In this article, we discuss the top 5 stocks to buy according to James Mitarotonda’s Barington Capital. If you want a detailed analysis of these stocks, go directly to 10 Stocks to Buy According to James Mitarotonda’s Barington Capital.
5. Standex International Corporation (NYSE:SXI)
Mitarotonda’s Stake Value: $11,404,000
Percentage of Mitarotonda’s 13F Portfolio: 10.63%
Number of Hedge Fund Holders: 10
Standex International Corporation (NYSE:SXI) is a multinational American manufacturer offering food service equipment, electronics, hydraulics, and engineering technologies. Some of the well-known subsidiaries under the New Hampshire-based corporation are Bakers Pride and Standex Electronics.
Mitarotonda’s Barington Capital owns 120,151 shares in Standex International Corporation (NYSE:SXI), valued at $11.4 million, and representing 10.63% of Mitarotonda’s 13F portfolio.
Cove Street Capital, managed by Jeffrey Bronchick, is the key stakeholder in Standex International Corporation (NYSE:SXI), with stakes worth over $13 million. Out of the 873 hedge funds tracked by Insider Monkey, 10 held stakes in Standex International Corporation (NYSE:SXI), equaling $42.5 million at the end of the second quarter of 2021. When compared to the previous quarter, the hedge funds in Q2 were up from 7 in Q1, valued at $30.1 million.
On August 16, analyst Christopher Howe from Barrington raised the price target on Standex International Corporation (NYSE:SXI) to $133, keeping an Outperform rating on the stock. The analyst stated that the markets would soon realize that Standex International Corporation (NYSE:SXI) is undervalued, and the price will appreciate in the future.
4. Chico’s FAS, Inc. (NYSE:CHS)
Mitarotonda’s Stake Value: $12,084,000
Percentage of Mitarotonda’s 13F Portfolio: 11.27%
Number of Hedge Fund Holders: 22
The fourth stock on our list of the top 5 stocks to buy according to James Mitarotonda’s Barington Capital is Chico’s FAS, Inc. (NYSE:CHS), which is a Florida-based retailer of women’s clothing and accessories. The four stores owned and operated by Chico’s FAS, Inc. (NYSE:CHS) include Chico’s Store, White House Black Market, Soma, and TellTale. The company has brick and mortar stores across the United States and Canada, and is serving customers online, benefitting from the e-commerce boom. Chico’s FAS, Inc. (NYSE:CHS) is traded as a S&P 600 component.
Mitarotonda’s Barington Capital owns 1.83 million shares worth $12.08 million in Chico’s FAS, Inc. (NYSE:CHS). This stock makes up 11.27% of Mitarotonda’s 13F portfolio.
Out of the elite hedge funds tracked by Insider Monkey, 22 had stakes in Chico’s FAS, Inc. (NYSE:CHS), equaling $177.6 million. The biggest stakeholder in the company is Jim Simons’ Renaissance Technologies, owning stakes worth $45.5 million in the clothing retailer.
In the Q2 2021 investor letter of Miller Value Partners, the fund mentioned Chico’s FAS, Inc. (NYSE: CHS) and discussed the exceptional performance of the firm in Q1. Here is what they said:
“Chico’s FAS (CHS) was the top contributor over the quarter, advancing 98.8% in conjunction with the vaccine rollout accelerating apparel demand and strong Q1 results. Chico’s reported Q1 net sales of $388M, +37% above consensus and +38.4% year-over-year (Y/Y) driven by +65% growth at Soma and a +13.4% rise in digital. Gross margin rose to 32.7% on improved leverage of occupancy costs and leaner inventory driving significantly higher full-price selling. For Fiscal Year 2021 (FY21), management expects consolidated net sales improvement of 28%-34%, gross margin improvement of 18-20 percentage points, and Selling, General & Administrative expense (SG&A) rate improvement of 500-600 basis points (bps). Guidance at the midpoint implies revenue of $1.73Bn and gross margins of 32.9%, +7% and +180bps above consensus, respectively. Additionally, activist shareholder Barrington Capital issued a letter to the company, calling for a Board refresh and expanding the scope of financial disclosure in an attempt to unlock value of the rapidly growing Soma brand.”
