In this article, we discuss 5 of Thomas Bancroft’s Makaira Partners’ stock picks. If you want to see more of Thomas Bancroft’s stock picks, go directly to Thomas Bancroft’s Makaira Partners’ Stock Picks: Liberty Broadband (LBRDA), Bath & Body Works (BBWI), and More.
5. CDW Corporation (NASDAQ:CDW)
Bancroft’s Stake Value: $50,471,000
Percentage of Thomas Bancroft’s 13F Portfolio: 10.01%
Number of Hedge Fund Holders: 27
CDW Corporation (NASDAQ: CDW) provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products, as well as integrated IT solutions, including on-premise, hybrid, and cloud capabilities across data-center and networking, digital workspace, security, and virtualization. CDW Corporation (NASDAQ: CDW) was founded in 1984 and is based in Lincolnshire, Illinois.
This August, Credit Suisse analyst Matthew Cabral raised the firm’s price target on CDW Corporation (NASDAQ: CDW) from $200 to $210 and kept an Outperform rating on the shares. The analyst cites CDW’s second-quarter “solid beat,” with revenues and EPS of $5.15 billion and $2.02 respectively.
According to the latest filings, Makaira Partners owned roughly 289,000 shares in the firm at the end of June 2021 worth $50.4 million, representing 10.01% of the portfolio.
As of the fiscal second quarter of 2021, CDW Corporation (NASDAQ: CDW) reported an EPS of $2.02, beating estimates by $0.22. Total revenue grew 17.88% year over year to $5.15 billion beating estimates by $173.28 million. The share price of CDW Corporation (NASDAQ: CDW) has gained 20.95% over the past 6 months and 50.31% year to date.
By the end of the second quarter of 2021, 27 hedge funds out of the 873 tracked by Insider Monkey held stakes in CDW Corporation (NASDAQ: CDW) worth about $1.76 billion. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $1.90 billion.
Wedgewood Partners, an investment management firm, published its second-quarter 2021 investor letter. The fund mentioned CDW Corporation (NASDAQ: CDW) and discussed its stance on the firm. Here’s what they had to say:
“We have owned CDW stock for nearly two years now, and we have been quite pleased to see our thesis playing out as expected – even with the completely unexpected trauma of the pandemic fireworks during our holding period. These are the key components of our investment thesis, in simplistic form: First, the IT distribution and consulting industry is an attractive place to invest, with secular growth above that of the broad economy. Second, we expect the Company to continue to take share within the IT distribution and consulting industry, growing faster than the industry while continuing to improve margins and returns. The pandemic emerged shortly after our purchase, but even that did not alter the favorable dynamics underlying our thesis, as you can see below…”
4. CarMax, Inc. (NYSE:KMX)
Bancroft’s Stake Value: $56,487,000
Percentage of Thomas Bancroft’s 13F Portfolio: 11.2%
Number of Hedge Fund Holders: 39
CarMax, Inc. (NYSE: KMX), through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, namely, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old. CarMax, Inc. (NYSE: KMX) also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2021, it operated approximately 220 used car stores and 1 new car franchise. CarMax, Inc. (NYSE: KMX) was founded in 1993 and is based in Richmond, Virginia.
This July, BofA analyst John Murphy raised the firm’s price target on CarMax, Inc. (NYSE: KMX) from $150 to $200 and kept a Buy rating on the shares.
According to the latest filings, Makaira Partners owned over 437,000 shares in the firm at the end of June 2021 worth $56.4 million, representing 11.2% of the portfolio.
As of the fiscal first quarter of 2022, CarMax, Inc. (NYSE: KMX) reported an EPS of $2.63, beating estimates by $0.99. Total revenue grew 138.41% year over year to $7.70 billion beating estimates by $1.51 billion. On top of this, the share price of CarMax, Inc. (NYSE: KMX) has grown by 5.29% over the past 6 months and 50.36% year to date.
By the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in CarMax, Inc. (NYSE: KMX) worth about $1.62 billion. This is compared to 46 hedge funds in the previous quarter with a total stake value of approximately $2.03 billion.
Giverny Capital, an asset management firm, published its second-quarter 2021 investor letter. The fund mentioned CarMax, Inc. (NYSE: KMX) and discussed its stance on the firm. Here’s what they had to say:
“We’re quite optimistic about Carmax, our second largest position. For several years, investors have gravitated to a thesis that a handful of start-ups that sell used cars in an online-only format will end up with a lower cost structure than Carmax. This even though Carmax appears today to have lower costs to buy used cars for its inventory, recondition them for resale and transport them to stores – all problems that are not solved by a good web site. Carmax also amortizes its national advertising over a much larger sales base than competitors, giving it lower marketing expense per vehicle…”
3. Zebra Technologies Corporation (NASDAQ:ZBRA)
Bancroft’s Stake Value: $57,121,000
Percentage of Thomas Bancroft’s 13F Portfolio: 11.32%
Number of Hedge Fund Holders: 34
Zebra Technologies Corporation (NASDAQ: ZBRA), together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It operates in two segments, namely, Asset Intelligence & Tracking and Enterprise Visibility & Mobility. The company serves retail and e-commerce, transportation and logistics, manufacturing, healthcare, hospitality, warehouse and distribution, energy and utilities, government, education, and banking enterprises. It sells its products, solutions, and services through distributors, value-added resellers, independent software vendors, direct marketers, and original equipment manufacturers. Zebra Technologies Corporation (NASDAQ: ZBRA) was founded in 1969 and is headquartered in Lincolnshire, Illinois.
