In this article, we discuss the top 5 stock picks of billionaire Richard Chilton. If you want to see more stocks in this selection, click Top 10 Stock Picks of Billionaire Richard Chilton.
5. Costco Wholesale Corporation (NASDAQ:COST)
Chilton Investment Company’s Stake Value: $241,484,000
Percentage of Chilton Investment Company’s 13F Portfolio: 5.07%
Number of Hedge Fund Holders: 57
Costco Wholesale Corporation (NASDAQ:COST) is an American multinational big-box retailer, offering branded and private-label merchandise products. Billionaire Richard Chilton’s Chilton Investment Company owns 425,373 shares of Costco Wholesale Corporation (NASDAQ:COST), worth $241.4 million, representing 5.07% of the total 13F securities.
On March 3, Costco Wholesale Corporation (NASDAQ:COST) reported earnings for the quarter ending February 2022. The company announced an EPS of $2.92 and a revenue of $51.90 billion, above consensus estimates by $0.18 and $395.81 million respectively.
Tigress Financial analyst Ivan Feinseth on April 14 raised the price target on Costco Wholesale Corporation (NASDAQ:COST) to $678 from $520 and reiterated a Buy recommendation on the shares. The analyst noted that Costco Wholesale Corporation (NASDAQ:COST) continues to experience robust consumer demand and membership growth.
According to the Q4 database of Insider Monkey, Costco Wholesale Corporation (NASDAQ:COST) was found in the public stock portfolios of 57 hedge funds, compared to 55 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading shareholder of the company, with more than 4 million shares worth $2.3 billion.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2021 investor letter:
“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”
4. The Home Depot, Inc. (NYSE:HD)
Chilton Investment Company’s Stake Value: $299,965,000
Percentage of Chilton Investment Company’s 13F Portfolio: 6.30%
Number of Hedge Fund Holders: 68
The Home Depot, Inc. (NYSE:HD) is the biggest American home improvement retailer, selling building materials, lawn and garden products, home maintenance solutions, and décor, among other offerings. Richard Chilton held 722,790 shares of The Home Depot, Inc. (NYSE:HD) in Q4 2021, worth about $300 million, representing 6.30% of the total 13F securities.
On February 22, The Home Depot, Inc. (NYSE:HD) declared a $1.90 per share quarterly dividend, a 15.2% increase from its prior dividend of $1.65. The dividend was distributed on March 24, to shareholders of record on March 10. The stock delivers a dividend yield of 2.48% as of April 28.
Wells Fargo analyst Zachary Fadem on April 7 maintained an Overweight rating on The Home Depot, Inc. (NYSE:HD) but lowered the firm’s price target on the shares to $350 from $400 based on 20-times his full year 2023 EPS estimate.
According to the fourth quarter database of Insider Monkey, The Home Depot, Inc. (NYSE:HD) was found in the public stock portfolios of 68 hedge funds, compared to 58 funds in the preceding quarter. Ric Dillon’s Diamond Hill Capital is a significant shareholder of the company, with 1.14 million shares worth $475.8 million.
Here is what Ensemble Capital has to say about The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter:
“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”
3. Microsoft Corporation (NASDAQ:MSFT)
Chilton Investment Company’s Stake Value: $340,522,000
Percentage of Chilton Investment Company’s 13F Portfolio: 7.15%
Number of Hedge Fund Holders: 262
Billionaire Richard Chilton’s Chilton Investment Company owns more than 1 million Microsoft Corporation (NASDAQ:MSFT) shares as of Q4 2021, worth $340.5 million, representing 7.15% of the total 13F holdings. The hedge fund first invested in Microsoft Corporation (NASDAQ:MSFT) back in Q4 2010, and has consistently held the position since Q3 2015.
On April 26, Microsoft Corporation (NASDAQ:MSFT) reported its Q1 2022 results, posting earnings per share of $2.22, beating market estimates by $0.02. Revenue for the period grew 18.35% year-over-year to $49.36 billion, above consensus by $311.18 million.
It was announced on April 28 that Activision Blizzard, Inc. (NASDAQ:ATVI)’s stockholders approved Microsoft Corporation (NASDAQ:MSFT)’s acquisition proposal. More than 98% of the shareholders voted in favor of the proposed transaction with Microsoft Corporation (NASDAQ:MSFT). It will be an all-cash transaction for $95.00 per share and it is expected to close in Microsoft Corporation (NASDAQ:MSFT)’s fiscal year ending June 30, 2023.
