In this article, we discuss the 3 stocks that Mario Gabelli was right about. If you want to read about some more stocks that Mario Gabelli was right about, go directly to Mario Gabelli Was Right About These 5 Stocks.
3. Callon Petroleum Company (NYSE:CPE)
Number of Hedge Fund Holders: 22
Percentage Increase in Share Price (YTD): 20.74%
Callon Petroleum Company (NYSE:CPE) is an oil and gas firm. Regulatory filings show that GAMCO Investors owned 5,340 shares of Callon Petroleum Company (NYSE:CPE) at the end of March 2022 worth $315,000, representing a small portion of the portfolio. The company posted earnings for the first quarter of 2022 on May 4, reporting earnings per share of $3.43, beating market estimates by $0.08. The revenue over the period was $664 million, up over 84% compared to the revenue over the same period last year.
On March 8, Truist analyst Neal Dingmann upgraded Callon Petroleum Company (NYSE:CPE) stock to Buy from Hold and raised the price target to $100 from $64, noting that the Buy rating was warranted based on forecasts for earnings, free cash flow, and trading multiples.
At the end of the first quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $156 million in Callon Petroleum Company (NYSE:CPE), compared to 24 in the previous quarter worth $80 million. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Callon Petroleum Company (NYSE:CPE), with 762,670 shares worth more than $45 million.
2. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 46
Percentage Increase in Share Price (YTD): 69.71%
APA Corporation (NASDAQ:APA) develops and produces oil and gas properties. Securities filings reveal that GAMCO Investors owned 42,050 shares of APA Corporation (NASDAQ:APA) at the end of March 2022 worth $1.7 million, representing 0.01% of the portfolio. The fund last held a stake in the firm during the first quarter of 2021. That position, sold in the next quarter, consisted of over 10,300 shares purchased at an average price of $18.26 per share. The present stake was purchased at an average price of $34.89 per share.
On May 31, Mizuho analyst Vincent Lovaglio maintained a Buy rating on APA Corporation (NASDAQ:APA) stock and raised the price target to $60 from $56, noting that global energy undersupply was continuing to drive energy commodity prices higher.
At the end of the first quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in APA Corporation (NASDAQ:APA), compared to 42 in the previous quarter worth $810 million. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in APA Corporation (NASDAQ:APA), with 19.5 million shares worth more than $806 million.
Here is what Oakmark Funds has to say about APA Corporation (NASDAQ:APA) in its Q1 2022 investor letter:
“Our oil holding, APA Corporation (NASDAQ:APA) (+54%) was one of our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”
1. Comstock Resources, Inc. (NYSE:CRK)
Number of Hedge Fund Holders: 25
Percentage Increase in Share Price (YTD): 139.84%
Comstock Resources, Inc. (NYSE:CRK) is a Texas-based independent energy company. The hedge fund of Mario Gabelli entered the second quarter of 2022 with over 23,800 shares of Comstock Resources, Inc. (NYSE:CRK) in the portfolio worth $312,000, representing a minor portion of the portfolio. On May 3, the firm posted earnings for the first quarter of 2022, reporting earnings per share of $0.51, in line with market expectations. The revenue over the period was $524 million, beating estimates by $68 million.
On May 31, Mizuho analyst Vincent Lovaglio maintained a Buy rating on Comstock Resources, Inc. (NYSE:CRK) stock and raised the price target to $23 from $20, noting that higher energy prices were benefiting exploration and production firms in the oil sector.
At the end of the first quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $116 million in Comstock Resources, Inc. (NYSE:CRK), up from 19 in the preceding quarter worth $92 million. Among the hedge funds being tracked by Insider Monkey, New York-based firm DE Shaw is a leading shareholder in Comstock Resources, Inc. (NYSE:CRK), with 4 million shares worth more than $52 million.
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