Channing Capital Management, LLC Buys 2, Sells 3 in 3rd Quarter

Channing Capital Management, LLC recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Channing Capital Management, LLC is an investment management firm based out of Chicago, Illinois. The company was originally established in 2003 by Wendell Eric Mackey and Eric Taylor McKissack, both of whom are still with the company and of whom McKissack acts as the CEO and CIO of the firm. Channing Capital Management conducts its research internally, utilizing a fundamental methodology to make its investment decisions. The company invests with a bottom up stock picking approach, allocating its assets in the value stocks of small to mid-cap companies in the public equity markets within the United States. Channing Capital Management invests most heavily in the finance sector, which alone makes up over a quarter of the firm’s total asset allocations, and also invests in the industrials, which makes up another fifth of its allocations, consumer discretionary, information technology, and energy sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company holds its allocations for just under 16 quarters on average although the firm only holds its top 10 allocations for 1.8 quarters on average. In the most recent quarter, Channing Capital Management had a turnover rate of approximately 9.2%. Channing Capital Management now operates with 15 employees of which 6 are investment professionals. The company currently oversees over $2.1 billion in total assets under management spread across 58 total accounts, all of which are discretionary accounts. Both of Channing Capital Management’s total number of accounts and total assets under management have been increasing in recent years with its total assets under management growing significantly, increasing from $470 million back in 2010 to well over four times that amount today. The company currently offers a variety of strategies including its Small Cap Value, Mid Cap Value, All Cap Value, SMID Cap Value, and Large Cap Value strategies.

As of the latest 13F report, the guru’s equity portfolio contained 107 stocks valued at a total of $2.89Bil. The top holdings were RRX(2.84%), DAR(2.76%), and ATI(2.57%).

According to GuruFocus data, these were Channing Capital Management, LLC’s top five trades of the quarter.

Healthcare Realty Trust Inc


Channing Capital Management, LLC reduced their investment in NYSE:HR by 2,659,852 shares. The trade had a 2.36% impact on the equity portfolio. During the quarter, the stock traded for an average price of $24.72.

On 11/09/2022, Healthcare Realty Trust Inc traded for a price of $19.55 per share and a market cap of $7.43Bil. The stock has returned -35.09% over the past year.

GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Healthcare Realty Trust Inc has a price-earnings ratio of 44.36, a price-book ratio of 1.36, a price-earnings-to-growth (PEG) ratio of 88.72, a EV-to-Ebitda ratio of 28.61 and a price-sales ratio of 5.12.

The price-to-GF Value ratio is 0.43, earning the stock a GF Value rank of 4.

Hexcel Corp


During the quarter, Channing Capital Management, LLC bought 1,048,861 shares of NYSE:HXL for a total holding of 1,053,288. The trade had a 1.87% impact on the equity portfolio. During the quarter, the stock traded for an average price of $58.21.

On 11/09/2022, Hexcel Corp traded for a price of $58.355 per share and a market cap of $4.91Bil. The stock has returned -5.24% over the past year.

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.

In terms of valuation, Hexcel Corp has a price-earnings ratio of 45.94, a price-book ratio of 3.40, a EV-to-Ebitda ratio of 18.96 and a price-sales ratio of 3.29.

The price-to-GF Value ratio is 1.03, earning the stock a GF Value rank of 5.

FormFactor Inc


Channing Capital Management, LLC reduced their investment in NAS:FORM by 1,276,796 shares. The trade had a 1.62% impact on the equity portfolio. During the quarter, the stock traded for an average price of $32.47.

On 11/09/2022, FormFactor Inc traded for a price of $19.09 per share and a market cap of $1.48Bil. The stock has returned -55.97% over the past year.

GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 6 out of 10.

In terms of valuation, FormFactor Inc has a price-earnings ratio of 16.69, a price-book ratio of 1.84, a EV-to-Ebitda ratio of 8.93 and a price-sales ratio of 1.93.

The price-to-GF Value ratio is 0.50, earning the stock a GF Value rank of 8.

Allegiant Travel Co


The guru sold out of their 433,246-share investment in NAS:ALGT. Previously, the stock had a 1.6% weight in the equity portfolio. Shares traded for an average price of $103.36 during the quarter.

On 11/09/2022, Allegiant Travel Co traded for a price of $75.45 per share and a market cap of $1.39Bil. The stock has returned -61.01% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Allegiant Travel Co has a price-earnings ratio of 193.46, a price-book ratio of 1.16, a EV-to-Ebitda ratio of 10.52 and a price-sales ratio of 0.62.

The price-to-GF Value ratio is 0.39, earning the stock a GF Value rank of 4.

Belden Inc


During the quarter, Channing Capital Management, LLC bought 593,351 shares of NYSE:BDC for a total holding of 988,969. The trade had a 1.23% impact on the equity portfolio. During the quarter, the stock traded for an average price of $63.61.

On 11/09/2022, Belden Inc traded for a price of $75.34 per share and a market cap of $3.22Bil. The stock has returned 14.58% over the past year.

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10.

In terms of valuation, Belden Inc has a price-earnings ratio of 76.06, a price-book ratio of 2.86, a EV-to-Ebitda ratio of 11.45 and a price-sales ratio of 1.32.

The price-to-GF Value ratio is 1.22, earning the stock a GF Value rank of 3.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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