Is Spire (SR) A Smart Long-Term Buy?

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned Spire Inc. (NYSE: SR) and discussed its stance on the firm. Spire Inc. is a St. Louis, Missouri-based natural gas distribution company with a $3.3 billion market capitalization. SR delivered a 0.66% return since the beginning of the year, while its 12-month returns are up by 1.72%. The stock closed at $64.46 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about Spire Inc.  in its Q3 2021 investor letter:

” In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We also added Spire Inc. (SR) which trades at a heavily discounted multiple, reflecting a worst-case scenario on one of its pipelines.”

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Based on our calculations, Spire Inc. (NYSE: SR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SR was in 11 hedge fund portfolios at the end of the third quarter of 2021, compared to 9 funds in the previous quarter. Spire Inc. (NYSE: SR) delivered a 3.88% return in the past 3 months.

In August 2021, we published an article that includes SR in the 10 Utilities Stocks with Over 3% Dividend Yield. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.