DnB Asset Management AS, a prominent asset management firm, has recently reduced its holdings in Grab Holdings Limited (NASDAQ:GRAB). According to the company’s Form 13F filed with the Securities & Exchange Commission for the second quarter of this year, their position in Grab decreased by a significant 90.2%. This translates to the sale of approximately 2,932,966 shares during that period. As a result, DnB Asset Management AS now holds 320,278 shares of Grab’s stock. At the time of filing, these shares were valued at $1,099,000.
Grab Holdings Limited operates as a provider of superapps across multiple Southeast Asian countries including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers an extensive Grab ecosystem which features superapps catered towards driver- and merchant-partners as well as consumers. This single platform grants access to various services such as mobility solutions, delivery services, digital financial services, and offerings for enterprises.
The decision made by DnB Asset Management AS to decrease its position in Grab is likely motivated by various factors that prompted a reassessment of their investment strategy. Investors regularly monitor their portfolios and adjust their positions based on changes in market conditions or specific company performance.
While it is important to note that we cannot definitively ascertain the underlying reasons behind DnB Asset Management AS’s decision from the available information alone; however investors may consider a range of factors when adjusting their holdings. Some potential rationales could include concerns about Grab’s financial performance or uncertainties within the Southeast Asian market.
As an asset management firm responsible for overseeing clients’ investments and delivering desired outcomes on their behalfs’, DnB Asset Management AS has a fiduciary duty to ensure prudent investment decisions are made. It is common for asset managers to periodically review and modify their portfolios as part of their risk management practices.
Investors and analysts closely follow 13F filings to gain insights into institutional investors’ actions, track their investment strategies, and identify potential market trends. However, it is crucial to exercise caution when drawing conclusions solely from these filings as they are subject to limitations. The information contained in a Form 13F represents the snapshot of holdings at the end of a quarter and does not provide real-time updates on subsequent transactions.
In conclusion, DnB Asset Management AS has significantly reduced its position in Grab Holdings Limited according to its recent filing with the Securities & Exchange Commission. This decision reflects the firm’s assessment of prevailing market conditions as well as their analysis of Grab’s financial prospects. As always, investors should conduct thorough research and consider multiple sources of information before making any investment decisions.
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Hedge Funds Show Significant Interest in Grab Holdings Limited as BlackRock Emerges as Key Player
September 20, 2023 – In recent developments, several hedge funds have shown a significant interest in Grab Holdings Limited (NASDAQ: GRAB), with BlackRock Inc. emerging as a key player. The global investment management corporation acquired a new position in Grab during the first quarter of this year, resulting in a valuation of $161,045,000.
Another major investor, Capital Research Global Investors, has also increased its holdings in Grab by 50.9% during the same period. At present, it owns approximately 108,322,250 shares of the company’s stock worth $379,128,000 after acquiring an additional 36,542,740 shares in the last quarter.
Contrarius Investment Management Ltd is another notable hedge fund that bought into Grab during the first quarter of this year for around $89,142,000. Additionally, Fullerton Fund Management Co Ltd experienced substantial growth in its holdings of Grab stock by 683% and now possesses about 22,247,260 shares valued at $66,964,000.
Norges Bank also exhibited confidence in Grab by acquiring a new position worth approximately $56.5 million during the fourth quarter of last year. As it stands now, institutional investors own more than half of the company’s stock.
Various research analysts have provided commentary on Grab recently. Benchmark raised their price target on Grab from $4.00 to $6.00 and issued a “buy” rating for the stock on August 24th. Evercore ISI also increased their price target to $7.00 from $5.00 with an “outperform” rating on the same day.
Citigroup followed suit by raising their price target from $4.80 to $5.20 and designating the stock as a “buy.” JPMorgan Chase & Co., meanwhile upgraded Grab from “underweight” to “neutral,” raising its price objective from $2.55 to $3.10 in a research note released on June 21st.
Barclays, on the other hand, went from an “equal weight” rating to an “overweight” rating for Grab and set the price target at $4.50. Bloomberg.com’s data indicates that, when considering all analyst opinions, Grab has an average rating of “Moderate Buy” with a consensus target price of $4.69.
On Wednesday, GRAB stock opened at $3.49. At present, the company has a market capitalization of $13.08 billion and a price-to-earnings ratio of -12.93 along with a beta value of 0.91 respectively. The firm’s 50-day simple moving average stands at $3.61, while its two-hundred day simple moving average reaches $3.27.
Over the past year, Grab had its lowest share price at $2.19 and reached its highest level at $4.03, showcasing volatility within the market during this period.
Regarding financial performance, Grab last reported its quarterly earnings results on August 23rd. During this period, the company exceeded expectations with earnings per share (EPS) of ($0.03), surpassing the consensus estimate by $0.01.
Additionally, Grab reported revenue of $567 million for the quarter compared to analyst estimates of $549.33 million, signifying a growth rate of 76.6% year-over-year.
Despite these positive results, it is worth noting that Grab still faces challenges such as a negative net margin of 55.26% and a negative return on equity amounting to 16.50%.
Moving forward, equities analysts predict that Grab Holdings Limited will post EPS of -0.11 for the current fiscal year.
In conclusion, Grab Holdings Limited has garnered substantial attention from hedge funds like BlackRock Inc., Capital Research Global Investors, Contrarius Investment Management Ltd, Fullerton Fund Management Co Ltd, and Norges Bank. Furthermore, research analysts have expressed positive sentiments towards the stock, with an average rating of “Moderate Buy” and a consensus target price of $4.69. As Grab continues to navigate the market and deliver solid financial results, investors will closely monitor its performance in the days to come.
