With the purchase of nearly 185,000 shares on April 21, two weeks after they were trading at more than 25% below their 52-week low, guru Mario Gabelli (Trades, Portfolio) made Pep Boys - Manny Moe & Jack (PBY, Financial) the seventh-largest holding in his portfolio. Prior to that purchase, Pep Boys was the ninth-largest stake in Gabelli’s portfolio.
Gabelli, the founder, chairman and CEO of Gabelli Asset Management Company Investors (GAMCO Investors), an investment firm based in Rye, New York, bought the shares in Pep Boys, a specialty retail and tire repair business headquartered in Philadelphia, for an average price of $8.92 per share. Pep Boys has been in Gabelli’s portfolio since the second quarter of 2010.
Pep Boys posted a net loss of $26.7 million – or $0.50 per share – for the fourth quarter of fiscal year 2014 compared to a net loss of $3.3 million – or $0.06 per share – for the fourth quarter of fiscal 2013. Fourth-quarter sales were up 1.3% to $502.4 million from $495.7 million in 2013. Same-store sales increased 1.3%.
According to reports, Pep Boys continued to experience higher sales and improved margins in the first quarter of 2015.
In other news affecting Pep Boys, GAMCO Asset Management Inc. notified the company last week of its intention to nominate five candidates for the board of directors at Pep Boys’ annual shareholders’ meeting.
Pep Boys has a market cap of $489.95 million and an enterprise value of $664.9 million. It has a Price/Book of 0.9 and a Price/Sales of 0.2.
Guru Donald Smith (Trades, Portfolio) also has shares of Pep Boys in his portfolio.
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