5 Small-Cap Stocks to Buy During Recessions

3. Tanger Factory Outlet Centers, Inc. (NYSE:SKT)

Number of Hedge Fund Holders: 19    

Market Cap as of May 25: $1.82 billion

Tanger Factory Outlet Centers, Inc. (NYSE:SKT) owns and runs open-air upscale outlet shopping centers. The firm has interests in 38 centers of this kind that are spread across 20 states in the United States. These centers host over 2,700 stores that are operated by more than 500 different brand name companies. The firm was founded in 1981 and is based in North Carolina. It employs close to 500 people. The firm also has a small presence outside the US, primarily in neighboring Canada. 

Tanger Factory Outlet Centers, Inc. (NYSE:SKT) has an impressive dividend history stretching back over 27 years. On April 11, the company declared a quarterly dividend of $0.20 per share, a 10% increase from the previous dividend of $0.1825 per share. The forward yield was 4.69%. 

At the end of the first quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $121 million in Tanger Factory Outlet Centers, Inc. (NYSE:SKT), up from 18 the preceding quarter worth $89 million.

Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Capital Growth Management is a leading shareholder in Tanger Factory Outlet Centers, Inc. (NYSE:SKT), with 1.3 million shares worth more than $23 million. 

In its Q4 2021 investor letter, Altron Capital Management, an asset management firm, highlighted a few stocks and Tanger Factory Outlet Centers, Inc. (NYSE:SKT) was one of them. Here is what Factory Outlet Centers, Inc. t the fund said:

“SKT’s business has recovered nicely from its pandemic lows, although the effect of the Omicron variant is yet to be determined. Otherwise, it appears that Tanger Factory Outlet Centers, Inc. (NYSE:SKT) still sees strong demand from consumers with foot traffic having largely returned to pre-pandemic levels. Rent spreads have finally started ticking upward, increasing 240 basis points in the third quarter. Occupancy has also rebounded to 94.3%. While most metrics are up, it seems that retailers’ willingness to expand and open new stores remains muted due to uncertainty surrounding COVID and the broader economy. In the meantime, management is making some strategic shifts to better position the company’s outlets in this type of environment. One such change in direction involves increasing the presence of food & beverage services across its outlets. We think this is a positive strategic decision that allows Tanger Factory Outlet Centers, Inc. (NYSE:SKT) more options in bringing in strong, long-term tenants to replace short-term popups and tenants lost to the pandemic. We remain bullish on SKT’s recovery and management’s ability to execute.”