In this article, we discuss 5 stocks to buy according to Richard Scott Greeder’s Broad Bay Capital. If you want to read our detailed analysis of Greeder’s investment philosophy and performance, go directly to 10 Stocks to Buy According to Richard Scott Greeder’s Broad Bay Capital.
5. Cavco Industries, Inc. (NASDAQ:CVCO)
Broad Bay Capital’s Stake Value: $52,525,000
Percentage of Broad Bay Capital’s 13F Portfolio: 8.22%
Number of Hedge Fund Holders: 21
Cavco Industries, Inc. (NASDAQ:CVCO) manufactures factory-built housing items and sells them mainly via a network of privately owned and business-owned merchants. Broad Bay Capital started building its position in Cavco Industries, Inc. (NASDAQ:CVCO) during the fourth quarter of 2018, buying shares worth over $13.04 million. The hedge fund owned shares worth roughly $52.53 million at the end of Q2 2022. The company represented 8.22% of the hedge fund’s 13F portfolio.
On August 8, Craig-Hallum analyst Greg Palm maintained a ‘Buy’ rating on Cavco Industries, Inc. (NASDAQ:CVCO) while increasing his price objective to $335 from $322. The analyst noted that Cavco Industries, Inc. (NASDAQ:CVCO)’s Q1 performance was good, with revenue and profitability above forecasts.
Cavco Industries, Inc. (NASDAQ:CVCO) experienced a decline in hedge fund sentiment in Q2 2022, as 21 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the period, compared to 26 in the preceding quarter. The aggregate value of stakes held by 21 hedge funds stood at more than $183.12 million.
4. The Liberty SiriusXM Group (NASDAQ:LSXMA)
Broad Bay Capital’s Stake Value: $53,105,000
Percentage of Broad Bay Capital’s 13F Portfolio: 8.31%
Number of Hedge Fund Holders: 44
The Liberty SiriusXM Group (NASDAQ:LSXMA) operates in the US and Canada’s entertainment industry through its subsidiaries. As of December 31, 2021, there were roughly 34 million Sirius XM customers and approximately 6.4 million Pandora subscribers. Broad Bay Capital owns a position worth $53.11 million in The Liberty SiriusXM Group (NASDAQ:LSXMA), representing 8.31% of the fund’s Q2 portfolio.
On August 8, Credit Suisse analyst Brian Russo reaffirmed an ‘Outperform’ rating on The Liberty SiriusXM Group (NASDAQ:LSXMA) while trimming his price objective from $64 to $52. The analyst modified his model to take into consideration Q2 actual performance, including SiriusXM’s Q1 performance, changes in peer trading prices, and Live Nation Entertainment, Inc. (NYSE:LYV)’s exchangeable debt payments.
Warren Buffett’s Berkshire Hathaway held the most prominent stake in The Liberty SiriusXM Group (NASDAQ:LSXMA), with 43.21 million shares worth $1.56 billion. At the end of Q2 2022, 44 hedge funds tracked by Insider Monkey were bullish on The Liberty SiriusXM Group (NASDAQ:LSXMA), down from 46 in the quarter earlier. The consolidated value of these stakes is over $1.70 billion.
Here is what Weitz Investment Management has to say about The Liberty SiriusXM Group (NASDAQ:LSXMA) in its Q2 2022 investor letter:
“We also closed our position in Liberty Braves (NASDAQ:BATRA). Sports franchises possess unique value characteristics, but as a smaller position and with many cheaper alternatives, we elected to move on.”
3. Elastic N.V. (NYSE:ESTC)
Broad Bay Capital’s Stake Value: $55,828,000
Percentage of Broad Bay Capital’s 13F Portfolio: 8.73%
Number of Hedge Fund Holders: 57
Elastic N.V. (NYSE:ESTC) provides technology solutions built to function in multi-cloud settings, be it public or private clouds. Elastic N.V. (NYSE:ESTC) focuses on product innovation to draw clients and grow its business. As a result, the company’s client base expanded by 21% to 19,300 customers over the previous year. In addition, the typical customer spent roughly 30% more, showing that the firm is successful with its “land-and-expand” approach.
Insider Monkey’s hedge fund database reveals that in the first quarter of 2022, 55 funds were bullish on Elastic N.V. (NYSE:ESTC). In the second quarter of 2022, the number rose to 57 hedge funds. In addition, following the company’s analyst day on September 20, Brent Thill of Jefferies increased his price objective on Elastic N.V. (NYSE:ESTC) from $80 to $90 and retained a ‘Hold’ rating on the shares.
