Should You Hold Oil-Dri Corporation of America (ODC)?

Palm Valley Capital Management, an investment management firm, released its fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Palm Valley Capital Fund returned 3.86% compared to a 9.19% rise for the S&P SmallCap 600 Index and an 8.05% return for the Morningstar Small Cap Index. A large cash position led the fund to underperform its benchmark index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Palm Valley Capital highlighted stocks like Oil-Dri Corporation of America (NYSE:ODC) in its Q4 2022 investor letter. Headquartered in Chicago, Illinois, Oil-Dri Corporation of America (NYSE:ODC) is a sorbent products manufacturer and distributor. On January 6, 2023, Oil-Dri Corporation of America (NYSE:ODC) stock closed at $34.70 per share. One-month return of Oil-Dri Corporation of America (NYSE:ODC) was 3.67%, and its shares lost 1.64% of their value over the last 52 weeks. Oil-Dri Corporation of America (NYSE:ODC) has a market capitalization of $248.235 million.

Palm Valley Capital made the following comment about Oil-Dri Corporation of America (NYSE:ODC) in its Q4 2022 investor letter:

“The three positions contributing most to the Fund’s fourth quarter performance were the Sprott Physical Silver Trust (ticker: PSLV), Oil-Dri Corporation of America (NYSE:ODC), and Miller Industries. Oil Dri’s revenues rose 19% in Q4 due to price increases, fueling expanding gross margins across its product line, which ranges from cat litter to industrial absorbents. Oil Dri may be closer to the finish line in raising prices than some of the Fund’s other positions that were acquired under a similar thesis.”

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Oil-Dri Corporation of America (NYSE:ODC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held Oil-Dri Corporation of America (NYSE:ODC) at the end of the third quarter which was 5 in the previous quarter.

We discussed Oil-Dri Corporation of America (NYSE:ODC) in another article and shared Palm Valley Capital Management’s views on the company. In addition, please check out our  hedge fund investor letters Q4 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.