Penn Capital Management Company, LLC recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
PENN Capital Management Co Inc. is an investment management firm based out of Philadelphia, Pennsylvania. The company was originally established in 1987 by founder Richard A. Hocker, who is still with the company today acting as its CEO, CIO, and Chairman. PENN Capital Management Co has grown from its inception to now operate with 63 total employees of which 25 are investment professionals and an additional location in Stuart, Florida. The company conducts its research internally, utilizing a fundamental methodology to make its investment decisions. The company invests in the public equity, alternative, and fixed income markets within the United States, allocating its assets in the stocks of companies from micro to large caps with a bottom up stock picking approach. PENN Capital Management Co invests most heavily in the health care sector, which alone makes up over a quarter of the firm’s total asset allocations, and also invests in the consumer discretionary, finance, information technology, and industrials sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company holds its allocations an average of 6.31 quarters although PENN Capital Management Co only holds its top 10 allocations an average of 2.5 quarters. PENN Capital Management Co oversees over $6.4 billion in total assets under management spread across over 2,400 accounts, all of which are discretionary accounts except for 22 which make up $320 million of its total managed assets. Although the company’s total number of accounts has been decreasing in recent years, once having been as high as over 6,000 five years ago, the firm’s total assets under management has been increasing, growing significantly from $2.8 billion back in 2010 to well over twice that amount today. PENN Capital Management Co mainly caters to individuals, which alone makes up two thirds of its entire client base. The company currently offers its US Equity and US High Yield Credit strategies.
As of the latest 13F report, the guru’s equity portfolio contained 173 stocks valued at a total of $889.00Mil. The top holdings were WFRD(2.92%), GTLS(2.00%), and NXST(1.74%).
According to GuruFocus data, these were Penn Capital Management Company, LLC’s top five trades of the quarter.
Steelcase Inc
Penn Capital Management Company, LLC reduced their investment in NYSE:SCS by 1,141,601 shares. The trade had a 1.33% impact on the equity portfolio. During the quarter, the stock traded for an average price of $10.68.
On 12/09/2022, Steelcase Inc traded for a price of $7.01 per share and a market cap of $790.05Mil. The stock has returned -36.80% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Steelcase Inc has a price-earnings ratio of 53.88, a price-book ratio of 0.99, a EV-to-Ebitda ratio of 11.38 and a price-sales ratio of 0.26.
The price-to-GF Value ratio is 0.52, earning the stock a GF Value rank of 8.
Perrigo Co PLC
The guru established a new position worth 243,164 shares in NYSE:PRGO, giving the stock a 0.98% weight in the equity portfolio. Shares traded for an average price of $40.18 during the quarter.
On 12/09/2022, Perrigo Co PLC traded for a price of $31.88 per share and a market cap of $4.30Bil. The stock has returned -10.10% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Perrigo Co PLC has a price-book ratio of 0.93, a EV-to-Ebitda ratio of 23.04 and a price-sales ratio of 0.98.
The price-to-GF Value ratio is 0.65, earning the stock a GF Value rank of 10.
Ballys Corp
The guru sold out of their 435,550-share investment in NYSE:BALY. Previously, the stock had a 0.93% weight in the equity portfolio. Shares traded for an average price of $22.9 during the quarter.
On 12/09/2022, Ballys Corp traded for a price of $23.055 per share and a market cap of $1.09Bil. The stock has returned -40.63% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Ballys Corp has a price-book ratio of 1.00, a EV-to-Ebitda ratio of 12.23 and a price-sales ratio of 0.66.
The price-to-GF Value ratio is 0.44, earning the stock a GF Value rank of 4.
Compass Minerals International Inc
The guru established a new position worth 189,717 shares in NYSE:CMP, giving the stock a 0.82% weight in the equity portfolio. Shares traded for an average price of $38.13 during the quarter.
On 12/09/2022, Compass Minerals International Inc traded for a price of $44.125 per share and a market cap of $1.81Bil. The stock has returned -13.78% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Compass Minerals International Inc has a price-book ratio of 5.87, a EV-to-Ebitda ratio of 19.51 and a price-sales ratio of 1.21.
The price-to-GF Value ratio is 0.62, earning the stock a GF Value rank of 8.
GXO Logistics Inc
During the quarter, Penn Capital Management Company, LLC bought 196,339 shares of NYSE:GXO for a total holding of 226,072. The trade had a 0.77% impact on the equity portfolio. During the quarter, the stock traded for an average price of $44.17.
On 12/09/2022, GXO Logistics Inc traded for a price of $43.87 per share and a market cap of $5.20Bil. The stock has returned -52.79% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, GXO Logistics Inc has a price-earnings ratio of 24.76, a price-book ratio of 2.02, a EV-to-Ebitda ratio of 14.37 and a price-sales ratio of 0.58.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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