In this article, we will look at the top 5 stocks billionaire Mario Gabelli sold in 2022. If you wish to look at other stocks that GAMCO Investors exited in Q1 2022, you can go to Mario Gabelli is Selling These 15 Stocks in 2022.
5. Bio-Rad Laboratories, Inc. (NYSE:BIO)
Number of Hedge Fund Holders: 38
Bio-Rad Laboratories, Inc. (NYSE:BIO) is an industry leader in life science research and clinical diagnostic products, with operations in the United States, Europe, Asia, Canada, and Latin America. However, as of May 19, shares of Bio-Rad Laboratories, Inc. (NYSE:BIO) have plummeted by 11.51% over the past twelve months, and in Q1 2022, GAMCO Investors completely sold its stakes in the company.
Even though shares of Bio-Rad Laboratories, Inc. (NYSE:BIO) have declined, the company posted a strong fiscal first quarter of 2022 this April. The company registered an EPS of $4.94 and outperformed estimates by $1.71.
On May 2, Citi analyst Patrick Donnelly lowered his price target on Bio-Rad Laboratories, Inc. (NYSE:BIO) to $750 from $800 to reflect lower peer multiples. However, Donnelly maintained a Buy rating on the shares in light of the company’s strong earnings in Q1 2022 which were driven by significant growth in the life sciences segment.
Insider Monkey found 38 hedge funds bullish on Bio-Rad Laboratories, Inc. (NYSE:BIO) with stakes worth $1.37 billion at the end of Q4 2021. This is compared to 38 positions in Q3 2021 with stakes worth $1.44 billion.
4. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders: 38
Toll Brothers, Inc. (NYSE:TOL) designs, builds, markets, and sells detached and attached homes in luxury residential communities in the United States. The company operates through two business segments: Traditional Home Building and City Living.
Inflation is on the rise and so are mortgage rates, something that might not be good for business for Toll Brothers, Inc. (NYSE:TOL). Freddie Mac reported that rates on a 30-year fixed-rate mortgage have gone up to 5% from 3%, registering the highest rate of increase since the 1980s. Billionaire investor Mario Gabelli sold his hedge fund’s stakes in the company in Q1 2022 and is now safe from the effects that high mortgage rates might have on companies like Toll Brothers, Inc. (NYSE:TOL).
On April 13, JPMorgan analyst Michael Rehaut lowered his price target on Toll Brothers, Inc. (NYSE:TOL) to $51 from $58 and reiterated a Neutral rating on the shares. Rehaut noted that investors are wary of homebuilding stocks this earnings season, given rising interest rates, and do not expect the homebuilding sector to record a significant rebound.
By the end of the fourth quarter of 2021, 38 hedge funds were long Toll Brothers, Inc. (NYSE:TOL) with stakes worth $808.70 million. This is compared to 31 positions in Q3 2021 with stakes of $705.64 million.
3. Shell Plc (NYSE:SHEL)
Number of Hedge Fund Holders: 41
GAMCO Investors exited Shell Plc (NYSE:SHEL) in the first quarter of 2022. However, things are looking bright for the company as the stock is attracting price raises and “Buy” ratings from Wall Street analysts. On May 6, UBS analyst Henri Patricot raised his price target on Shell Plc (NYSE:SHEL) to 2,550 GBP from 2,450 GBP and reiterated a Buy rating on the shares.
Moreover, Shell Plc (NYSE:SHEL) is initiating share buybacks. On May 5, the company announced the commencement of trading in the second cycle of its $8.5 billion share buyback program that was announced on February 3, after having completed the first cycle of this share buyback program on May 4. The company has successfully repurchased over 148.2 million ordinary shares which were valued at $4 billion. Shell Plc (NYSE:SHEL) anticipates the second cycle of the share buyback to reach completion by the company’s Q2 earnings release which is scheduled on July 28.
By the end of the fourth quarter of 2021, 41 hedge funds held stakes in Shell Plc (NYSE:SHEL). The total value of these stakes came in at $2.63 billion. This is compared to 33 positions in the previous quarter with stakes worth $2.05 billion. The hedge fund sentiment for the stock is positive.
Third Point Management, an investment management firm, published its first-quarter 2022 investor letter in which it mentioned Shell Plc (NYSE:SHEL). Here is what the firm said:
“We have continued to add to our position in Shell, as it trades at the same deeply discounted multiple today that it did last year due to a move up in commodity prices. We are engaged in discussions with management, board members, and other shareholders, as well as informal talks with financial advisors. We have discussed various alternatives with the aim of both increasing shareholder value and allowing Shell to effectively manage the energy transition. We have reiterated our view that Shell’s portfolio of disparate businesses ranging from deep water oil to wind farms to gas stations to chemical plants is confusing and unmanageable. Most investors we have discussed this with agree that the company would be more successful over the long term with a different corporate structure. Discussions among the parties have been constructive and will be ongoing since stakeholders clearly see these corporate changes as instrumental, particularly if Shell wishes to become a leader in the energy transition rather than be left behind as a tarnished legacy brand.
