On October 6, 2023, renowned investor Bill Ackman (Trades, Portfolio) increased his stake in Howard Hughes Holdings Inc (HHH, Financial), a leading real estate company in the USA. This article provides an in-depth analysis of the transaction, Ackman's investment philosophy, and the financial health of Howard Hughes Holdings Inc.
Details of the Transaction
The transaction saw Ackman add 117,773 shares to his holdings at a trade price of $69.74 per share. This move increased his total shares in Howard Hughes Holdings Inc to 17,007,081, representing a 0.70% change. The transaction had a 0.08% impact on his portfolio and increased his position in the company to 10.96%. Ackman now holds 33.95% of the company's shares.
Profile of Bill Ackman (Trades, Portfolio)
Bill Ackman (Trades, Portfolio), the co-investment manager for hedge-fund group Gotham Partners LP, established Pershing Square in November 2003. Ackman is an activist investor who purchases the common stocks of public companies and advocates for changes to realize their values. He buys stocks trading at a discount and sells when the companies reach their appraised value. His portfolio, valued at $10.82 billion, consists of eight stocks, with the top holdings being 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). His top sectors are Consumer Cyclical and Communication Services. 
Overview of Howard Hughes Holdings Inc
Howard Hughes Holdings Inc is a prominent real estate company that owns, manages, and develops commercial, residential, and mixed-use real estate throughout the USA. The company's portfolio is strategically positioned to meet and accelerate development based on market demand, making it one of the strongest real estate platforms in the country. The company operates through several segments, including Master Planned Communities (MPC), Operating Assets, Seaport, Strategic Developments, and Corporate revenues. As of October 7, 2023, the company's market capitalization stands at $3.44 billion, with a stock price of $68.67. 
Stock Performance and Valuation
Howard Hughes Holdings Inc has a PE percentage of 28.92, indicating its profitability. The company's stock is modestly undervalued according to the GF-Score, with a GF Value of 82.37 and a Price to GF Value of 0.83. Since its IPO in 2010, the stock has gained 121.52%, despite a year-to-date decline of 9.83%. The company's GF Score is 74/100, suggesting a likely average performance in the future.
Financial Health and Performance of Howard Hughes Holdings Inc
The company's financial strength is reflected in its balance sheet rank of 3/10 and an interest coverage of 2.19. Its profitability rank stands at 6/10, with a return on equity (ROE) of 3.41% and a return on assets (ROA) of 1.24%. The company has seen a 2.00% growth in gross margin and a 1.90% growth in revenue over the past three years. Its EBITDA and earnings have grown by 9.30% and 28.80%, respectively, over the same period.
Momentum and Predictability of Howard Hughes Holdings Inc
The company's momentum is reflected in its RSI 5 Day of 11.97, RSI 9 Day of 19.06, and RSI 14 Day of 25.40. Its Momentum Index 6 - 1 Month stands at 4.03, and the 12 - 1 Month index is 36.74. However, the company's predictability rank is not available.
Other Gurus' Involvement in Howard Hughes Holdings Inc
Pershing Square Capital Management, L.P., holds the most shares in Howard Hughes Holdings Inc. Other gurus who also hold the traded stock include Barrow, Hanley, Mewhinney & Strauss, Donald Smith & Co, and Joel Greenblatt (Trades, Portfolio).
In conclusion, Bill Ackman (Trades, Portfolio)'s recent acquisition of shares in Howard Hughes Holdings Inc is a strategic move that aligns with his investment philosophy. This transaction is likely to have a significant impact on his portfolio and the stock's performance in the future.
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.
