On October 16, 2023, renowned investor Bill Ackman (Trades, Portfolio) added 116,536 shares to his stake in Howard Hughes Holdings Inc (HHH, Financial), bringing his total holdings to 17,217,007 shares. The transaction, executed at a price of $68.33 per share, increased Ackman's position in the company by 0.68%, representing a 0.07% impact on his portfolio. The current ratio of the traded stock in Ackman's portfolio stands at 10.87%, while his holdings represent 34.37% of the company's total shares.
Howard Hughes Holdings Inc, a leading real estate company in the USA, owns, manages, and develops commercial, residential, and mixed-use real estate. The company's strategic positioning allows it to meet and accelerate development based on market demand, making it one of the strongest real estate platforms in the country. As of October 17, 2023, the company's market capitalization stands at $3.47 billion.
About Bill Ackman (Trades, Portfolio) and Pershing Square
Bill Ackman (Trades, Portfolio), co-investment manager for hedge-fund group Gotham Partners LP, formed Pershing Square in November 2003 with $54 million raised from three investors. Ackman, who started his career in the real estate business, is an activist investor known for buying common stocks of public companies and pushing for changes to realize their values. He typically buys stocks trading at a discount and sells when the companies reach their appraised value. Ackman's firm, Pershing Square, currently holds eight stocks with a total equity of $10.82 billion, primarily in the Consumer Cyclical and Communication Services sectors. His top holdings include Chipotle Mexican Grill Inc (CMG, Financial), Howard Hughes Holdings Inc (HHH, Financial), Hilton Worldwide Holdings Inc (HLT, Financial), Lowe's Companies Inc (LOW, Financial), and Restaurant Brands International Inc (QSR, Financial).
Performance and Financial Health of Howard Hughes Holdings Inc
As of October 17, 2023, Howard Hughes Holdings Inc's stock price stands at $69.21, with a PE percentage of 28.72. The company's stock is modestly undervalued according to the GF-Score, with a GF Value of 79.63 and a price to GF Value ratio of 0.87. The stock has gained 1.29% since the transaction and 123.26% since its IPO in 2010. However, it has seen a year-to-date decline of 9.13%. The company's financial strength is rated 4/10, with a profitability rank of 6/10 and a growth rank of 5/10. Its GF Value rank and momentum rank stand at 6/10 and 10/10, respectively.
The company's interest coverage is 2.19, and its Altman Z score is 0.74. Its Piotroski F-Score is 5, indicating a stable financial situation. The company's cash to debt ratio is 0.08, placing it at rank 1326 in the industry. The company's ROE and ROA stand at 3.41 and 1.24, respectively.
Stock Performance Metrics and Momentum
Over the past three years, Howard Hughes Holdings Inc has seen a revenue growth of 1.90%, EBITDA growth of 9.30%, and earning growth of 28.80%. The company's gross margin growth is 2.00, while its operating margin growth is 0.00. The company's RSI 5 day, RSI 9 day, and RSI 14 day stand at 11.97, 19.06, and 25.40, respectively. Its momentum index for 6 - 1 month is 0.11, and for 12 - 1 month is 37.91.
Other Gurus' Involvement
Other notable gurus who also hold shares in Howard Hughes Holdings Inc include Barrow, Hanley, Mewhinney & Strauss, Donald Smith & Co, and Joel Greenblatt (Trades, Portfolio). The largest stake in the company is held by Pershing Square Capital Management, L.P., Ackman's firm.
Conclusion
In conclusion, Bill Ackman (Trades, Portfolio)'s recent acquisition of additional shares in Howard Hughes Holdings Inc is a significant move that further solidifies his position in the company. The transaction not only impacts his portfolio but also influences the stock's performance. Despite a year-to-date decline, the company's stock has shown promising growth since its IPO and is currently modestly undervalued according to the GF-Score. With a strong momentum rank and stable financial situation, the company presents potential future performance for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
