Noted investor Bill Ackman (Trades, Portfolio) has recently increased his stake in Howard Hughes Holdings Inc (HHH, Financial), a leading real estate company in the USA. This article will delve into the details of this transaction, provide an overview of both the guru and the traded company, and analyze the potential implications of this move.
Transaction Details
On September 28, 2023, Bill Ackman (Trades, Portfolio) added 98,826 shares of Howard Hughes Holdings Inc to his portfolio at a trade price of $73.84 per share. This transaction has increased his total holdings in the company to 16,768,108 shares, representing 11.44% of his portfolio and 33.47% of the company's stock. The impact of this transaction on Ackman's portfolio is 0.07%, indicating a significant commitment to the real estate firm.
Profile of Bill Ackman (Trades, Portfolio)
Bill Ackman (Trades, Portfolio), the co-investment manager for hedge-fund group Gotham Partners LP, established Pershing Square in November 2003 with $54 million raised from three investors. Ackman is an activist investor who purchases the common stocks of public companies and advocates for changes to realize the companies' values. His investment philosophy revolves around buying stocks trading at a discount and selling when the companies reach their appraised value. Ackman's portfolio, valued at $10.82 billion, consists of eight stocks, with his top holdings being Chipotle Mexican Grill Inc, Howard Hughes Holdings Inc, Hilton Worldwide Holdings Inc, Lowe's Companies Inc, and Restaurant Brands International Inc. His investments are primarily in the Consumer Cyclical and Communication Services sectors.
Overview of Howard Hughes Holdings Inc
Howard Hughes Holdings Inc is a prominent real estate company in the USA that owns, manages, and develops commercial, residential, and mixed-use real estate. The company's portfolio is strategically positioned to meet and accelerate development based on market demand, making it one of the strongest real estate platforms in the country. The company operates through several segments, including Master Planned Communities (MPC), Operating Assets, Seaport, Strategic Developments, and Corporate revenues. As of September 29, 2023, the company's market capitalization stands at $3.73 billion, with a stock price of $74.4.
Analysis of Howard Hughes Holdings Inc's Stock
Howard Hughes Holdings Inc's stock has a PE percentage of 30.87, indicating that the company is profitable. The stock is modestly undervalued according to GuruFocus's GF Valuation, with a GF Value of $84.11 and a Price to GF Value ratio of 0.88. The stock has gained 0.76% since the transaction and has grown 140% since its IPO. However, the stock has declined by 2.31% year-to-date. The company's GF Score is 75/100, suggesting a likely average performance. The company's Financial Strength is ranked 3/10, its Profitability Rank is 6/10, and its Growth Rank is 5/10.
Comparison with Other Gurus
The largest guru holding shares of Howard Hughes Holdings Inc is Pershing Square Capital Management, L.P. Other gurus who also hold the traded stock include Barrow, Hanley, Mewhinney & Strauss, Donald Smith & Co, and Joel Greenblatt (Trades, Portfolio).
Conclusion
In conclusion, Bill Ackman (Trades, Portfolio)'s recent acquisition of additional shares in Howard Hughes Holdings Inc signifies his confidence in the company's potential. This move could have significant implications for both the guru's portfolio and the traded company. As always, investors are advised to conduct their own comprehensive analysis before making investment decisions.
