Voss Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +1.7% and +1.3%, respectively, in the third quarter compared to a -2.2% return for the Russell 2000 index, -4.6% return for the Russell 2000 Value Index, and -4.9% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Voss Capital highlighted stocks like International Money Express, Inc. (NASDAQ:IMXI) in the Q3 2022 investor letter. Headquartered in Miami, Florida, International Money Express, Inc. (NASDAQ:IMXI) provides money transfer services. On December 7, 2022, International Money Express, Inc. (NASDAQ:IMXI) stock closed at $21.18 per share. One-month return of International Money Express, Inc. (NASDAQ:IMXI) was 2.62% and its shares gained 30.26% of their value over the last 52 weeks. International Money Express, Inc. (NASDAQ:IMXI) has a market capitalization of $784.982 million.
Voss Capital made the following comment about International Money Express, Inc. (NASDAQ:IMXI) in its Q3 2022 investor letter:
“After missing on consensus revenue estimates for the first time since Q4 2019 and implicitly guiding down Q4 by including a recent acquisition in reaffirmed guidance, International Money Express, Inc. (NASDAQ:IMXI) sold off from ~$28 to ~$20 in just two weeks and is now over 20% cheaper on an EV/EBITDA multiple basis than where its inferior competitor MoneyGram is being acquired. The stock is priced like a cigar butt at a >13% FCF yield on our 2024 estimates despite stellar operating results, evidenced by a 5-year 20% organic revenue CAGR along with expanding margins, and a long runway for continued growth in remittances to Latin America. We would note that despite the revenue miss, revenue still grew over 16% in the quarter with organic guidance around that level as well. We believe the market has also not fully incorporated what management will do with the aforementioned La Nacionale acquisition, as there are significant efficiencies to be gained simply by running management’s analytical and data driven growth playbook. IMXI has 77% upside to $35 in our Base Case price target, which would peg it at 9x 2024 EBITDA, a multiple we think is about a 40% discount to other companies with similar organic growth and margin profiles.”
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International Money Express, Inc. (NASDAQ:IMXI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held International Money Express, Inc. (NASDAQ:IMXI) at the end of the third quarter, which was 16 in the previous quarter.
We discussed International Money Express, Inc. (NASDAQ:IMXI) in another article and shared the best performing tech stocks of 2022. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