Morgan Stanley analyst Keith Weiss on April 27 maintained an Overweight rating and a $372 price target on Microsoft Corporation (NASDAQ:MSFT) shares after the company’s fiscal Q1 results. According to the analyst, Microsoft Corporation (NASDAQ:MSFT) has strong commercial bookings growth, accelerating Azure growth, and “robust” guidance for Q4 and FY23. Given what he sees as an “attractive multiple,” he remains a buyer at present levels.
Among the hedge funds tracked by Insider Monkey, 262 funds were bullish on Microsoft Corporation (NASDAQ:MSFT) at the end of December 2021, compared to 250 funds in the preceding quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a prominent shareholder of the company, with a position worth $5.7 billion.
Here is what Baron Opportunity Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter, following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue growing 20% in constant currency, beating Street estimates by 3%; an acceleration in Commercial Cloud revenue to 34% constant-currency growth; operating margins expanding to just under 45%; earnings growth of 23%; and free cash flow growth of 30%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by total addressable market expansion and continued market share gains across its disruptive cloud product portfolio.”
2. Ball Corporation (NYSE:BLL)
Chilton Investment Company’s Stake Value: $346,597,000
Percentage of Chilton Investment Company’s 13F Portfolio: 7.28%
Number of Hedge Fund Holders: 32
Ball Corporation (NYSE:BLL) was founded in 1880 and is headquartered in Westminster, Colorado. The company offers aluminum packaging to the beverage, personal care, and household products industries. Richard Chilton held 3.60 million shares of Ball Corporation (NYSE:BLL) in the fourth quarter of 2021, worth $346.5 million, representing 7.28% of the total 13F portfolio.
On April 27, Ball Corporation (NYSE:BLL) declared a $0.20 per share quarterly dividend, in line with previous. The dividend is payable on June 15, to shareholders of record on June 1.
Deutsche Bank analyst Kyle White on April 18 maintained a Buy recommendation on Ball Corporation (NYSE:BLL) but lowered the firm’s price target on the shares to $98 from $102.
According to Insider Monkey’s Q4 data, 32 hedge funds were bullish on Ball Corporation (NYSE:BLL), up from 27 funds in the prior quarter. The total stakes held in the fourth quarter amounted to $956 million, compared to $1.45 billion in the earlier quarter. Greg Poole’s Echo Street Capital Management held a prominent position in the company, with more than 1 million shares worth $100.2 million.
Here is what ClearBridge Investments has to say about Ball Corporation (NYSE:BALL) in its Q1 2021 investor letter:
“Aluminum beverage and food container manufacturer Ball Corp, meanwhile, delivered fourth-quarter operating income slightly lower than consensus, though this was mainly attributable to higher startup costs for large new facilities coming online in North America. These investments and additional capacity projects will contribute to strong volume growth globally, however. Aluminum cans are infinitely recyclable and offer the best replacement product for single-use plastic beverage containers, in our view. They are more likely to be recycled than single-use plastic and are more energy efficient in production as well.”
1. The Sherwin-Williams Company (NYSE:SHW)
Chilton Investment Company’s Stake Value: $412,046,000
Percentage of Chilton Investment Company’s 13F Portfolio: 8.65%
Number of Hedge Fund Holders: 53
The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based company that manufactures and distributes paints and coatings to professional, industrial, commercial, and retail customers. Richard Chilton’s hedge fund boosted its stake in The Sherwin-Williams Company (NYSE:SHW) by 2% in Q4 2021, holding 1.17 million shares worth $412 million. The stock represents 8.65% of the total 13F portfolio and it is the biggest position of the billionaire.
On April 28, Deutsche Bank analyst David Begleiter reiterated a Buy recommendation on The Sherwin-Williams Company (NYSE:SHW) but lowered the firm’s price target on the stock to $315 from $330 following the “solid” Q1 results.
The Sherwin-Williams Company (NYSE:SHW) reported Q1 earnings on April 26, posting an EPS of $1.61, beating market estimates by $0.08. The $5 billion revenue grew 7.36% year-over-year and surpassed analysts’ forecasts by $81 million.
According to Insider Monkey’s fourth quarter database, 53 hedge funds were bullish on The Sherwin-Williams Company (NYSE:SHW), up from 44 funds in the preceding quarter. Thomas Steyer’s Farallon Capital is a significant shareholder of the company, with 951,068 shares worth approximately $335 million.
You ca also take a look at 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital and 10 Best Stocks to Buy Now According to Billionaire David Harding.
