Get Premium to unlock powerful stock data

FMR LLC's Top 5 Buys in September

Legendary investor Peter Lynch's firm reports several real-time buys

Author's Avatar
James Li
Oct 12, 2021

Summary

  • FMR LLC runs several funds, including the well-known Magellan Fund formerly managed by Peter Lynch.
  • The firm’s top buys in September included new buys in Toast, Graphic Bio and Absci.
Article's Main Image

FMR LLC, the Boston-based asset management company commonly known as Fidelity, disclosed this month that its top-five trades during September included new buys in Toast Inc. (

TOST, Financial), Graphite Bio Inc. (GRPH, Financial) and Absci Corp. (ABSI, Financial), as well as major position boosts in ZoomInfo Technologies Inc. (ZI, Financial) and Celldex Therapeutics Inc. (CLDX, Financial).

Founded in 1946, Fidelity operates several mutual funds, including the Trend Fund and the Magellan Fund. Legendary investor Peter Lynch managed the Magellan Fund from 1977 to 1990, averaging an 29% return per year using strategies like buying what one knows and growth at a reasonable price. Lynch applied a simple metric that determines the relative valuation of a stock based on an earnings line set a 15 times the price-earnings ratio.

1447953796184412160.png

FMR’s trades and portfolio data are available to GuruFocus Premium Plus members. As of September, Fidelity’s $1.27 trillion equity portfolio contains 4,765 stocks with a turnover of 5%. The top five sectors in terms of weight are technology, health care, consumer cyclical, communication services and financial services, representing 25.62%, 13.71%, 13.09%, 12.55% and 12.29% of the equity portfolio.

1447956387916156928.png

Toast

Fidelity purchased 8,099,812 shares of Toast (

TOST, Financial), giving the position 0.03% weight in the equity portfolio. Shares averaged $52.07 on Oct. 4.

1447960840077578240.png

The Boston-based fintech company provides solutions for payment processing, restaurant-grade hardware and other restaurant-related services. According to GuruFocus, the company has a strong cash-to-debt ratio.

1447963488637947904.png

Al Gore (Trades, Portfolio)’s Generation Investment Management owns 2,517,738 shares of Toast as of the second-quarter portfolio filing. Additionally, three insiders purchased shares of Toast over the past three months: The total number of shares purchased is 5,001.

1447963945561231360.png

Graphite Bio

The firm purchased 6,249,606 shares of Graphite Bio (

GRPH, Financial), giving the position 0.01% weight in the equity portfolio. Shares averaged $16.39 around Sept. 30.

1447995282103996416.png

The San Francisco-based clinical-stage biotech company develops therapies using its gene-editing platform. According to GuruFocus, the company’s cash-to-debt and interest coverage ratios outperform more than 95% of global competitors, suggesting good financial strength.

1447998015125065728.png

Gurus with holdings in Graphite Bio include

Steven Cohen (Trades, Portfolio)’s Point72 Asset Management and Paul Tudor Jones (Trades, Portfolio)’ Tudor Investment.

1447998716974731264.png

Absci

The firm purchased 9,498,383 shares of Absci (

ABSI, Financial), giving the position 0.01% weight in the equity portfolio. Shares averaged $11.63 on Sept. 30.

1448000845357518848.png

According to GuruFocus, the Vancouver, Washington-based biotech company’s cash-to-debt ratio of 0.58 underperforms more than 88% of global competitors.

1448001403615186944.png

Eight insiders purchased shares of Absci during the past three months. The total number of shares purchased is 5,035,600.

1448002128671936512.png

ZoomInfo Technologies

The firm purchased 5,827,308 shares of ZoomInfo Technologies (

ZI, Financial), boosting the position by 81.08%. Shares averaged $61.19 on Sept. 30.

1448003537165357056.png

GuruFocus ranks the Vancouver, Washington-based software company’s financial strength 4 out of 10 on the back of interest coverage and debt ratios underperforming more than 80% of global competitors despite the company having a high Altman Z-score of 8.45.

1448009766927339520.png

Celldex

The firm purchased 5,249,038 shares of Celldex (

CLDX, Financial), expanding the position by 1,433.01%. Shares averaged $53.99 on Sept. 30; the stock is significantly overvalued based on Tuesday’s price-to-GF Value ratio of 41.45.

1448012033474695168.png

GuruFocus ranks the Hampton, New Jersey-based biotech company’s financial strength 6 out of 10 on the back of a double-digit Altman Z-score and debt ratios that outperform more than 70% of global competitors.

1448013558024507392.png

Also check out:
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
Rating:
0 / 5 (0 votes)

Please Login to leave a comment

Author's Avatar