- Stocks Settle Mixed on Tech Weakness and Inflation Pressures
May 12, 2026
The S&P 500 Index ($SPX) (SPY) on Tuesday closed down -0.16%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.11%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.87%. June E-mini S&P futures (ESM26) fell -0.16%, and June E-mini Nasdaq futures (NQM26) fell -0.90%.
Stock indexes settled mixed on Tuesday. The broader market was under pressure amid weakness in technology stocks, following Monday’s rally that pushed the S&P 500 and Nasdaq 100 to new record highs. The ongoing stalemate in the Middle East between the US and Iran is keeping the Strait of Hormuz closed, weighing on market sentiment, and pushing crude oil prices and bond yields higher. The 10-year T-note yield rose +5 bp to 4.46%.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock indexes added to their losses on Tuesday amid signs of accelerating inflation after the US Apr CPI rose 3.8% y/y, stronger than the 3.7% y/y expected and the largest increase in almost 3 years. Also, Apr core CPI rose +2.8% y/y, stronger than expectations of +2.7% y/y and the largest increase in six months.
However, stock indexes bounced off their lows, and the Dow Jones Industrial Average moved into positive territory on the strength of health insurance stocks.
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee were bearish for stocks and bonds, as he said the worst part of today's April CPI report is services inflation and that "the Fed has got to be thinking about how do we break the chain of escalating inflation."
In the latest developments in the Middle East, President Trump called Iran's response to his peace proposal a "piece of garbage" and said that the current ceasefire was on "life support." Mr. Trump said, "Iran will make a deal or be decimated."
WTI crude oil prices (CLM26) rose more than 4% on Tuesday, as President Trump cast doubt over the ceasefire with Iran, saying the truce was on “massive life support,” prolonging the closure of the Strait of Hormuz. The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 4% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of Tuesday, 83% of the 454 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -1.48%. China's Shanghai Composite fell from a 10-year high and closed down -0.25%. Japan's Nikkei Stock Average closed up +0.52%.
Interest Rates
June 10-year T-notes (ZNM6) on Tuesday closed down -12 ticks. The 10-year T-note yield rose +4.9 bp to 4.462%. Jun T-notes matched last Monday’s 6-week low on Tuesday, and the 10-year T-note yield rose to a 6-week high of 4.465%. T-notes were under pressure on Tuesday amid a +4% surge in WTI crude oil prices, which boosted inflation expectations. Also, Tuesday’s stronger-than-expected US April CPI reports signal accelerating inflation, a bearish factor for T-notes. In addition, T-notes weakened on comments from Chicago Fed President Austan Goolsbee, who said the US has an inflation problem.
T-note price fell further on Tuesday afternoon amid weak demand for the Treasury’s $42 billion auction of 10-year T-notes that had a bid-to-cover ratio of 2.40, below the 10-auction average of 2.49.
European government bond yields moved higher on Tuesday. The 10-year German Bund yield rose to a 1.5-week high of 3.105% and finished up +6.1 bp to 3.101%. The 10-year UK gilt yield surged to a 17-year high of 5.135% and finished up +10.3 bp to 5.101%.
The German May ZEW survey expectation of economic growth unexpectedly rose +7.0 to -10.2, stronger than expectations of a decline to -19.5.
ECB Governing Council member Christodoulos Patsalides said, "As things stand, inflation risks are worsening," which points to an ECB interest rate hike in June.
Swaps are discounting an 87% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers were on the defensive Tuesday, giving back some of Monday’s sharp gains as the AI infrastructure rally cooled. Qualcomm (QCOM) closed down more than -11% to lead losers in the S&P 500 and Nasdaq 100, and Intel (INTC) closed down more than -6%. Also, Sandisk (SNDK) and Western Digital (WDC) closed down more than -5%, and Micron Technology (MU), Marvell Technology (MRVL), and NXP Semiconductors NV (NXPI) closed down more than -3%. In addition, Applied Materials (AMAT), Advanced Micro Devices (AMD), ASML Holding NV (ASML), Seagate Technology Holdings Plc (STX), Lam Research (LRCX), ARM Holdings Plc (ARM), and Broadcom (AVGO) closed down more than -2%.
