In a couple of new filings with the U.S. Securities and Exchange Commission, Diamond Hill Capital, led by Ric Dillon, disclosed upping its stake in Hub Group Inc (NASDAQ:HUBG), and reducing its position in Steiner Leisure Ltd (NASDAQ:STNR). According to the filing, Diamond Hill owns 2.62 million shares of Hub Group Inc (NASDAQ:HUBG), up from 1.92 million shares the firm reported in its latest 13F. The stake is passive by nature, and represents 7.1% of the company’s common stock. Another filing showed that Diamond Hill has reduced its holding of Steiner Leisure Ltd (NASDAQ:STNR) to 729,800 shares from 1.4 million shares the investor held earlier. The new passive stake accounts for 5.4% of common stock, down from 10.3%.
Based in Columbus, Ohio, Diamond Hill Capital Management is an independent investment management firm, which is owned by Diamond Hill Investment Group, Inc. (NASDAQ:DHIL). Diamond Hill was founded by Ric Dillon in 2000, and is being co-managed by Chuck Bath. The firm uses a proprietary investment model to determine intrinsic value. Its model looks at normalized earnings and growth rate, payout ratio and dividends, terminal earnings multiple, and required rate of return. Currently, Diamond Hill manages around $14.4 billion in assets.
The value of Diamond Hill’s equity portfolio totaled around $13 billion as of the end of September 2014. During the third quarter, the firm had strong focus on Financials, Services, Consumer Goods, Technology, and Healthcare stocks. It disclosed largest positions in Citigroup Inc (NYSE:C), United Technologies Corporation (NYSE:UTX), and American International Group Inc (NYSE:AIG). According to its latest 13F, Diamond Hill held 6.95 million shares in Citigroup Inc (NYSE:C) as of the end of September 2014. The investor reported holding 3.26 million shares of United Technologies Corporation (NYSE:UTX), and 6.37 million shares of American International Group Inc (NYSE:AIG) as of the end of September 30.
Hub Group Inc (NASDAQ:HUBG) is an asset-light freight transportation management company engaged in providing intermodal, truck brokerage and logistics services. The $1.41 billion market cap company is operating throughout the United States, Canada and Mexico. It reported net income of $51.6 million for full-year 2014, down from $69.1 million in 2013. Earnings per common share was $1.41, versus $1.88 in 2013. Share price of the company dropped 4.74% since February 2014. Currently, it is trading at $37.62.
Among the largest shareholders of Hub Group Inc (NASDAQ:HUBG) is Ken Fisher’s Fisher Asset Management, which reported ownership of 1.68 million shares as of the end of September 2014. Another investor, Royce & Associates, led by Chuck Royce, revealed holding 396,900 shares of the company as of the end of September 30.
Let’s talk about Steiner Leisure Ltd (NASDAQ:STNR), in which Diamond Hill disclosed reducing its passive stake to 5.4% from 10.3%.
Steiner Leisure Ltd (NASDAQ:STNR) is engaged in providing spa services, including traditional and alternative massage, body and skin treatment options, fitness, acupuncture, medi-spa treatments and laser hair removal. The company is located in Florida, and has a market cap of nearly $626 million. In December, Steiner Leisure Ltd (NASDAQ:STNR) announced the appointment of Stephen Lazarus as chief operating officer and chief financial officer. Mr. Lazarus had served as executive vice president and chief financial officer since 2006.
Other investor that see value in Steiner Leisure Ltd (NASDAQ:STNR) include Basswood Capital, run by Matthew Lindenbaum, which disclosed owning 82,588 shares of the company as of the end of the third quarter of 2014. Whitebox Advisors, led by Andy Redleaf, held 24,600 shares of the company as of the end of September 2014.
In December 2014, Steiner Leisure Ltd (NASDAQ:STNR) Director Michael Indursky reported selling an aggregate of 5,000 shares of the company in a couple of transactions. The shares were sold at an average price of around $43 apiece. Following the sale, Indursky owns 23,900 shares of the company.
On Monday, Steiner Leisure Ltd (NASDAQ:STNR) is trading at $45.85. The stock lost nearly 5% during last year. However, it improved in last six months, moving up by 13.56%. The consensus average target price for the stock is $52.67, while the consensus average recommendation ‘Buy.’
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