In this article, we discuss 3 stocks that Warren Buffett is selling in 2022. If you want to see more stocks that the billionaire sold, click Warren Buffett is Selling These 6 Stocks in 2022.
3. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 21
Stake Discarded in Q1 2022: 83%
Royalty Pharma plc (NASDAQ:RPRX) is a New York-based firm that buys biopharmaceutical royalties and funds innovations in the biopharmaceutical industry in the United States. It makes drug candidates for various therapeutic areas including rare diseases, cancer, neurology, infectious diseases, hematology, and diabetes.
Securities filings for Q1 2022 reveal that Warren Buffett sold 83% of his Royalty Pharma plc (NASDAQ:RPRX) stake, holding 1.49 million shares worth $58.2 million. Berkshire Hathaway invested initially in Royalty Pharma plc (NASDAQ:RPRX) in Q3 2021, buying over 13 million shares of the company.
On May 5, Royalty Pharma plc (NASDAQ:RPRX) reported its Q1 2022 results, announcing an EPS of $0.60, missing estimates by $0.11. The $562 million revenue also fell short of analysts’ predictions by $30.97 million.
Scotiabank analyst Adam Buckham on May 13 initiated coverage of Royalty Pharma plc (NASDAQ:RPRX) with an Outperform rating and a $53 price target. According to the analyst, Royalty Pharma plc (NASDAQ:RPRX) allows investors diversified access to the biopharmaceutical sector and a “robust” financial profile. Royalty Pharma plc (NASDAQ:RPRX)’s portfolio includes 45 approved and pre-approval products, “which collectively provide investors with exposure to a broad range of therapeutic areas and markers”, the analyst added.
In Q1 2022, Phill Gross and Robert Atchinson’s Adage Capital Management disclosed a prominent Royalty Pharma plc (NASDAQ:RPRX) stake, with 24.8 million shares worth $967.8 million. In the last quarter of 2021, 21 hedge funds were bullish on the stock, with combined stakes valued at over $2 billion.
2. STORE Capital Corporation (NYSE:STOR)
Number of Hedge Fund Holders: 17
Stake Discarded in Q1 2022: 40%
STORE Capital Corporation (NYSE:STOR) is a net lease real estate investment trust that invests in single tenant properties across the United States. All properties owned and managed by STORE Capital Corporation (NYSE:STOR) are profit centers. In Q1 2022, Warren Buffett dumped 40% of his STORE Capital Corporation (NYSE:STOR) stake, holding 14.75 million shares worth $431.2 million. Berkshire Hathaway first added the stock to its portfolio in Q2 2017.
On May 4, STORE Capital Corporation (NYSE:STOR) reported its Q1 results. The company posted a Q1 FFO of $0.57, beating estimates by $0.05. The revenue of $222.12 million climbed 21.9% year-over-year, topping market consensus by $10.01 million.
BMO Capital analyst John Kim on March 7 downgraded STORE Capital Corporation (NYSE:STOR) to Underperform from Market Perform with a price target of $29, down from $37. An “increasingly challenging” macro environment may impact the company’s earnings growth, the analyst told investors, citing the “lower-quality” portfolio. In case of a recession, STORE Capital Corporation (NYSE:STOR) may see lower rent collections, like it did in 2020, added Kim.
According to Insider Monkey’s Q4 data, 17 hedge funds were bullish on STORE Capital Corporation (NYSE:STOR), compared to 16 funds in the last quarter. In Q1 2022, Dmitry Balyasny’s Balyasny Asset Management was a notable stakeholder of the company, with 3.35 million shares worth over $98 million.
1. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 66
Stake Discarded in Q1 2022: 100%
Bristol-Myers Squibb Company (NYSE:BMY) is a New York-based biopharmaceutical company, offering drugs and therapies for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and COVID-19 diseases.
In the first fiscal quarter of 2022, Berkshire Hathaway sold out of its Bristol-Myers Squibb Company (NYSE:BMY) stake entirely. The hedge fund first invested in the stock in Q3 2020, buying almost 30 million shares at an average price of $60.19 per share.
On April 29, Bristol-Myers Squibb Company (NYSE:BMY) reported earnings for Q1, posting an EPS of $1.96, beating estimates by $0.07. The revenue of $11.65 billion also exceeded market consensus by $308.41 million.
Wells Fargo analyst Mohit Bansal on May 17 raised the price target on Bristol-Myers Squibb Company (NYSE:BMY) to $70 from $65 and maintained an Equal Weight rating on the shares. The analyst sees long-term challenges with the stock, which has outperformed year-to-date primarily due to the surge in value stocks. The analyst also told investors that the new product portfolio could miss the mark of $10 billion-$13 billion by 2025.
In Q1 2022, John Overdeck and David Siegel’s Two Sigma Advisors reported a significant Bristol-Myers Squibb Company (NYSE:BMY) stake, with 4.3 million shares worth $318.4 million. Overall, 66 hedge funds held long positions in the company in Q4 2021.
Here is what Saturna Capital Amana Funds has to say about Bristol-Myers Squibb Company (NYSE:BMY) in its Q4 2021 investor letter:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our positions in Bristol Myers. We believe there are better opportunities than Bristol in pharmaceuticals.”
You can also take a look at Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio and 10 Finance Stocks to Buy Today According to George Soros’ Soros Fund Management.
