David Abrams Portfolio Analysis (December 31, 2021)

Famous superinvestor, David Abrams, revealed in a recent regulatory filing his newest positions.  In David Abrams portfolio 2021 analysis, we will go into more detail about top 5 stocks this superinvestor had as of December 31, 2021.

Abrams manages his investments via his fund, Abrams Capital Management, which holds about $4.6 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in David Abrams’s Q4 portfolio include Lithia Mtrs Inc, Alphabet Inc, Meta Platforms Inc, Asbury Automotive Group Inc and Change Healthcare Inc. In addition to others mentioned in detail below.

We used the Q4 portfolio of David Abrams’s Abrams Capital Management to select his top 5 value stocks. We ranked the securities according to Abrams’s stake value in each holding.

Summary

  • David Abrams’s top 5 securities make up 49.5% of the entire portfolio.
  • Abrams Capital Management owns position in 18 holdings, managing approximately $4.6 billion.
  • Lithia Mtrs Inc, Abrams’s largest holding, makes up 15.3% of the total portfolio.

Lithia Mtrs Inc (LAD)

Abrams Capital Management’s stake value: $698.1 Million

Percentage of Abrams Capital Management’s 13F Portfolio: 15.3%

Lithia Motors, Inc. does business in New Car Dealers industry, which is Retail Trade sector and has 14538 employees. Current CEO is Bryan DeBoer.

As of February 13, 2022 Lithia Mtrs Inc had a market cap of $9.606 Million. Analysts predicted 1 year target price of $445.75 that exceeds the current price of $311.56 for 43.1%. Trailing twelve months P/E ratio is currently 8.63 making it much cheaper stock than the rest of the S&P500 index. Looking at revenue, Lithia Mtrs Inc generated significant amount of revenue, $22831 million in 2021, surging by 74.0% in comparison to 2020 when it was $13124 million. Net income surged according to the latest fillings, jumping in 2021 by around 125.4% adding up to total of $1060.1 million. Further, in 2021, the net profit margin, was at 4.6%, shows an improvement compared the company’s previous years of operation.

Lithia Motors, Inc. is one of the largest providers of personal transportation solutions in the United States and is among the fastest growing companies.

Alphabet Inc (GOOGL)

Abrams Capital Management’s stake value: $424.2 Million

Percentage of Abrams Capital Management’s 13F Portfolio: 9.3%

Alphabet Inc does business in All Other Telecommunications industry, which is Information sector and has 135301 employees. Current CEO is Sundar Pichai.

As of February 13, 2022 Alphabet Inc had a market cap of $1.774T Million. Analysts predicted 1 year target price of $3454.88 that exceeds the current price of $2772.0 for 24.6%. Trailing twelve months P/E ratio is currently 23.94 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Alphabet Inc generated significant amount of revenue, $257637 million in 2021, surging by 41.2% in comparison to 2020 when it was $182527 million. Net income surged according to the latest fillings, jumping in 2021 by around 88.8% adding up to total of $76033.0 million. Further, in 2021, the net profit margin, was at 29.5%, shows an improvement compared the company’s previous years of operation.

Meta Platforms Inc (FB)

Abrams Capital Management’s stake value: $405.3 Million

Percentage of Abrams Capital Management’s 13F Portfolio: 8.9%

Meta Platforms Inc does business in Data Processing, Hosting, and Related Servicesindustry, which is Information sector and has 58604 employees. Current CEO is Mark Zuckerberg.

As of February 13, 2022 Meta Platforms Inc had a market cap of $597.602 Million. Analysts predicted 1 year target price of $338.69 that exceeds the current price of $228.46 for 48.2%. Trailing twelve months P/E ratio is currently 15.94 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Meta Platforms Inc generated significant amount of revenue, $117929 million in 2021, surging by 37.2% in comparison to 2020 when it was $85965 million. Net income surged according to the latest fillings, jumping in 2021 by around 35.1% adding up to total of $39370.0 million. Besides, profit margin, which levels at 33.4%, shows an improvement, comparing to the the previous years.

Founded in 2004, Facebook’s mission is to give people the power to build community and bring the world closer together. People use Facebook’s apps and technologies to connect with friends and family, find communities and grow businesses.

Asbury Automotive Group Inc (ABG)

Abrams Capital Management’s stake value: $365.9 Million

Percentage of Abrams Capital Management’s 13F Portfolio: 8.0%

Asbury Automotive Group Inc does business in New Car Dealers industry, which is Retail Trade sector and has 7750 employees. Current CEO is David Hult.

As of February 13, 2022 Asbury Automotive Group Inc had a market cap of $3.738 Million. Analysts predicted 1 year target price of $238.75 that exceeds the current price of $162.95 for 46.5%. Trailing twelve months P/E ratio is currently 6.53 making it much cheaper stock than the rest of the S&P500 index. Regarding revenue, Asbury Automotive Group Inc generated $7131 million revenue in 2020 which is a decrease of -1.1% compared to 2019 when it was $7210 million. Net income surged according to the latest fillings, jumping in 2020 by around 38.0% adding up to total of $254.4 million. Further, in 2020, the net profit margin, was at 3.6%, shows an improvement compared the company’s previous years of operation.

Asbury operates 25 collision repair centers and offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.

Change Healthcare Inc (CHNG)

Abrams Capital Management’s stake value: $363.0 Million

Percentage of Abrams Capital Management’s 13F Portfolio: 8.0%

Change Healthcare Inc does business in Information sector and has 15000 employees.

As of February 13, 2022 Change Healthcare Inc had a market cap of $6.363 Million. Analysts predicted 1 year target price of $25.8 that exceeds the current price of $20.48 for 26.0%. Looking at revenue, Change Healthcare Inc generated significant amount of revenue, $3090 million in 2021, surging by 1476.5% in comparison to 2020 when it was $196 million. Net income dropped according to the latest fillings, sinking in 2021 by around -88.2% totalling $-112.21 million. Further, in 2021, the net profit margin, was at 3.6%, shows an improvement compared the company’s previous years of operation.

Change Healthcare is a leading independent healthcare technology company, focused on insights, innovation and accelerating the transformation of the U.S. healthcare system through the power of the Change Healthcare Platform. The company provides data and analytics-driven solutions to improve clinical, financial, administrative, and patient engagement outcomes in the U.S. healthcare system.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 13, 2022.

Stock% of portfolioMarket Cap (USD)P/ENet earnings (USDm)Net earnings y/yProfit margin
Lithia Mtrs Inc (LAD)15.3%9.606B8.61060125.4%4.6%
Alphabet Inc (GOOGL)9.3%1.774T23.97603388.8%29.5%
Meta Platforms Inc (FB)8.9%597.602B15.93937035.1%33.4%
Asbury Automotive Group Inc (ABG)8.0%3.738B6.525438.0%3.6%
Change Healthcare Inc (CHNG)8.0%6.363Bnan-112-88.2%3.6%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

Disclosure & Disclaimer: Please take into consideration that this is not financial, investing, or tax advice. The information on this website is for informational and recreational purposes only. Before any financial decision do your own due diligence. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.