According to the 13F filings for the second quarter of 2022, Broad Bay Capital held over 825,000 shares of Elastic N.V. (NYSE:ESTC), amounting to more than $55.83 million. Elastic N.V. (NYSE:ESTC) is the third-largest holding of the hedge fund and represented 8.73% of its 13F portfolio.
Elastic N.V. (NYSE:ESTC) was discussed in Greenhaven Road Capital’s Q2 2022 investor letter. Here’s what the firm said:
“Shares of Elastic Software, which powers the search for customers such as Uber and provides other security software, ended the quarter down approximately 40% for the year. From the share price, you would think that demand is falling off a cliff, but that is not the case. Revenue is growing at 35%, the balance sheet is rock solid, and net revenue retention continues to hover around 130% as current customers increase their purchases with increased usage. While companies not generating positive cash flow have been obliterated in this downturn, this is a very healthy business that will very likely be cash flow positive this fiscal year. When addressing demand on the most recent call, the CEO did not use the term “forced buyer” but he could have:
“We have not seen any indication of slowdown in the demand and the consumption…. these things are mission-critical to them. So from their perspective (customers), as data grows, they need to use Elastic, and they continue to use Elastic and that’s not a place where we see customers trying to make any optimization. So that is an inherent strength for us, and it’s continuing.”
Given Elastic’s growth rates and operating leverage, if the multiple ceases to compress, we see a clear path to 30%+ returns from here, and still higher returns if / when there is any multiple expansion. Their stock may not have forced buyers, but their products do.”
2. The TJX Companies, Inc. (NYSE:TJX)
Broad Bay Capital’s Stake Value: $56,688,000
Percentage of Broad Bay Capital’s 13F Portfolio: 8.87%
Number of Hedge Fund Holders: 49
The TJX Companies, Inc. (NYSE:TJX) works as an off-price retailer of clothing and home goods with the help of its subsidiaries. Marmaxx, HomeGoods, TJX Canada, and TJX International are its four business segments. On September 19, The TJX Companies, Inc. (NYSE:TJX) announced a quarterly dividend of $0.295 per share, in line with the previous.
On September 16, JPMorgan analyst Matthew Boss maintained an ‘Overweight’ rating on the stock while raising his price objective to $80 from $71. As of the end of the second quarter of 2022, 49 hedge funds out of Insider Monkey’s database of 895 funds held stakes in The TJX Companies, Inc. (NYSE:TJX), compared to 55 funds in the previous quarter.
During Q2 2022, Broad Bay Capital sold 109,000 shares of The TJX Companies, Inc. (NYSE:TJX) and held a stake worth over $56.69 million. Panayotis Takis Sparaggis’ Alkeon Capital Management is The TJX Companies, Inc. (NYSE:TJX)’s most significant stakeholder, with 5.71 million shares worth $318.82 million.
ClearBridge Investments shared its outlook on The TJX Companies, Inc. (NYSE:TJX) in its Q4 2021 investor letter. Here’s what was said about the company:
“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year, for example, in positioning the portfolio to benefit from a flush consumer eager to return to spending and traveling. New positions included TJX, an off-brand retailer with a large presence in the U.S. and Europe that should continue to benefit from the contraction of many traditional retailers, particularly as consumer spending resumes.”
1. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Broad Bay Capital’s Stake Value: $105,715,000
Percentage of Broad Bay Capital’s 13F Portfolio: 16.54%
Number of Hedge Fund Holders: 61
WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), a North American company, specializes in modular space and portable storage solutions. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) announced its acquisition of Allied Office Trailers and Storage Containers on September 19. The company expanded its operations in the eastern United States, adding about 8,000 rental assets to its fleet of mobile offices and movable storage containers.
On August 23, Baird analyst Andrew Wittmann maintained an ‘Outperform’ rating on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) while boosting his price objective to $45 from $42.
Insider Monkey’s data shows that 61 elite hedge funds held stakes in WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) at the end of the second quarter, up from 58 funds a quarter earlier. The total value of these stakes is over $1.53 billion. In the second quarter of 2022, Broad Bay Capital held about 3.26 million shares of WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), worth $105.72 million, representing 16.54% of the hedge fund’s total 13F securities.
WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) was discussed in the Q4 2021 investor letter of ClearBridge Investments. Here’s what the investment management firm said:
“We added six new positions in the fourth quarter, the largest being WillScot Mobile Mini in the industrials sector. WillScot is the leading manufacturer in the modular office and storage end markets. The company has a multitude of idiosyncratic growth drivers that should support a doubling of free cash flow per share over the next four to five years.”
You can also take a peek at 10 Stocks to Buy According to Bulldog Investors and 10 Stocks to Buy According to Peter Simmie’s Bristol Gate Capital Partners
