Palm Valley Capital: “We See Considerable Room for Crawford (CRDA) to Improve its Margins”

Palm Valley Capital Management, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. Two-thirds of the non-financial members in the Russell 2000 Index are either unprofitable or trade above 20x EV/EBIT. The median EBIT growth since 2019 for small caps in the sub 10x EV/EBIT bucket is an astonishing 194%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q2 2022 investor letter, Palm Valley Capital Fund mentioned Crawford & Company (NYSE:CRDA) and explained its insights for the company. Founded in 1941, Crawford & Company (NYSE:CRDA) is an Atlanta, Georgia-based claims management company with a $350.0 million market capitalization. Crawford & Company (NYSE:CRDA) delivered a -1.34% return since the beginning of the year, while its 12-month returns are down by -22.13%. The stock closed at $7.39 per share on July 15, 2022.

Here is what Palm Valley Capital Fund has to say about Crawford & Company (NYSE:CRDA) in its Q2 2022 investor letter:

“The long sleepy shares of Crawford & Co. rose modestly during the quarter. The insurance claims management provider’s first quarter results, while not great, were better than expected. We see considerable room for Crawford to improve its margins, which lag peers.”

Rawpixel.com/Shutterstock.com

Our calculations show that Crawford & Company (NYSE:CRDA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Crawford & Company (NYSE:CRDA) delivered a -6.22% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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