Mobileye (NASDAQ:MBLY) stock is trading lower today, although a major investor just disclosed that it has practically doubled its stake in the autonomous driving company.
Based on a recently submitted regulatory filing, Israel Englander’s Millennium Management owned 5.87 million shares of MBLY stock as of Jan. 4, which is equivalent to a 6.2% ownership stake. That’s up by 98.9% compared to the hedge fund’s stake of 2.95 million shares as of Sept. 30. In addition, MBLY now accounts for 0.9% of Millennium’s 13F portfolio, up from 0.6%.
Englander is no rookie fund manager. He founded Millennium in 1989. Today, it manages over $61 billion of assets. Forbes estimates Englander’s net worth to be $11.8 billion.
MBLY Stock: Millennium Management Nearly Doubles Its Stake
Millennium Management employs a diverse set of equity strategies, which include fundamental, quantitative and arbitrage. According to WhaleWisdom, the fund has an average holding period for stocks in its 13F portfolio of 15.78 quarters, or almost four years.
Based on this, investors could rationalize that Englander plans on holding MBLY stock for the long term. It is currently his 165th largest 13F position out of 4,085 total holdings.
Mobileye reported its preliminary fourth-quarter earnings on Jan. 4. However, this resulted in a 25% drop after the company warned of lower customer orders due to excess inventory during the first quarter of 2024. The timing of this announcement lines up with Englander’s buy disclosure, although it is not known whether he bought before or after the drop.
“As supply chain concerns have eased, we expect that our customers will use the vast majority of this excess inventory in the first quarter of the year,” said Mobileye.
Now, the company expects Q1 2024 revenue to be lower by approximately 50% when compared to Q1 2023 revenue.
Mobileye also raised the lower end of its 2023 guidance to $2.076 billion from $2.065 billion. However, it lowered the higher end of its guidance to $2.08 billion from $2.09 billion as well. For 2024, it expects revenue to be between $1.83 billion and $1.96 billion.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
