In this article, we’re going to look at 12 stocks the Motley Fool says are for sale. To skip our detailed analysis of the current market dynamics to 2023, you can go directly to the page 5 stocks to sell according to the Motley Fool
Motley Fool Asset Management focuses on high-quality growth companies and constantly reviews its current holdings in light of current stock market trends to ensure it’s maximizing profits and minimizing losses.
In 2022, the stock market undeniably entered bearish territory. With most investors opting for safer investment strategies today and the economy slowly starting to recover, major financial institutions have hope for the economy and the market in 2023. According to a JPMorgan report on long-term capital market assumptions for 2023, published in published in 2022, the long-term global inflation forecast for 2023 is 2.6%. JPMorgan analysts expect today’s inflation rates to ease significantly over the next two years. They also raised their projected annual return for a 60/40 equity-bond portfolio in US dollars over the next 10-15 years from 4.3% to 7.2%.
12 Stocks to Sell According to the Motley Fool5 stocks to sell according to the Motley Fool
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Our methodology
We used Motley Fool Asset Management’s 13F holdings data for Q3 2022 to select the stocks for our list below. The Investment Manager either fully sold or reduced its interest in these companies during the third quarter of 2022. We also used Insider Monkey’s third-quarter hedge fund data to plot hedge fund sentiment for these stocks. They are ranked from lowest to highest based on the number of hedge funds that have stakes in them.
Stocks for sale according to the Motley Fool
12. Cardlytics, Inc. (NASDAQ:CDLX)
Number of hedge fund holders: 24
Cardlytics, Inc. (NASDAQ:CDLX) is an advertising company based in Atlanta, Georgia. The company offers the Cardlytics platform, a proprietary native bank advertising channel. The platform enables marketers to reach customers through their network of financial institution partners using digital channels such as mobile apps and email.
The story goes on
Motley Fool Asset Management reduced its stake in Cardlytics, Inc. (NASDAQ:CDLX) by 51% in the third quarter. Analysts are forecasting a bleak earnings outlook for the company in 2023, expecting it to fall $2.35 per share this year and $2.09 per share in 2024. As of December 2022, Cardlytics, Inc. (NASDAQ:CDLX) had $255 million in liabilities compared to $249 million in assets. This also points to a weak short-term financial position.
Cardlytics, Inc. (NASDAQ:CDLX) was found among the 13F holdings from 24 hedge funds with a combined value of $126.7 million in the third quarter.
Headwaters Capital, an investment management firm, mentioned Cardlytics, Inc. (NASDAQ:CDLX) in its fourth-quarter 2021 investor letter. Here’s what the firm said:
“Sold: Cardlytics (“CDLX”). The CDLX position was sold during the quarter as it had become an opportunity cost in the portfolio. CDLX was a small position at the start of the year and has underperformed over the year due to some poor strategic acquisitions combined with a depressed spending environment from its customer base. The acquisitions were of particular concern as the company failed to provide a clear strategic rationale for the deals and delayed the company’s path to profitability as both acquired companies are making losses. Given the small size of the position and the need for capital for more attractive investment opportunities, the entire CDLX position was sold during the quarter.”
11. Landstar System, Inc. (NASDAQ:LSTR)
Number of hedge fund holders: 25
Landstar System, Inc. (NASDAQ:LSTR) is a freight forwarding company based in Jacksonville, Florida. The company offers integrated transportation management solutions in the United States, Canada, Mexico and internationally. It operates through transportation logistics and insurance segments.
Baird analyst Garrett Holland kept a neutral rating on Landstar System, Inc. (NASDAQ:LSTR) shares on February 3.
Motley Fool Asset Management reduced its holding in Landstar System, Inc. (NASDAQ:LSTR) by 5% in the third quarter.
During the third quarter, there were 25 hedge funds long Landstar System, Inc. (NASDAQ:LSTR) for a total of $250.9 million.
Wedgewood Partners, an investment management firm, mentioned Landstar System, Inc. (NASDAQ:LSTR) in its second-quarter 2022 investor letter. Here’s what the company said:
“Landstar System, Inc. (NASDAQ:LSTR) reported revenue growth of +53% for the quarter, which led to earnings per share growth of over 60%. Despite strong results in recent quarters, the stock peaked back in November 2021 as investors began timing the end of the economic cycle by using Landstar as a proxy for economic activity. We are less concerned about where we are in this particular macroeconomic cycle, not only because the market has already priced in a slowdown, but also because underinvestment in long-distance drivers is a decades-old phenomenon that is unlikely to be resolved, even if it is consumer demand will normalize over the next few quarters. We believe Landstar should deliver excess returns over time as it has been one of the few companies to consistently invest in riders without a parallel increase in competitiveness.”
10. UiPath Inc. (NYSE:PATH)
Number of hedge fund holders: 26
UiPath Inc. (NYSE:PATH) is a systems software company based in New York. It offers an end-to-end automation platform that offers Robotic Process Automation (RPA) solutions. The company mainly operates in the USA, Romania and Japan.
