DISCIPLINED GROWTH INVESTORS INC /MN Buys 3, Sells 2 in 1st Quarter

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May 18, 2022
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DISCIPLINED GROWTH INVESTORS INC /MN 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.

Disciplined Growth Investors Inc. is an investment management firm based out of Minneapolis, Minnesota. The company was established in 1997 by founder Fred Martin and began with approximately $700 million in assets under management. The company would grow to $1.7 billion in assets under management by 2009 with 145 clients. Disciplined Growth Investors offers two equity portfolios, its small and mid-cap growth portfolios, and a balanced portfolio for its clients, all of which were launched in 1997. The firm is still headed by its President and CIO Fred Martin and currently operates with 17 employees of which 10 are investment professionals. Disciplined Growth Investors utilizes a value focused approach and focuses on investing in the growth stocks of companies, attempting to exploit stock volatility. Its research focuses on building financial models to assess intrinsic value and create comprehensive understanding of businesses. Disciplined Growth Investors invests most heavily in the information technology sector, which alone makes up over a third of its total asset allocations, and also invests in the consumer discretionary sector, making up another quarter of its allocations, health care, industrials, and transports sectors, among others to a lesser degree, in order of decreasing allocation. The company holds over $4.4 billion in total assets under management spread across 168 accounts, all of which are discretionary accounts. Although Disciplined Growth Investors’s total number of accounts held has been relatively stable in recent years, its total assets under management has been increasing, growing significantly from just under a billion to well over 4 times that amount today. Disciplined Growth Investors mainly caters to individuals and high net worth individuals, each of which make up over a quarter of its client base, and also caters to pension and profit sharing plans, investment advisors, corporations, investment companies, charities, insurance companies, and others, in order of decreasing clientele.

As of the latest 13F report, the guru’s equity portfolio contained 96 stocks valued at a total of $4,608,000,000. The top holdings were SWN(4.28%), AKAM(4.15%), and PLXS(4.03%).

According to GuruFocus data, these were DISCIPLINED GROWTH INVESTORS INC /MN’s top five trades of the quarter.

IHS Markit Ltd


The guru sold out of their 408,846-share investment in NYSE:INFO. Previously, the stock had a 1.09% weight in the equity portfolio. Shares traded for an average price of $116.3 during the quarter.

On 05/18/2022, IHS Markit Ltd traded for a price of $108.61 per share and a market cap of $43,344,119,000. The stock has returned 21.07% over the past year.

There is insufficient data to calculate the stock’s financial strength and profitability ratings.

In terms of valuation, IHS Markit Ltd has a price-earnings ratio of 36.20, a price-book ratio of 4.57, a price-earnings-to-growth (PEG) ratio of 1.59, a EV-to-Ebitda ratio of 22.35 and a price-sales ratio of 9.36.

S&P Global Inc


The guru established a new position worth 116,607 shares in NYSE:SPGI, giving the stock a 1.04% weight in the equity portfolio. Shares traded for an average price of $407.24 during the quarter.

On 05/18/2022, S&P Global Inc traded for a price of $330.12 per share and a market cap of $112,207,789,000. The stock has returned -8.69% over the past year.

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

In terms of valuation, S&P Global Inc has a price-earnings ratio of 23.82, a price-book ratio of 2.82, a price-earnings-to-growth (PEG) ratio of 3.02, a EV-to-Ebitda ratio of 22.27 and a price-sales ratio of 9.53.

The price-to-GF Value ratio is 0.80, earning the stock a GF Value rank of 9.

Microchip Technology Inc


During the quarter, DISCIPLINED GROWTH INVESTORS INC /MN bought 388,318 shares of NAS:MCHP for a total holding of 2,048,634. The trade had a 0.63% impact on the equity portfolio. During the quarter, the stock traded for an average price of $75.38.

On 05/18/2022, Microchip Technology Inc traded for a price of $66.14 per share and a market cap of $36,773,227,000. The stock has returned -2.30% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 9 out of 10.

In terms of valuation, Microchip Technology Inc has a price-earnings ratio of 29.21, a price-book ratio of 6.24, a price-earnings-to-growth (PEG) ratio of 1.39, a EV-to-Ebitda ratio of 15.69 and a price-sales ratio of 5.48.

The price-to-GF Value ratio is 1.07, earning the stock a GF Value rank of 5.

The Middleby Corp


The guru sold out of their 84,287-share investment in NAS:MIDD. Previously, the stock had a 0.33% weight in the equity portfolio. Shares traded for an average price of $181.87 during the quarter.

On 05/18/2022, The Middleby Corp traded for a price of $141.66 per share and a market cap of $7,704,863,000. The stock has returned -14.83% 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, The Middleby Corp has a price-earnings ratio of 16.58, a price-book ratio of 3.17, a price-earnings-to-growth (PEG) ratio of 2.30, a EV-to-Ebitda ratio of 12.49 and a price-sales ratio of 2.30.

The price-to-GF Value ratio is 0.84, earning the stock a GF Value rank of 9.

VIZIO Holding Corp


The guru established a new position worth 991,110 shares in NYSE:VZIO, giving the stock a 0.19% weight in the equity portfolio. Shares traded for an average price of $13.38 during the quarter.

On 05/18/2022, VIZIO Holding Corp traded for a price of $8.35 per share and a market cap of $1,608,375,000. The stock has returned -61.64% over the past year.

GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 5 out of 10.

In terms of valuation, VIZIO Holding Corp has a price-book ratio of 4.77, a EV-to-Ebitda ratio of -47.94 and a price-sales ratio of 0.69.


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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