Software stocks retreated on Tuesday, weighing on the overall market. Salesforce (CRM) closed down more than -3% to lead losers in the Dow Jones Industrials. Also, Oracle (ORCL) closed down more than -3%, and ServiceNow (NOW), Adobe Systems (ADBE), and Atlassian Corp (TEAM) closed down more than -2%. In addition, Microsoft (MSFT), Intuit (INTU), Datadog (DDOG), and Workday (WDAY) closed down more than -1%.
Defensive health insurance stocks rallied on Tuesday, providing support to the overall market. Humana (HUM) closed up more than +7%, and Centene (CNC) closed up more than +5%. Also, UnitedHealth Group (UNH) closed up more than +3% to lead gainers in the Dow Jones Industrials, and Elevance Health (ELV), United Health Services (UHS), CVS Health Corp (CVS), the Cigna Group (CI), and Molina Healthcare (MOH) closed up more than +3%.
Power Solutions International (PSIX) closed down more than -38% after reporting Q1 revenue of $128.6 million, well below the consensus of $161 million.
Hims & Hers Health (HIMS) closed down more than -13% after reporting Q1 revenue of $608.1 million, weaker than the consensus of $617.5 million, and forecasting full-year adjusted Ebitda of $275 million to $350 million, the midpoint below the consensus of $319.3 million.
AST SpaceMobile (ASTS) closed down more than -11% after reporting a Q1 net loss of -$191.0 million, a wider loss than expectations of -$76.3 million.
Gitlab (GTLB) closed down by more than -9% after announcing plans to cut jobs and make operational changes, moves Raymond James said will be challenging.
Webtoon Entertainment (WBTN) closed down more than -8% after forecasting Q2 revenue of $332 million to $342 million, well below the consensus of $359.9 million.
West Pharmaceutical Services (WST) closed down more than -2% after saying it has experienced a material cybersecurity attack that has disrupted operations globally.
PACS Group (PACS) closed up more than +29% after reporting Q1 revenue of $1.42 billion, stronger than the consensus of $1.36 billion, and raising its full-year Ebitda forecast to $605 million-$625 million from a previous forecast of $555 million-$575 million, well above the consensus of $567 million.
Wendy’s (WEN) closed up more than +17% after the Financial Times reported that Trian Fund Management is seeking investor backing for a bid to take the company private.
Venture Global (VG) closed up more than +14% after reporting Q1 adjusted net income of $488.0 million, well above the consensus of $337.2 million.
Zebra Technologies (ZBRA) closed up more than +11% to lead gainers in the S&P 500 after reporting Q1 adjusted EPS of $4.75, stronger than the consensus of $4.25, and raising its full-year adjusted EPS forecast to $18.30 to $18.70 from a previous forecast of $17.70 to $18.30.
Qnity Electronics (Q) closed up more than +9% after reporting Q1 net sales of $1.42 billion, above the consensus of $1.27 billion.
Steris Plc (STE) closed up more than +4% after forecasting 202y adjusted EPS from continuing operations of $11.10 to $11.30, above the consensus of $11.08.
Earnings Reports(5/13/2026)
Amdocs Ltd (DOX), Birkenstock Holding Plc (BIRK), Cisco Systems Inc (CSCO), Doximity Inc (DOCS), Dynatrace Inc (DT). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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- Is The Cigna Group (CI) One of the Best Dividend Stocks to Buy for Steady Growth?
May 12, 2026
With a 5-year average dividend growth rate of 42.4%, The Cigna Group (NYSE:CI) is included among the 14 Best Dividend Stocks to Buy for Steady Growth.Is The Cigna Group (CI) One of the Best Dividend Stocks to Buy for Steady Growth?
On May 5, Bernstein analyst Lance Wilkes raised the firm’s price recommendation on The Cigna Group (NYSE:CI) to $371 from $358. It reiterated an Outperform rating following the company’s quarterly results. The firm said it is updating its earnings model, with EPS estimates remaining largely unchanged for 2026 and moving modestly higher for the 2027 through 2030 period.
