Investment management company Maran Capital Management recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. Maran Partners Fund returned +5.2%, net of all fees and expenses in the first quarter. The fund compounded approximately 12% per year (net) over the last five years. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Maran Capital highlighted stocks like Ranger Energy Services, Inc. (NYSE:RNGR) in the first quarter 2023 investor letter. Headquartered in Houston, Texas, Ranger Energy Services, Inc. (NYSE:RNGR) provides well-service rigs and associated services. On May 4, 2023, Ranger Energy Services, Inc. (NYSE:RNGR) stock closed at $11.08 per share. One-month return of Ranger Energy Services, Inc. (NYSE:RNGR) was 2.59%, and its shares gained 14.34% of their value over the last 52 weeks. Ranger Energy Services, Inc. (NYSE:RNGR) has a market capitalization of $287.219 million.
Maran Capital made the following comment about Ranger Energy Services, Inc. (NYSE:RNGR) in its Q1 2023 investor letter:
“I have previously described Ranger Energy Services, Inc. (NYSE:RNGR) as a company that provides proverbial “picks and shovels” to the energy industry. It is an onshore domestic oil services company that helps E&Ps service their wells, once drilled. While energy is a volatile, commodity-driven business, Ranger is a small, well-run, now unlevered company that should stay pretty busy as long as oil stays above, say, $50-60/barrel, which is a reasonable long-term assumption. Last year, Ranger generated $100 million of EBITDA on $700 million of sales, and it should do better this year. The business requires some capex, so the free cash flow of the business is around $70 million. Ranger has paid down its debt from over $75 million a year ago to almost zero today.
Ranger’s market cap is $300 million, so the business is trading at 3x EBITDA and just over 4x Free Cash Flow. Now that its balance sheet is clean, it will start to buy back shares. At the current pace of FCF generation, it could buy back approximately 2% of its shares every month. With a low float and high insider ownership, it may not take much for the stock to re-rate.”
Pixabay/Public Domain
Ranger Energy Services, Inc. (NYSE:RNGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Ranger Energy Services, Inc. (NYSE:RNGR) at the end of the fourth quarter which was 5 in the previous quarter.
We discussed Ranger Energy Services, Inc. (NYSE:RNGR) in another article and shared the list of high growth micro-cap stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Best Industrial Machinery Stocks to Buy
- 15 Best Income Stocks to Buy According to Analysts
- 12 Best Video Game Stocks to Buy Now
Disclosure: None. This article is originally published at Insider Monkey.
