Top 5 Stock Picks of Mason Morfit’s ValueAct Capital

2. Seagate Technology Holdings plc (NASDAQ:STX)

ValueAct Capital’s Stake Value: $1,433,956,000

Percentage of ValueAct Capital’s 13F Portfolio: 16.60%

Number of Hedge Fund Holders: 27

Seagate Technology Holdings plc (NASDAQ:STX), an American data storage company, represents 16.60% of ValueAct Capital’s total Q3 investments, with the hedge fund holding 17.3 million shares of the company worth $1.43 billion. Seagate Technology Holdings plc (NASDAQ:STX) is one of the best stocks to buy according to ValueAct Capital. 

Posting its Q3 results on October 22, Seagate Technology Holdings plc (NASDAQ:STX) reported earnings per share of $2.35, exceeding estimates by $0.14. The quarterly revenue jumped 34.62% from the prior-year quarter, reaching $3.12 billion, surpassing estimates by $10.28 million.

Fox Advisors analyst Steven Fox on December 6 downgraded Seagate Technology Holdings plc (NASDAQ:STX) to Equal Weight from Overweight with no price target as he sees more limited upside following the stock’s 70% rise since the end of 2020. 

Jacob Mitchell’s Antipodes Partners recently acquired a position in  Seagate Technology Holdings plc (NASDAQ:STX), buying 717,129 shares of the company in Q3, worth $59.1 million. Overall, 27 hedge funds were bullish on Seagate Technology Holdings plc (NASDAQ:STX) as of September end, down from 31 funds in the previous quarter.

Here is what ClearBridge Investments has to say about Seagate Technology Holdings plc (NASDAQ:STX) in its Q1 2021 investor letter:

“Our high active share approach made the most difference in IT, where the portfolio’s holdings gained 4.5% compared to a loss for the benchmark. Results were led by our more cyclical positions in digital storage provider Seagate Technology.”