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In the last quarter of 2019, Commerzbank loaded up on one stock that has rocketed in January.
The German banking giant increased its holdings in Beyond Meat stock (ticker: BYND) by more than six times in the quarter, right before the maker of plant-based burgers and other foods surged in January. Commerzbank also lifted its investment in Microsoft stock (MSFT), and significantly reduced holdings in Tesla (TSLA) and General Electric stock (GE). The bank disclosed the stock trades in a form it filed with the Securities and Exchange Commission.
Commerzbank declined to comment on its investment changes.
Commerzbank bought 207,355 additional shares of Beyond Meat in the fourth quarter, ending the year with 247,737 shares. Beyond Meat stock tripled in value last year from a $25 share price set at its May initial public offering; at one point in 2019, though, shares were trading at nearly 10 times the IPO price. Commerzbank had been buying Beyond Meat stock in the third quarter, as well.
The new year has seen Beyond Meat stock surge 58% through Friday’s close compared with the 2.0% rise in the S&P 500 index. Part of the rise in the shares, even in the face of more competition, has been an expanded trial of its burgers at McDonald’s (MCD) outlets in Canada.
Microsoft stock also went on a bull run in 2019, surging 55.3%. Enthusiasm for the company’s cloud-computing and software subscriptions lifted the shares. At least one analyst sees Microsoft stock continuing its rise. Microsoft stock has gained 4.7% so far this year.
Commerzbank bought 707,439 more Microsoft shares in the last three months of 2019, lifting its investment to 3 million shares.
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The bank slashed its stake in Tesla by a third, selling 266,597 shares of the maker of electric vehicles, ending 2019 with 508,408 shares.
Tesla stock lagged behind the S&P 500 in 2019, managing a gain of 25.7% compared with the 28.9% rise in the index. The tables have turned in the new year, however. Tesla stock has surged 35.0% year to date, and at least one observer sees shares rising even more.
GE stock surged 53.3% in 2019, and the outperformance came as market sentiment on the shares improved. A high-profile allegation of accounting fraud at the company also evaporated. GE stock is up 4.9% in January, and positive assessments from Wall Street continue.
Commerzbank cut more than a fourth of its holdings in GE stock by selling 5.2 million shares in the fourth quarter to end the year with 14.1 million shares.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.