In this article, we discuss the top 5 stock picks of Andrew Immerman’s Palestra Capital. If you want to read our detailed analysis of Immerman’s investment strategy, history, and stock picks, go directly to Top 10 Stock Picks of Andrew Immerman’s Palestra Capital.
5. Workday, Inc. (NASDAQ:WDAY)
Palestra Capital’s Stake Value: $265.46 million
Palestra Capital’s 13F Portfolio: 5.63%
Number of Hedge Fund Holders: 72
Workday, Inc. (NASDAQ:WDAY) develops enterprise cloud applications that help optimize human and financial resources. The firm reported earnings per share of $1.10 in the third quarter, surpassing estimates by $0.23. It also beat quarterly revenue estimates by $15.64 million, with revenue coming in at $1.33 billion.
According to regulatory data for the third quarter, Palestra Capital holds 1.06 million shares of Workday, Inc. (NASDAQ:WDAY), valued at $265.46 million and amounting to 5.63% of the fund’s total holdings. 72 hedge funds were long Workday, Inc. (NASDAQ:WDAY) at the close of the third quarter, holding stakes worth $6.38 billion.
In November, Needham analyst Scott Berg raised the firm’s price target on Workday, Inc. (NASDAQ:WDAY) to $360 from $310, and maintained a ‘Buy’ rating on the shares, noting impressive Q3 results which showed accelerated 24-month subscription growth, and increased subscription revenue growth.
4. Fidelity National Information Services, Inc. (NYSE:FIS)
Palestra Capital’s Stake Value: $288.97 million
Palestra Capital’s 13F Portfolio: 6.13%
Number of Hedge Fund Holders: 69
Fidelity National Information Services, Inc. (NYSE:FIS) offers technology solutions through its segments: Merchant, Banking, and Capital Markets. As of the third quarter, 69 out of 867 hedge funds tracked by Insider Monkey were bullish on the company stock, compared to 72 in the preceding quarter. In the third quarter, Andrew Immerman’s Palestra Capital reported owning 2.37 million shares in Fidelity National Information Services, Inc. (NYSE:FIS), valued at $288.97 million. This shows an increase of 7% as compared to the second quarter where the fund held 2.22 million shares.
Fidelity National Information Services, Inc. (NYSE:FIS) posted an EPS of $1.73 for the third quarter, beating analysts’ forecasts by $0.05.
Investment firm Baron Funds mentioned Fidelity National Information Services, Inc. (NYSE:FIS) in its third quarter investor letter. Here’s what the fund said:
“Fidelity National Information Services, Inc. provides software to financial institutions and enables merchants to accept electronic payments. The company reported solid quarterly financial results that exceeded expectations and raised annual guidance for revenue and earnings. However, the stock fell due to concerns that Fidelity National’s legacy technology is losing market share to newer competitors with more modern technology. We believe these concerns are overblown and that Fidelity National remains well positioned to grow revenues organically at a high single-digit rate and earnings at a double-digit rate over time.”
3. Avantor, Inc. (NYSE:AVTR)
Palestra Capital’s Stake Value: $319.25 million
Palestra Capital’s 13F Portfolio: 6.77%
Number of Hedge Fund Holders: 53
Up next we have Avantor, Inc. (NYSE:AVTR), which deals in the provision of products and services to the biopharma, education, healthcare, and applied materials industries around the globe. Palestra Capital’s 7.8 million shares in the firm represent 6.77% of the fund’s overall portfolio.
On December 9, Cowen analyst Dan Brennan reiterated an ‘Outperform’ rating on Avantor, Inc. (NYSE:AVTR) stock, and increased the price target to $50 from $48, seeing upside as the company strategically invests in its proprietary products that drive better growth and margins. Avantor, Inc. (NYSE:AVTR) reported earnings per share of $0.35 for the third quarter, surpassing estimates by $0.03.
Hedge funds were loading up on Avantor, Inc. (NYSE:AVTR) stock. 53 hedge funds held stakes in the company in the third quarter, which is up from 44 hedge funds bullish on Avantor, Inc. (NYSE:AVTR) a quarter ago.
Investment management firm ClearBridge Investments discussed Avantor, Inc. (NYSE:AVTR) in its investor letter for the third quarter. It said:
“Avantor, which distributes proprietary, higher-margin consumables products to life science research companies, has benefited from accretive research & development as well as paying down debt, which has contributed to increased margins and strong stock performance.”
2. Alliance Data Systems Corporation (NYSE:ADS)
Palestra Capital’s Stake Value: $354.57 million
Palestra Capital’s 13F Portfolio: 7.52%
Number of Hedge Fund Holders: 31
Alliance Data Systems Corporation (NYSE:ADS) is Andrew Immerman’s second largest holding, with 3.51 million shares valued at $354.57 million, representing a 7.52% slice of his overall portfolio at Palestra Capital. The company deals in the provision of data-driven marketing, loyalty, and payment solutions to clients around the world.
In the third quarter, Alliance Data Systems Corporation (NYSE:ADS) reported earnings per share (GAAP) of $4.47, exceeding consensus estimates by $1.25.
31 hedge funds were long Alliance Data Systems Corporation (NYSE:ADS) at the close of the third quarter, holding positions worth $1.11 billion. In comparison, 34 hedge funds held stakes worth $1.33 billion in the company a quarter ago.
1. DISH Network Corporation (NASDAQ:DISH)
Palestra Capital’s Stake Value: $437.51 million
Palestra Capital’s 13F Portfolio: 9.28%
Number of Hedge Fund Holders: 51
DISH Network Corporation (NASDAQ:DISH) provides pay-TV services in the United States and operates through its segments: Pay-TV and Wireless. According to regulatory data filed for the third quarter, Palestra Capital owns 10.06 million shares in DISH Network Corporation (NASDAQ:DISH), amounting to a value of $437.51 million which represents 9.28% of the fund’s overall portfolio.
On November 10, Deutsche Bank analyst Bryan Kraft maintained a ‘Buy’ rating on DISH Network Corporation (NASDAQ:DISH) shares while lowering the price target to $71 from $77, citing the company’s $4 billion spectrum purchase as the reason for the change in price target. DISH Network Corporation’s (NASDAQ:DISH) revenue for the third quarter stood at $4.45 billion, missing estimates by $1.79 million. EPS came in at $0.88, falling below consensus estimates by $0.02.
You can also take a look at 10 Best Tech Stocks To Invest in Now and Billionaire Daniel Sundheim’s Top 10 Picks.