During Cigna Group’s Q1 2026 earnings call, CEO and Chair David Cordani said the company delivered strong first-quarter results. Total revenue came in at $68.5 billion, while adjusted earnings per share reached $7.79. Cordani also said Cigna raised its full-year 2026 adjusted EPS guidance to at least $30.35.
He pointed to the company’s efforts to simplify healthcare processes in the U.S. According to Cordani, Cigna removed hundreds of tests, procedures, and services from the prior authorization process. Those changes reduced the volume of medical prior authorizations by around 15%. Cordani also highlighted the launch of the company’s rebate-free pharmacy service model as part of its broader transformation efforts. He said the new offering is called Signature.
The Cigna Group (NYSE:CI) is a global health company with two operating segments: Evernorth Health Services and Cigna Healthcare.
While we acknowledge the potential of CI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Inflation-Hedge Stocks to Buy for 2026 and 10 Best Stocks to Buy to Beat the S&P 500
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- Kayne Anderson Energy Infrastructure Fund Announces Appointment of Michael J. Hennigan as New Independent Director
May 12, 2026
Kayne Anderson Energy Infrastructure Fund, Inc.
HOUSTON, May 12, 2026 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company” or “KYN”) announced today the appointment of Michael J. Hennigan as an independent director of the Company, effective immediately. Following the retirements of William R. Cordes and Barry R. Pearl earlier this year, the appointment of Mr. Hennigan brings the Company’s Board to six members, five of whom are independent.
Michael J. Hennigan is a highly accomplished energy executive, with several decades of leadership experience in the refining and midstream sectors. Mr. Hennigan most recently served as Executive Chairman of Marathon Petroleum Corporation (NYSE: MPC) and MPLX LP (NYSE: MPLX) until his retirement in December 2025, having previously served as Chief Executive Officer of MPC and Chairman, President and Chief Executive Officer of MPLX.
Mr. Hennigan joined MPLX in 2017 and has held senior leadership roles spanning refining, logistics and midstream operations. Prior to joining MPLX, Mr. Hennigan was President of Crude, NGL and Refined Products of the general partner of Energy Transfer Partners, L.P. Mr. Hennigan began his career at Sunoco, Inc., where he spent more than three decades in roles of increasing responsibility, ultimately serving as President and Chief Executive Officer of Sunoco Logistics.
Mr. Hennigan currently serves on the boards of The Cigna Group (NYSE: CI) and Nutrien Ltd. (NYSE: NTR). He holds a Bachelor of Science degree in chemical engineering from Drexel University in Philadelphia.
“We are very pleased to welcome Mike to KYN’s Board of Directors,” said Jim Baker, Chairman, President, and CEO. “Mike brings a wealth of knowledge from his long career in the energy industry and extensive experience in the midstream sector. His perspective leading one of the largest and most complex energy platforms in North America will be an invaluable resource to our Board. As the energy and power infrastructure landscape continues to evolve, we believe Mike’s insights will further enhance our ability to capitalize on opportunities and deliver long-term value for KYN’s stockholders,” concluded Mr. Baker.
Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.
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The Company pays cash distributions to common stockholders at a rate that may be adjusted from time to time. Distribution amounts are not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.
Contact investor relations at 877-657-3863 or cef@kayneanderson.com.
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- The Cigna Group (CI) Stock Up 3.6% and Still Undervalued -- GF Score: 72/100
May 12, 2026 · gurufocus.com
On May 12, 2026, The Cigna Group (CI) shares rose 3.6% to a current price of $298.49. The stock has experienced a 52-week range, with a high of $338.89 and a lo
- Why Cigna (CI) is a Top Value Stock for the Long-Term
May 12, 2026 · zacks.com
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
- Chris Davis Significantly Reduces Stake in Applied Materials Inc, Impacting Portfolio by -3.47%
May 7, 2026
This article first appeared on GuruFocus.
Insight into Chris Davis (Trades, Portfolio)'s Strategic Moves in Q1 2026
Warning! GuruFocus has detected 4 Warning Sign with AIG. Is COF fairly valued? Test your thesis with our free DCF calculator.