Barclays’ Raimo Lenschow has had an Equal Weight rating on UiPath Inc. (NYSE:PATH) shares as of January 10.
Motley Fool Asset Management divested itself of its stake in UiPath Inc. (NYSE:PATH) in the third quarter, selling the stock outright.
ARK Investment Management was the largest shareholder of UiPath Inc. (NYSE:PATH) during the third quarter with 44.1 million shares. In all, 26 hedge funds were long the stock for a total of $993.5 million.
9. Penumbra, Inc. (NYSE:PEN)
Number of hedge fund holders: 27
Penumbra, Inc. (NYSE:PEN) is a healthcare company based in Alameda, California. The company develops and sells medical devices in the United States and internationally. It offers suction-based thrombectomy systems and accessories.
Motley Fool Asset Management reduced its stake in Penumbra, Inc. (NYSE:PEN) shares by about 5% during the third quarter. The share accounts for only around 0.4% of the investment company’s portfolio. In February of this year, UBS analysts also named Penumbra, Inc. (NYSE:PEN) as one of this year’s earnings-at-risk stocks.
A total of 27 hedge funds held shares in Penumbra, Inc. (NYSE:PEN) during the third quarter. Their total bet value was $549 million.
ClearBridge Investments, an investment management firm, mentioned Penumbra, Inc. (NYSE:PEN) in its fourth-quarter 2021 investor letter. Here’s what the firm said:
“Our aversion to early-stage biotech has paid off, as has our approach of prioritizing the enablers and selected, profitable medtech companies. Strong contributions included during the fourth quarter penumbraa developer of stents and related products to treat aneurysms, who is recovering from a product recall earlier this year.”
8. Trex Company, Inc. (NYSE:TREX)
Number of hedge fund holders: 28
Trex Company, Inc. (NYSE:TREX) is a building products company headquartered in Winchester, Virginia. It manufactures and sells decking, railings and outdoor living products and accessories for the residential and commercial markets. The Company operates through its Trex Residential and Trex Commercial segments.
On January 30, Loop Capital analyst Jeffrey Stevenson reiterated a hold rating on Trex Company, Inc. (NYSE:TREX) shares.
Motley Fool Asset Management reduced its stake in Trex Company, Inc. (NYSE:TREX) by 36% in the third quarter.
During the third quarter, 28 hedge funds were long Trex Company, Inc. (NYSE:TREX). Their total bet value was $256.9 million.
Baron Funds, an investment management company, mentioned Trex Company, Inc. (NYSE:TREX) in its fourth-quarter 2022 investor letter. Here’s what the company said:
“Shares of two leading home-related building products companies declined in the most recent quarter, in part on concerns about the home-related slowdown and the corresponding expected slowdown in their growth:
Trex Company, Inc. (NYSE:TREX): the leading manufacturer of wood-alternative outdoor decking and railings in the United States by market share. Pool Corporation: the world’s largest distributor of swimming pool accessories, equipment and related recreational products and is also one of the top three distributors of irrigation and landscaping suppliers in the United States
We bought shares in Trex and Pool at prices that we believe are attractive relative to their long-term growth prospects.”
7. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
Number of hedge fund holders: 31
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is a biotechnology company based in Novato, California. It works to identify, acquire, develop and commercialize novel products to treat rare and ultra-rare genetic diseases. The company operates in North America, Europe and internationally.
During the third quarter, Motley Fool Asset Management reduced its holding in Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) by about 52%. Avisol Capital Partners views the stock as flat due to a lack of key near-term catalysts. They consider Ultragenyx Pharmaceutical Inc.’s (NASDAQ:RARE) third-quarter operating expenses, which came in at $315.8 million, to be excessive. That’s because those expenses coupled with third-quarter earnings of $90.7 million ensure the company’s cash on hand will only last it about three to four quarters at best.
Our hedge fund data shows 31 funds that were long Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) in the third quarter with total holdings value of $409 million.
6. MarketAxess Holdings Inc. (NASDAQ:MKTX)
Number of hedge fund holders: 32
MarketAxess Holdings Inc. (NASDAQ:MKTX) is a New York-based financial exchange and data company. The Company operates an electronic trading platform for institutional investors and broker-dealer firms around the world.
Credit Suisse analyst Gautam Sawant gave a neutral rating to MarketAxess Holdings Inc. (NASDAQ:MKTX) shares on January 26.
MarketAxess Holdings Inc. (NASDAQ:MKTX) was among stocks sold outright by Motley Fool Asset Management in the third quarter.
A total of 32 funds were long MarketAxes Holdings Inc. (NASDAQ:MKTX) during the third quarter. Their total bet value was $847.6 million.
Baron Funds, an asset management company, mentioned MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q2 2022 Investor Letter. Here’s what the firm said:
“We have reduced our position in MarketAxess Holdings Inc. (MKTX), an electronic trading platform for fixed income instruments, on concerns about a slight decline in the company’s relative market share.”
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Disclosure: none. 12 stocks to sell according to the Motley Fool was originally published on Insider Monkey.