5 Recent Spin-off Companies That Hedge Funds Are Piling Into

3. Crane NXT, Co. (NYSE:CXT)

Number of Hedge Fund Holders: 37

Crane NXT, Co. (NYSE:CXT), previously Crane Holdings Co., was established after Crane Company (NYSE:CR) spun off its payment and merchandising technologies business in April 2023.

According to Insider Monkey’s database, 37 hedge funds held a stake in Crane NXT, Co. (NYSE:CXT)’s stock in the third quarter at a combined stake value of $513 million.

On November 6, Crane NXT, Co. (NYSE:CXT) announced its Q3 earnings result with a  non-GAAP EPS of $1.09 and revenue of $352.9 million, which grew 5.3% year-over-year (YoY).

ClearBridge Investments mentioned Crane NXT, Co. (NYSE:CXT) in its second quarter 2023 investor letter. Here is what it said:

“We initiated a position in Crane, in the industrials sector, which then split into two separate companies, Crane and Crane NXT, Co. (NYSE:CXT), both of which we retained. Under the split, Crane will continue to be a diversified manufacturer of highly engineered industrial products for the Aerospace & Electronics, Process Flow Technologies, and Engineered Materials industries. Crane NXT designs and manufactures banknotes for over 50 central banks, including the Fed. It is also the market leader in currency, coin and credit card payment devices in self-service retail machines, vending machines and back-office cash processing equipment. We believe both Crane NXT and Crane Company were undervalued within the former consolidated Crane, based on their strong competitive advantages and incremental returns on capital.”