Chris Davis (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2026, providing insights into his investment moves during this period. Davis Advisors manages more than $60 billion across several different asset classes. Chris Davis (Trades, Portfolio) is the portfolio manager of Davis Financial Fund. Davis purchases durable, well-managed businesses that can be purchased at value prices and held for the long term (average holding period of a stock in the Davis New York Venture Fund is four to seven years). Davis focuses primarily on financial services companies. He looks to buy companies when they are out of favor.
Key Position Increases
Chris Davis (Trades, Portfolio) also increased stakes in a total of 64 stocks, among them:
The most notable increase was The Cigna Group (NYSE:CI), with an additional 1,481,077 shares, bringing the total to 2,233,929 shares. This adjustment represents a significant 196.73% increase in share count, a 1.82% impact on the current portfolio, with a total value of $595,905,880. The second largest increase was JBS NV (NYSE:JBS), with an additional 14,389,919 shares, bringing the total to 26,244,660. This adjustment represents a significant 121.39% increase in share count, with a total value of $471,354,100.
Summary of Sold Out
Chris Davis (Trades, Portfolio) completely exited 2 of the holdings in the first quarter of 2026, as detailed below:
UDR Inc (NYSE:UDR): Chris Davis (Trades, Portfolio) sold all 113,280 shares, resulting in a -0.02% impact on the portfolio. Netstreit Corp (NYSE:NTST): Chris Davis (Trades, Portfolio) liquidated all 189,600 shares, causing a -0.02% impact on the portfolio.
Key Position Reduces
Chris Davis (Trades, Portfolio) also reduced positions in 36 stocks. The most significant changes include:
Reduced Applied Materials Inc (NASDAQ:AMAT) by 3,004,196 shares, resulting in a -71.51% decrease in shares and a -3.47% impact on the portfolio. The stock traded at an average price of $336.38 during the quarter and has returned 27.72% over the past 3 months and 60.29% year-to-date. Reduced Darling Ingredients Inc (NYSE:DAR) by 2,654,401 shares, resulting in a -93.39% reduction in shares and a -0.43% impact on the portfolio. The stock traded at an average price of $49.25 during the quarter and has returned 29.00% over the past 3 months and 72.72% year-to-date.
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Portfolio Overview
At the first quarter of 2026, Chris Davis (Trades, Portfolio)'s portfolio included 112 stocks, with top holdings including 7.15% in Capital One Financial Corp (NYSE:COF), 5.99% in Coterra Energy Inc (NYSE:CTRA), 5.31% in U.S. Bancorp (NYSE:USB), 4.85% in Viatris Inc (NASDAQ:VTRS), and 4.52% in Meta Platforms Inc (NASDAQ:META).
The holdings are mainly concentrated in 10 of all the 11 industries: Financial Services, Healthcare, Communication Services, Consumer Cyclical, Energy, Technology, Consumer Defensive, Basic Materials, Industrials, and Real Estate.
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- How CVS Health's Transformation Is Facing A Hard Valuation Floor
May 7, 2026
The most significant insight currently obscured by CVS Health's (CVS) headline revenue growth is a high-stakes transition: the company is attempting to use a temporary surge in insurance profitability to outrun the structural margin pressures facing its pharmacy benefit management (PBM) business.
Pixabay
The Aetna Buffer
The Health Care Benefits segment, which houses Aetna, is currently functioning as the company's primary engine for earnings growth. In Q1 2026, this segment saw adjusted operating income rise 52.6 percent year-over-year. The core driver is the Medical Loss Ratio, which improved to 84.6 percent from 87.3 percent. The matured integration of Oak Street Health and Signify Health, representing an $18.6 billion pivot toward value-based care, is now delivering the promised synergies. By successfully funneling Aetna members into its own primary care and home health assets, CVS has effectively internalized costs that were previously paid to third-party providers, directly contributing to the Q1 margin beat. However, this success in insurance is being used to offset a measurable decline in the Health Services segment, where operating income fell 7.1 percent in the same period. See how CVS Health's growth and margins compare to its peers, including UnitedHealth Group (UNH) and Cigna (CI).
