In this article, we discuss the top 5 stock picks of Joe Huber’s Huber Capital Management. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Joe Huber’s Huber Capital Management.
5. Comtech Telecommunications Corp. (NASDAQ:CMTL)
Huber Capital Management’s Stake Value: $14,201,000
Percentage of Huber Capital Management’s 13F Portfolio: 3.66%
Number of Hedge Fund Holders: 13
Comtech Telecommunications Corp. (NASDAQ:CMTL) is an advanced communications company that leverages satellites, amplifiers, and high-performance transmission technologies to create advanced communications solutions. As of September this year, Comtech Telecommunications Corp. (NASDAQ:CMTL) represents 3.66% of Joe Huber’s Q3 portfolio, with Huber Capital Management owning a $14.2 million stake in the company.
Acacia Research Corporation (NASDAQ:ACTG) is known for buying healthcare and technology businesses, and on November 1, the corporation offered to purchase Comtech Telecommunications Corp. (NASDAQ:CMTL) for $30 per share in cash, which would result in a $790 million transaction. Even though the deal hasn’t been accepted by Comtech Telecommunications Corp. (NASDAQ:CMTL) yet, the board is taking it under consideration. Comtech Telecommunications Corp. (NASDAQ:CMTL) shares shot up by $5.01, or 23%, to $26.58 in pre-market trading following the acquisition report.
At the end of June this year, 13 hedge funds were long Comtech Telecommunications Corp. (NASDAQ:CMTL), with stakes worth $51.1 million.
4. Rent-A-Center, Inc. (NASDAQ:RCII)
Huber Capital Management’s Stake Value: $16,437,000
Percentage of Huber Capital Management’s 13F Portfolio: 4.24%
Number of Hedge Fund Holders: 29
Huber Capital Management owns 292,429 shares in Rent-A-Center, Inc. (NASDAQ:RCII), which is a rent-to-own furniture and electronics company from Texas. The $16.4 million stake in Rent-A-Center, Inc. (NASDAQ:RCII) represents 4.24% of Huber’s Q3 portfolio. Glenn Welling’s Engaged Capital is the leading Rent-A-Center, Inc. (NASDAQ:RCII) stakeholder from the 29 hedge funds that were bullish on the company as per Insider Monkey’s database of elite funds at the end of June this year.
Rent-A-Center, Inc. (NASDAQ:RCII) posted its Q3 results on November 3. EPS in the quarter totaled $1.52, beating estimates by $0.03. The revenue came in at $1.18 billion, up 65.9% from the prior-year quarter, beating estimates by $2.78 billion.
On November 5, Raymond James analyst Bobby Griffin lowered the price target on Rent-A-Center from $70 to $65 and kept a Strong Buy rating on the shares post the Q3 results.
3. Golar LNG Limited (NASDAQ:GLNG)
Huber Capital Management’s Stake Value: $18,795,000
Percentage of Huber Capital Management’s 13F Portfolio: 4.85%
Number of Hedge Fund Holders: 17
Golar LNG Limited (NASDAQ:GLNG) is headquartered in Bermuda, and it owns and operates marine liquified natural gas infrastructure. As of Q3 2021, Joe Huber’s Huber Capital Management holds an $18.79 million stake in the company that represents 4.85% of the firm’s 13F portfolio.
Orbis Investment Management, a hedge fund managed by William B. Gray is the leading stakeholder in Golar LNG Limited (NASDAQ:GLNG), with 11.78 million shares worth $152.8 million. Overall, 17 hedge funds in the database maintained by Insider Monkey as of Q2 were long Golar LNG Limited (NASDAQ:GLNG), with a total stake value of $360.7 million.
Revenue for Q3 was announced on November 9, coming in at $106.60 million, beating estimates by $3.38 million. Golar LNG Limited (NASDAQ:GLNG) posted a loss of $0.81 per share in the third quarter.
2. Microsoft Corporation (NASDAQ:MSFT)
Huber Capital Management’s Stake Value: $21,624,000
Percentage of Huber Capital Management’s 13F Portfolio: 5.58%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT) posted solid Q3 results on October 26, with an EPS of $2.27, exceeding estimates by $0.19. Revenue for the quarter equaled $45.32 billion, beating estimated revenue by $1.33 billion. Credit Suisse analyst Phil Winslow on November 16 assumed coverage of Microsoft Corporation (NASDAQ:MSFT) with an Outperform rating and a $400 price target.
Huber Capital Management owns 76,701 shares in Microsoft Corporation (NASDAQ:MSFT) as of the third quarter, worth $21.62 million, representing 5.58% of the firm’s 13F portfolio.
Arrowstreet Capital is one of the leading Microsoft Corporation (NASDAQ:MSFT) stakeholders as per Insider Monkey’s records, with 17.9 million shares worth over $5 billion. Overall, 266 hedge funds were bullish on the company at the end of Q2, with a total stake value of $62.4 billion.
Alger mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter. Here is what the firm has to say:
“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”
1. KBR, Inc. (NYSE:KBR)
Huber Capital Management’s Stake Value: $30,982,000
Percentage of Huber Capital Management’s 13F Portfolio: 8.00%
Number of Hedge Fund Holders: 36
KBR, Inc. (NYSE:KBR) is an American engineering and technology company that serves the aerospace, defense, industrial, and intelligence markets. Huber Capital Management holds 786,342 shares in KBR, Inc. (NYSE:KBR) as of September this year, valued at $30.9 million, representing 8% of Huber’s Q3 portfolio.
KBR, Inc. (NYSE:KBR) posted its Q3 results on October 28. EPS in the period equaled $0.64, beating estimates by $0.06. Revenue for the third quarter was $1.84 billion, up 33.65% year-over-year, outperforming estimates by $295.54 million.
The biggest stakeholder in KBR, Inc. (NYSE:KBR) is Ross Turner’s Pelham Capital, with 4.3 million shares worth $169.7 million. Overall, 36 hedge funds in the database of Insider Monkey were long KBR, Inc. (NYSE:KBR), with a total stake value of over $1 billion.
You can also take a look at Tech Stock Portfolio: 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management and Top 10 Stocks to Buy According to Jeff Ubben’s ValueAct Capital.
