SPO Advisory Corp, managed by John H. Scully, has disclosed raising its stake in Equinix Inc (NASDAQ:EQIX) to a total of around 5.21 million shares. According to the filing with the Securities and Exchange Commission, SPO Advisory acquired 325,000 shares of Equinix for a total consideration worth $58.56 million.
Shares of Equinix Inc (NASDAQ:EQIX) have been declining recently, losing around 5% over the past month. However, this decline should be watched more as an incentive to buy the stock, since the average target price for Equinix is set at around $225.6 per share, with the mean recommendation ‘Buy.’ Currently Equinix trails a price-to-earnings ratio of almost 100, way above the average for the Internet Software and Services industry average P/E of around 66.
Equinix Inc (NASDAQ:EQIX) has also showed a solid financial performance during the past couple of years. For 2013, the company posted a revenue of over $2.15 billion, which represents a 14% increase over the year. Equinix also reported a net income of $94.7 million, or $1.89 per diluted share. Moreover, for the current year, Equinix forecasts its revenue to went up by an annual 11% to $2.38 billion, and EBITDA of more than $1.1 billion.
While SPO Advisory holds a significant stake in Equinix Inc (NASDAQ:EQIX), other hedge funds reported major positions in the company. Barry Rosenstein‘s Jana Partners, in its latest 13F, revealed holding 3.01 million shares of the company, up by around 1.0 million shares over the quarter. John Paulson‘s Paulson & Co, also increased its stake by 888,200 shares, and currently holds 2.09 million shares.
SPO Advisory Corp is a value investing fund, with a big chunk of its equity portfolio held in Services stocks. Last month, the fund revealed reducing its stake in Calpine Corporation (NYSE:CPN), currently holding 12.12 million shares, versus 30.31 million shares held previously. The most valuable holding from SPO’s equity portfolio is represented by Charles Schwab Corp (NYSE:SCHW), in which the fund holds 46.35 million shares, worth $1.21 billion, followed by Liberty Global plc – Class C Ordinary Shares (NASDAQ:LBTYK) with 12.58 million shares, worth $1.01 billion.
Disclosure: none
Recommended Reading:
Spo Advisory Sells Some More Petroquest Energy Inc (PQ) Shares
Aaron Cowen’s Suvretta Capital Management Loves These Stocks
5 Stocks Hedge Funds Are Absolutely Crazy About