 positions.
8. Trex Company, Inc. (NYSE:TREX)
Number of Hedge Fund Holders: 28
Trex Company, Inc. (NYSE:TREX) manufactures and distributes decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. At the end of the fourth quarter of 2021, 28 hedge funds were bullish on Trex Company, Inc. (NYSE:TREX). These hedge funds held collective stakes of $289.12 million in the company, up from $222.42 million in the prior quarter with 21 positions. One of these hedge funds was GAMCO Investors, but the fund exited the stock in Q1 2022 and sold all its stake in the company.
On May 10, Credit Suisse analyst Daniel Oppenheim upgraded Trex Company, Inc. (NYSE:TREX) to Neutral from Underperform and reiterated his price target of $65 on the shares. Oppenheim noted that the company’s Q1 2022 earnings came in better than expected, and he sees the company maintaining higher pricing despite rising costs.
On May 16, Trex Company, Inc. (NYSE:TREX) announced a new expansion of its Transcend decking line with the introduction of Trex Transcend Lineage. This company’s latest product brings an appealing aesthetic with vibrant colors and enhanced performance features to outdoor living. Trex Company, Inc. (NYSE:TREX) is making strides however, it is one of the stocks to sell according to billionaire investor Mario Gabelli.
ClearBridge Investments shared its long-term outlook on Trex Company, Inc. (NYSE:TREX) in its fourth-quarter 2021 investor letter. Here is what the firm said:
“The ClearBridge SMID Cap Growth Strategy continued to deliver strong absolute and relative returns as our focus on de-risking investments prior to purchase and managing position sizes has made a difference through recent market turbulence. Trex, a manufacturer of outdoor decking made from extruded sawdust and recycled plastics, is the largest position in the Strategy but the only stock with a weighting of over 3% in a diversified growth portfolio of about 80 names. Trex has successfully convinced consumers about the virtue of composite decking (durability, environmental impact) versus virgin lumber construction. The stock was boosted recently by exceptionally strong third quarter results that handily topped expectations on a variety of metrics as well as strong guidance. Substantial capacity additions have been adroitly deployed and absorbed, and the company is planning for its third U.S. manufacturing site.”
7. Ball Corporation (NYSE:BLL)
Number of Hedge Fund Holders: 32
Ball Corporation (NYSE:BLL) is a leading supplier of aluminum packaging products for the beverage, personal care, and household products industries in the United States, Brazil, and internationally. Legendary investor Mario Gabelli pulled out of Ball Corporation (NYSE:BLL) in Q1 2022, nullifying his hedge fund’s Q4 2021 stakes of $0.25 million in the company. As of May 19, Ball Corporation (NYSE:BLL) has declined by 18.94% over the past twelve months.
While some are bearish on Ball Corporation (NYSE:BLL), others are becoming bullish as the company is announcing exciting news for shareholders. On May 10, Ball Corporation (NYSE:BLL) announced that its board of directors have authorized a share repurchase agreement of roughly $300 million of its outstanding common stock. Then, on May 17, Truist analyst Michael Roxland upgraded the stock to Buy from Hold.
At the end of Q4 2021, 32 hedge funds were long Ball Corporation (NYSE:BLL). These funds held collective stakes of $956.19 million in the company, down from $1.45 billion in Q3 2021 with 27 positions.
Here is what ClearBridge Investments had to say about Ball Corporation (NYSE:BLL) in their third-quarter 2021 investor letter:
“Ball, the largest manufacturer of recyclable aluminum beverage cans in North America, bucked headwinds for the materials sector with strong quarterly results and was supported by contracts indicative of further growth.”
6. Penn National Gaming, Inc. (NASDAQ:PENN)
Number of Hedge Fund Holders: 36
Penn National Gaming, Inc. (NASDAQ;PENN) owns and operates gaming and racing properties, and video gaming terminals in over 20 U.S. states. The company offers casino gaming, online gaming, live racing, sports betting, and digital sports content. As of the end of Q4 2021, the company owns and operates over 44 gaming and racing properties in the United States.
On May 18, Jefferies analyst David Katz upgraded Penn National Gaming, Inc. (NASDAQ:PENN) to Buy from Hold and reiterated his price target of $49 on the shares.
Even though Penn National Gaming, Inc. (NASDAQ:PENN) is attracting “Buy” ratings and is demonstrating strong financial performance, the stock was sold by billionaire Mario Gabelli in Q1 2022. Taking a look at Q4 2021, 36 hedge funds were bullish on Penn National Gaming, Inc. (NASDAQ:PENN) having stakes worth $440.58 million in the company. Comparing this to the third quarter of 2021, 38 hedge funds held long positions in the company with total stakes of $1.08 billion.
Carillon Tower Advisers mentioned Penn National Gaming, Inc. (NASDAQ:PENN) in its recently published “Carillon Eagle Small Cap Growth Fund” fourth-quarter 2021 investor letter. Here is what the firm said:
“Penn National Gaming is a diversified omnichannel provider of retail and online gaming, live racing, and sports betting entertainment. The stock sold off a bit after a quarterly update came in slightly below expectations, which was largely a result of the impact that Hurricane Ida and the reemergence of COVID had on its landbased operations. Despite this, the company’s mobile sportsbook app is now live in more than 10 states and continues to gain market share. We are also very bullish on the prospects for the company’s land-based casinos going forward.”
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Disclose. None. Mario Gabelli is Selling These 15 Stocks in 2022 is originally published on Insider Monkey.