The Regulatory Scrutiny
CVS is navigating significant legal challenges across its two most visible businesses. The Pharmacy Benefit Management (PBM) segment continues to face intense scrutiny over its core profit mechanisms. In late March 2026, CVS Caremark and the Federal Trade Commission (FTC) jointly moved to withdraw the matter from adjudicative proceedings to consider a proposed consent agreement. Final terms remain under commission review and have not been publicly disclosed, but the move signals a potential settlement path that may be modeled on recent industry precedents. If the final agreement follows those precedents, it could target rebate-linked compensation and increase the risk of structural margin compression if the PBM is pushed toward a flatter fee-based compensation model. Simultaneously, the retail pharmacy division is defending against a December 2024 Department of Justice (DOJ) civil complaint alleging violations of the Controlled Substances Act linked to corporate staffing and dispensing practices. CVS is not alone in navigating these massive revenue hurdles. Explore this parallel dynamic in our analysis: Can Pfizer Stock Outrun A $17B Revenue Void?
Valuation And Risk Asymmetry
CVS stock currently trades at $87, representing 12 times its forward expected earnings of $7.40. This valuation warrants scrutiny when compared to the stock's five-year average forward price-to-earnings multiple of 10x. (See CVS Health's valuation metrics). Investors are paying a premium over historical norms for a business navigating a complex regulatory environment. This creates a state of negative asymmetry. Although the company's management raised its guidance, the potential for further upside may be capped by the cautious macroeconomic outlook and elevated cost trends. Conversely, the downside is substantial. A structural impairment of the PBM segment would likely trigger a multiple contraction back toward the 10x historical average, implying a potential share price decline toward the $74 range. While CVS faces multiple compression risks from regulatory overhangs, other equities are aggressively expanding their valuations through alternative capital strategies. Read: How MSTR Stock Rises To $370
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The Bottom Line
The underlying reality is that CVS is a company executing a necessary transformation. The current 12x multiple assumes the Aetna margin expansion is durable enough to replace lost PBM income. However, with the PBM segment facing material regulatory shifts, the stock's current premium presents a complex risk-reward profile, where apparent value may be constrained by ongoing margin erosion within the PBM and retail segments. The perceived discount relative to the broader market reflects a contested business model rather than a simple mispricing. Navigating these types of structural turnarounds requires careful risk management. This objective is central to the Trefis High Quality (HQ) Portfolio strategy, which avoids contested business models in favor of identifying companies with high-integrity cash flows. The HQ strategy has outperformed its market benchmark since inception, delivering returns of over 105 percent.
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- Cigna Group's (NYSE:CI) Solid Earnings Are Supported By Other Strong Factors
May 7, 2026
Investors were underwhelmed by the solid earnings posted by The Cigna Group (NYSE:CI) recently. Our analysis says that investors should be optimistic, as the strong profit is built on solid foundations.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.NYSE:CI Earnings and Revenue History May 7th 2026
How Do Unusual Items Influence Profit?
For anyone who wants to understand Cigna Group's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$1.8b due to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Cigna Group to produce a higher profit next year, all else being equal.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
Our Take On Cigna Group's Profit Performance
Because unusual items detracted from Cigna Group's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Cigna Group's statutory profit actually understates its earnings potential! And the EPS is up 6.5% annually, over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Every company has risks, and we've spotted 1 warning sign for Cigna Group you should know about.
Today we've zoomed in on a single data point to better understand the nature of Cigna Group's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- Why Cigna (CI) is a Top Momentum Stock for the Long-Term
May 7, 2026 · zacks.com
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
- Tweedy Browne's Strategic Moves: Ionis Pharmaceuticals Inc. Sees Significant Reduction
May 6, 2026
This article first appeared on GuruFocus.
Analyzing the Impact of Tweedy Browne (Trades, Portfolio)'s Recent 13F Filing
Warning! GuruFocus has detected 5 Warning Signs with CNH. Is CNH fairly valued? Test your thesis with our free DCF calculator.
