HEARTLAND ADVISORS INC recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.
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.
Heartland Advisors Inc. is an investment management firm based out of Milwaukee, Wisconsin. The company was established in 1983 and has grown to have 49 employees led by CEO William R. Nasgovitz. Heartland Advisors conducts its research internally, utilizing a fundamental and technical methodology with a bottom up investment approach to make its investment decisions. The company invests in the hedging and public equity markets within the U.S., focusing on security evaluations through its 10 principles of value investing that are designed to identify companies priced at a discount to their intrinsic value. Heartland Advisors invests most heavily in the industrials sector, which alone makes up over a quarter of its total asset allocations, and also invests in the finance, consumer discretionary, information technology, energy, health care, and materials sectors, among others to a lesser degree, in order of decreasing allocation. None of the company’s holdings exceed 3% of its total holdings and the company’s top 10 holdings together make up less than a fifth of its total. Heartland Advisors has a turnover rate of approximately 17%. The company holds over $5.3 billion in total assets under management spread across over 430 accounts, all of which are discretionary accounts. Although Heartland Advisors’s total number of accounts has been somewhat volatile in recent years, being as low as 360 five years ago to as high as 530 in 2012, its total assets under management has been increasing, growing significantly from $2.3 billion back in 2010 to well over twice that amount today. The company mainly caters to individuals, which alone makes up over half of its client base, and also provides services to high net worth individuals, pension and profit sharing plans, charities, investment companies, corporations, and others. Heartland Advisors offers its Select Value, Value, Value Plus, Mid Cap Value, and International Value mutual funds.
As of the latest 13F report, the guru’s equity portfolio contained 193 stocks valued at a total of $1,612,000,000. The top holdings were PRGO(2.00%), NOV(1.76%), and HAE(1.72%).
According to GuruFocus data, these were HEARTLAND ADVISORS INC’s top five trades of the quarter.
Vonage Holdings Corp
The guru sold out of their 1,000,000-share investment in NAS:VG. Previously, the stock had a 1.22% weight in the equity portfolio. Shares traded for an average price of $20.47 during the quarter.
On 05/12/2022, Vonage Holdings Corp traded for a price of $18.25 per share and a market cap of $4,587,463,000. The stock has returned 43.41% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Vonage Holdings Corp has a price-book ratio of 7.99, a EV-to-Ebitda ratio of 68.41 and a price-sales ratio of 3.16.
The price-to-GF Value ratio is 1.21, earning the stock a GF Value rank of 3.
HF Sinclair Corp
During the quarter, HEARTLAND ADVISORS INC bought 452,964 shares of NYSE:DINO for a total holding of 632,174. The trade had a 1.12% impact on the equity portfolio. During the quarter, the stock traded for an average price of $35.21.
On 05/12/2022, HF Sinclair Corp traded for a price of $44.13 per share and a market cap of $9,550,736,000. The stock has returned 31.66% 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, HF Sinclair Corp has a price-earnings ratio of 12.59, a price-book ratio of 1.23, a EV-to-Ebitda ratio of 9.04 and a price-sales ratio of 0.37.
The price-to-GF Value ratio is 1.00, earning the stock a GF Value rank of 7.
ALLETE Inc
The guru established a new position worth 226,400 shares in NYSE:ALE, giving the stock a 0.94% weight in the equity portfolio. Shares traded for an average price of $64.28 during the quarter.
On 05/12/2022, ALLETE Inc traded for a price of $58.24 per share and a market cap of $3,278,463,000. The stock has returned -13.56% 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, ALLETE Inc has a price-earnings ratio of 16.54, a price-book ratio of 1.34, a EV-to-Ebitda ratio of 11.90 and a price-sales ratio of 2.08.
The price-to-GF Value ratio is 0.77, earning the stock a GF Value rank of 10.
BWX Technologies Inc
The guru established a new position worth 274,459 shares in NYSE:BWXT, giving the stock a 0.92% weight in the equity portfolio. Shares traded for an average price of $49.09 during the quarter.
On 05/12/2022, BWX Technologies Inc traded for a price of $46.93 per share and a market cap of $4,476,077,000. The stock has returned -27.39% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, BWX Technologies Inc has a price-earnings ratio of 15.15, a price-book ratio of 7.05, a price-earnings-to-growth (PEG) ratio of 1.36, a EV-to-Ebitda ratio of 11.24 and a price-sales ratio of 2.18.
The price-to-GF Value ratio is 0.74, earning the stock a GF Value rank of 10.
Encompass Health Corp
During the quarter, HEARTLAND ADVISORS INC bought 196,747 shares of NYSE:EHC for a total holding of 377,035. The trade had a 0.87% impact on the equity portfolio. During the quarter, the stock traded for an average price of $65.64.
On 05/12/2022, Encompass Health Corp traded for a price of $63.03 per share and a market cap of $6,569,832,000. The stock has returned -27.45% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Encompass Health Corp has a price-earnings ratio of 16.82, a price-book ratio of 3.32, a price-earnings-to-growth (PEG) ratio of 3.58, a EV-to-Ebitda ratio of 9.49 and a price-sales ratio of 1.26.
The price-to-GF Value ratio is 0.82, earning the stock a GF Value rank of 9.
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.
Want to provide feedback on this article? Have questions or concerns? Get in touch with us here, or email us at [email protected]!
This article is general in nature and does not represent the opinions of GuruFocus or any of its affiliates. This article is not intended to be financial advice, nor does it constitute investment advice or recommendations. It was written without regard to your individual situation or financial goals. We aim to bring you fundamental, data-driven analysis, The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
