5) Modine Manufacturing Company (NYSE:MOD)
GAMCO Investors’ Stake Value: $138.9 million
Percentage of GAMCO Investors’ 13F Portfolio: 1.51%
Number of Hedge Fund Holders: 31
Modine Manufacturing Company (NYSE:MOD) offers thermal management solutions to diversified markets and customers. It offers engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications primarily in the United States.
Modine Manufacturing Company (NYSE:MOD)’s stock has seen a strong run up of over ~80% on a YTD basis. Much of this appreciation was mainly due to the benefits of AI infrastructure upcycle. The company enhanced data center cooling solutions and manufacturing capacity to address increased demand. Moving forward, its technology roadmap and focus on high-potential businesses should continue to act as tailwinds for future growth in the AI data center market.
Modine Manufacturing Company (NYSE:MOD) kicked off its fiscal year with healthy 1Q 2025 results, exceeding expectations and leading to an upgraded financial outlook for FY 2025. Its gross profit went up by 27% to reach $162.6 million and its gross margin saw an improvement of 400 basis points to 24.6%. This was mainly because of benefits from ongoing 80/20 initiatives, increased average selling prices, lower material costs, and a favorable sales mix.
The business momentum in its high-growth, high-margin areas – which includes data centers and stationary power generation – remains healthy and should help offset further softness in automotive, agriculture, and construction equipment markets. Modine Manufacturing Company (NYSE:MOD) expects data center sales to grow in the range of 80% – 90%, which is a strong increase from its initial guidance of 60% to 70%.
The company continues to develop new products and anticipates significant growth in EV offerings. Modine Manufacturing Company (NYSE:MOD) now focuses on M&A opportunities globally and expects a revival in heat pump demand later in the year or the following year. The company’s performance is expected to stem from growth areas like data centers, HVAC, and liquid air ATS.
Analysts at B. Riley increased their price objective on shares of Modine Manufacturing Company (NYSE:MOD) from $125.00 to $140.00, giving the stock a “Buy” rating on 1st August. As per Insider Monkey’s data, 31 hedge funds were long Modine Manufacturing Company (NYSE:MOD) as of 2Q 2024.
Chartwell Investment Partners, LLC, an affiliate of Carillon Tower Advisers, Inc., released third quarter 2023 investor letter and mentioned Modine Manufacturing Company (NYSE:MOD). Here is what the fund said:
“Modine Manufacturing Company (NYSE:MOD) was another strong performer. Modine’s performance technologies segment is experiencing high demand as it provides thermal solutions for electronic vehicle (EV) and hybrid vehicle manufacturers. The company also has focused on growth opportunities in the data-center market, selling data center cooling solutions needed for energy intensive artificial intelligence (AI) projects.”