Tweedy Browne (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2026, providing insights into its investment moves during this period. Tweedy Browne (Trades, Portfolio)'s operations are managed by its Management Committee, which consists of Jay Hill, Thomas H. Shrager, John D. Spears, and Robert Q. Wyckoff, Jr., who have been with the firm for tenures ranging from 18 to 47 years. Tweedy Browne (Trades, Portfolio) is owned by its Managing Directors and certain other employees and by a wholly-owned subsidiary of Affiliated Managers Group, Inc. ("AMG"), which owns a majority interest in the firm. AMG provides the Firm with operational autonomy and a seamless mechanism for ownership transfer and succession. Benjamin Graham, through his investment firm Graham-Newman Corp., was one of the firm's primary brokerage clients in the 1930s, 1940s, and 1950s. The Tweedy Browne (Trades, Portfolio) Value Fund seeks long-term growth of capital by investing primarily in U.S. and foreign equity securities that the Adviser believes are undervalued. Investments are focused in developed markets. The fund seeks to reduce currency risk by hedging its perceived foreign currency exposure back into the U.S. dollar where practicable.
Summary of New Buy
Tweedy Browne (Trades, Portfolio) added a total of 6 stocks, among them:
The most significant addition was Jazz Pharmaceuticals PLC (NASDAQ:JAZZ), with 60,209 shares, accounting for 0.9% of the portfolio and a total value of $11.38 million. The second largest addition to the portfolio was Asbury Automotive Group Inc (NYSE:ABG), consisting of 7,253 shares, representing approximately 0.11% of the portfolio, with a total value of $1.42 million. The third largest addition was The Cigna Group (NYSE:CI), with 5,375 shares, accounting for 0.11% of the portfolio and a total value of $1.43 million.
Key Position Increases
Tweedy Browne (Trades, Portfolio) also increased stakes in a total of 46 stocks, among them:
The most notable increase was KT Corp (NYSE:KT), with an additional 79,772 shares, bringing the total to 167,181 shares. This adjustment represents a significant 91.26% increase in share count, a 0.13% impact on the current portfolio, with a total value of $3.59 million. The second largest increase was StoneX Group Inc (NASDAQ:SNEX), with an additional 20,021 shares, bringing the total to 54,035. This adjustment represents a significant 58.86% increase in share count, with a total value of $4.36 million.
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Summary of Sold Out
Tweedy Browne (Trades, Portfolio) completely exited 9 of the holdings in the first quarter of 2026, as detailed below:
General Motors Co (NYSE:GM): Tweedy Browne (Trades, Portfolio) sold all 25,695 shares, resulting in a -0.17% impact on the portfolio. Atmus Filtration Technologies Inc (NYSE:ATMU): Tweedy Browne (Trades, Portfolio) liquidated all 40,550 shares, causing a -0.17% impact on the portfolio.
Key Position Reduces
Tweedy Browne (Trades, Portfolio) also reduced positions in 29 stocks. The most significant changes include:
Reduced Ionis Pharmaceuticals Inc (NASDAQ:IONS) by 189,305 shares, resulting in a -7.68% decrease in shares and a -1.21% impact on the portfolio. The stock traded at an average price of $78.92 during the quarter and has returned -11.16% over the past 3 months and -2.86% year-to-date. Reduced FedEx Corp (NYSE:FDX) by 38,712 shares, resulting in a -34.34% reduction in shares and a -0.9% impact on the portfolio. The stock traded at an average price of $347.13 during the quarter and has returned 2.57% over the past 3 months and 31.11% year-to-date.
Portfolio Overview
At the first quarter of 2026, Tweedy Browne (Trades, Portfolio)'s portfolio included 93 stocks, with top holdings including 17.61% in CNH Industrial NV (NYSE:CNH), 13.57% in Ionis Pharmaceuticals Inc (NASDAQ:IONS), 9.07% in Coca-Cola Femsa SAB de CV (NYSE:KOF), 8.22% in Berkshire Hathaway Inc (NYSE:BRK.A), and 4.53% in Alphabet Inc (NASDAQ:GOOGL).
The holdings are mainly concentrated in 9 of all the 11 industries: Healthcare, Industrials, Financial Services, Consumer Defensive, Consumer Cyclical, Communication Services, Energy, Technology, and Basic Materials.
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