This August, Baird analyst Richard Eastman raised the firm’s price target on Zebra Technologies Corporation (NASDAQ: ZBRA) from $490 to $560 and kept an Outperform rating on the shares. The analyst believes in strong secular demand in its expanding offering of solutions to digitize and automate workflows, plus strong competitive positioning and balance sheet support his long-term growth view.
According to the latest filings, Makaira Partners owned over 107,000 shares in the firm at the end of June 2021 worth more than $57 million, representing 11.32% of the portfolio.
As of the fiscal second quarter of 2021, Zebra Technologies Corporation (NASDAQ: ZBRA) reported an EPS of $4.57, beating estimates by $0.45. Total revenue grew 44.04% year over year to $1.38 billion beating estimates by $30.88 million. On top of this, Zebra Technologies Corporation (NASDAQ: ZBRA) has gained 23.74% over the past 6 months and 50.52% year to date.
By the end of the second quarter of 2021, 34 hedge funds out of the 873 tracked by Insider Monkey held stakes in Zebra Technologies Corporation (NASDAQ: ZBRA) worth about $1.20 billion. This is compared to 35 hedge funds in the previous quarter with a total stake value of approximately $1.16 billion.
2. Bath & Body Works, Inc. (NYSE:BBWI)
Bancroft’s Stake Value: $97,184,000
Percentage of Thomas Bancroft’s 13F Portfolio: 19.27%
Number of Hedge Fund Holders: N/A
Bath & Body Works, Inc. (NYSE: BBWI) engages in the retailing of body care, home fragrance products, soaps, and sanitizers. The company sells its products under Bath & Body Works, White Barn, C.O. Bigelow, and other brand names online and at retail stores located in the United States, Canada, and internationally. Bath & Body Works, Inc. (NYSE: BBWI) operates approximately 1,750 company-operated locations and 300 international franchised locations, as well as bathandbodyworks.com. Bath & Body Works, Inc. (NYSE: BBWI) was founded in 1963 and is headquartered in Columbus, Ohio.
This August B. Riley analyst Susan Anderson raised the firm’s price target on Bath & Body Works, Inc. (NYSE: BBWI) from $71.93 to $78 and kept a Buy rating on the shares. She anticipates “solid growth” for Bath & Body Works, Inc. (NYSE: BBWI) given the company’s growth initiatives and “replenishment nature” of its products.
According to the latest filings, Makaira Partners owned over 1.34 million shares in the firm at the end of June 2021 worth more than $97 million, representing 19.27% of the portfolio.
As of the fiscal second quarter of 2022, Bath & Body Works, Inc. (NYSE: BBWI) reported an EPS of $1.34, beating estimates by $0.57. Total revenue grew 43.03% year over year to $3.32 billion beating estimates by $1.63 billion. Bath & Body Works, Inc. (NYSE: BBWI) has gained 35.58% over the past 6 months and 107.31% year to date.
1. Liberty Broadband Corporation (NASDAQ:LBRDA)
Bancroft’s Stake Value: $159,690,000
Percentage of Thomas Bancroft’s 13F Portfolio: 31.67%
Number of Hedge Fund Holders: 28
Liberty Broadband Corporation (NASDAQ: LBRDA) is a cable operator and provides video, Internet, and voice services to residential, and small and medium business customers in the United States. Liberty Broadband Corporation (NASDAQ: LBRDA) operates through Skyhook and Charter segments. The company also provides internet services, including an in-home Wi-Fi product that provides customers with high-performance wireless routers, and a security suite that offers protection against computer viruses and spyware. Liberty Broadband Corporation (NASDAQ: LBRDA) is based in Englewood, Colorado.
This August, Pivotal Research analyst Jeffrey Wlodarczak raised the firm’s price target on Liberty Broadband Corporation (NASDAQ: LBRDA) from $226 to $267 and kept a Buy rating on the shares.
According to the latest filings, Makaira Partners owned over 919,000 shares in the firm at the end of June 2021 worth more than $159.6 million, representing 31.67% of the portfolio.
As of the fiscal second quarter of 2021, Liberty Broadband Corporation (NASDAQ: LBRDA) reported an EPS of $0.30, missing estimates by -$1.33. Total revenue grew 5,789.26% year over year to $242.28 million missing estimates by -$8.32 million. The share price of Liberty Broadband Corporation (NASDAQ: LBRDA) has gained 16.07% over the past 6 months and 10.92% year to date.
By the end of the second quarter of 2021, 28 hedge funds out of the 873 tracked by Insider Monkey held stakes in Liberty Broadband Corporation (NASDAQ: LBRDA) worth about $904.8 million. This is compared to 23 hedge funds in the previous quarter with a total stake value of approximately $774.8 million.
Alphyn Capital Management, an investment management firm, published its first-quarter 2021 investor letter in which the fund mentioned Liberty Broadband Corporation (NASDAQ: LBRDA). Here’s what they said:
“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”
See also Aquamarine Capital’s Top 10 Stock Picks and Barry Rosenstein and Jana Partners’ Top Stock Picks.