3. Rambus Inc. (NASDAQ:RMBS)
Mitarotonda’s Stake Value: $12,569,000
Percentage of Mitarotonda’s 13F Portfolio: 11.72%
Number of Hedge Fund Holders: 20
Rambus Inc. (NASDAQ:RMBS) is the third stock on our list of the top 5 stocks to buy according to James Mitarotonda’s Barington Capital. Rambus Inc. (NASDAQ:RMBS) is an American tech company which specializes in interface technologies and architectures that are deployed in digital electronics products.
Barington Capital owns 530,100 shares in Rambus Inc. (NASDAQ:RMBS), valued at $12.56 million, which account for 11.72% of Mitarotonda’s 13F portfolio.
As of the end of June, 20 hedge funds out of the 873 tracked by Insider Monkey held reported owning stakes in Rambus Inc. (NASDAQ:RMBS), worth $381.7 million. The largest stakeholder of the company is Cynthia Paul’s investment firm, Lynrock Lake. Lynrock owns 7.66 million shares valued at $181.7 million in Rambus Inc. (NASDAQ:RMBS).
2. The Eastern Company (NASDAQ:EML)
Mitarotonda’s Stake Value: $17,705,000
Percentage of Mitarotonda’s 13F Portfolio: 16.51%
Number of Hedge Fund Holders: 7
The second stock on our list of the top 5 stocks to buy according to James Mitarotonda’s Barington Capital is The Eastern Company (NASDAQ:EML), which is a Connecticut-based company focusing on three core segments: industrial hardware, metal products, and security products. The company owns four major subsidiaries in Canada, Mexico, Taiwan, and Hong Kong.
The industrial hardware includes locks, latches, hinges, sleeper boxes, and other types of hardware used in various markets. The metal products include expansion support anchors, couplers for braking systems, construction clamps, and electronic fittings. Lastly, The Eastern Company (NASDAQ:EML) also provides security products like electronic and mechanical locks for electronic equipment in consumer markets and the gaming industry.
Mitarotonda’s Barington Capital owns 583,748 shares in The Eastern Company (NASDAQ:EML), worth $17.7 million, making up 16.51% of Mitarotonda’s 13F portfolio.
At the end of June, 7 hedge funds tracked by Insider Monkey held stakes in The Eastern Company (NASDAQ:EML) amounting to $53.4 million. The largest stakeholder in the company is Barington Capital, followed closely by Mario Gabelli’s GAMCO Investors, who own shares in The Eastern Company (NASDAQ:EML) valued at $15.86 million.
1. Bath & Body Works, Inc. (NYSE:BBWI)
Mitarotonda’s Stake Value: $36,045,000
Percentage of Mitarotonda’s 13F Portfolio: 33.61%
Number of Hedge Fund Holders: N/A
Ranking first on our list of the top 5 stocks to buy according to James Mitarotonda’s Barington Capital is Bath & Body Works, Inc. (NYSE:BBWI), an American retail store dealing in soaps, lotions, candles, and perfumes. The Ohio-based store has now expanded across 6 continents, and its products are heavily consumed worldwide, since they are affordable and of excellent quality.
Mitarotonda’s Barington Capital owns 500,203 shares in Bath & Body Works, Inc. (NYSE:BBWI), amounting to $36 million. The stock accounts for 33.61% of Mitarotonda’s 13F portfolio.
The company announced earnings per share for the second quarter on August 18. The actual EPS was $1.34, beating analysts’ consensus estimates by $0.57. The revenue for Bath & Body Works, Inc. (NYSE:BBWI) for Q2 was $3.32 billion, which exceeded estimates by $1.63 billion. Daniela Nedialkova, an analyst associated with Atlantic Equities, upgraded Bath & Body Works, Inc. (NYSE:BBWI) to Overweight from Neutral on September 29, with a price target of $82.
Out of the hedge funds tracked by Insider Monkey, Lone Pine Capital, managed by Stephen Mendel, is the largest stakeholder in Bath & Body Works, Inc. (NYSE:BBWI). The hedge fund owns 26.2 million shares in the company, worth $1.89 billion.
You can also view Top 10 Stocks to Invest in According to John Smith Clark’s Southpoint Capital Advisors and Carl Icahn’s Stock Portfolio: Top 12 Picks.