Beyond our discussions around corporate structure, there have been two important developments since our last update. First, Shell announced a plan to redomicile its headquarters to the UK and create a single shareholder class. This move allows greater flexibility to modify its portfolio (either through asset sales or spin-offs) and allows for a more efficient return of capital, specifically via share repurchases. Second, fundamental and geopolitical events have highlighted the strategic importance of reliable energy supplies, especially in Europe. Shell’s LNG business, the largest in the world outside of Qatar, will play a critical role in ensuring energy security for Europe. In our view, the value of this business has increased dramatically since our original investment.
While Shell continues to trade at a large discount to its intrinsic value, with proper management we believe the company can simultaneously deliver shareholder returns, reliable energy and decarbonization of the global economy. We look forward to continued engagement with management and other shareholders and to more strategic clarity from the Company.”
2. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 43
Moderna, Inc. (NASDAQ:MRNA) operates as a biotechnology company that develops and commercializes messenger RNA therapeutics and vaccines for the treatment of infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and auto-immune diseases in the United States, Europe, and internationally. As of May 19, shares of Moderna, Inc. (NASDAQ:MRNA) have dipped 13.61% over the past twelve months, and it is among the top 15 stocks that Mario Gabelli has sold in Q1 2022.
On May 17, Piper Sandler analyst Edward Tenthoff lowered his price target on Moderna, Inc. (NASDAQ:MRNA) to $214 from $348 backing his lowered revenue expectations for Spikevax, Moderna, Inc.’s (NASDAQ:MRNA) latest COVID-19 vaccination. The analyst maintained an Overweight rating on the shares but decreased his peak revenue estimates from Spikevax to value at $20.65 billion, down from his prior estimate of $94.7 billion.
At the end of Q4 2021, 43 hedge funds were bullish on Moderna, Inc. (NASDAQ:MRNA) with stakes worth $3.88 billion. This is compared to 49 positions in the previous quarter with stakes of $7.31 billion.
Carillon Tower Advisers mentioned Moderna, Inc. (NASDAQ:MRNA) in their third-quarter 2021 investor letter, here is what they said:
“Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. The stock proved to be an impressive contributor once again in the quarter, as investors continue to evaluate the potential for future growth driven primarily by the firm’s revolutionary COVID-19 vaccine. Strong global demand for the vaccine may persist for the foreseeable future in order to maintain immunity as well as provide protection against any additional future variants. The potential for the firm’s mRNA technology to be used in a number of other use cases, specifically influenza, could also provide an additional tailwind for future growth.”
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 58
By the end of Q4 2021, 58 hedge funds were long Occidental Petroleum Corporation (NYSE:OXY) with stakes worth $3.86 billion in the company. This is compared to 60 hedge funds in the prior quarter with stakes of $3.18 billion. In Q1 2022, GAMCO Investors let go of their stakes in Occidental Petroleum Corporation (NYSE:OXY).
Occidental Petroleum Corporation (NYSE:OXY) may have been discarded by billionaire Mario Gabelli, but the company is posting strong quarters and making a name for itself in the oil and gas sector. On May 10, Occidental Petroleum Corporation (NYSE:OXY) registered an EPS of $2.12 and exceeded estimates by $0.09 for the fiscal first quarter of 2022. The company generated quarterly revenues of $8.53 billion, up 55.74% year over year and beat estimates by $473.11 million. Moreover, as of May 19, Occidental Petroleum Corporation (NYSE:OXY) has climbed an astounding 156.35% over the past twelve months.
Shortly after the company’s earnings release, Susquehanna analyst Biju Perincheril raised his price target on Occidental Petroleum Corporation (NYSE:OXY) to $73 from $71 and reiterated a Positive rating on the shares. The analyst noted the company’s strong financial upturn in Q1 2022 but also highlighted a slightly weak Q2 production guidance put forth by the company. Nevertheless, the analyst contended that free-cash-flow generation was solid and Occidental Petroleum Corporation (NYSE:OXY) is positioning itself to become debt-free by paying off the company’s $5.0 billion debt before it commences its $3 billion share buyback program which was announced during the company’s most recent earnings call.
Here is what Smead Capital Management had to say about Occidental Petroleum Corporation (NYSE:OXY) in its third-quarter 2021 investor letter:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
You can also take a look at 10 Stocks Warren Buffett is Selling and 10 Best Stocks to Buy According to Billionaire Mario Gabelli.
