EMERALD ADVISERS, 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.
Emerald Advisers Inc. is an investment management firm based out of Lancaster, Pennsylvania. The company was originally established in 1991 and operates as a subsidiary of its parent company Emerald Asset Management, Inc. Emerald Advisers conducts its research internally, utilizing a quantitative and fundamental methodology to make its investment decisions. The company invests in the growth stocks of small to large cap companies, allocating its assets in the public equity markets within the United States. Emerald Advisers benchmarks its performance against the Russell 200 Growth Index and the Russell Mid Cap Growth Index. The company invests most heavily in the information technology sector, which alone makes up a quarter of its total asset allocations, and also invests in the finance, health care, consumer discretionary, and industrials sectors, among other sectors to a lesser degree, in order of decreasing allocation. Emerald Advisers holds its allocations for just over 9 quarters on average although the firm only holds its top 10 allocations, which makes up under a sixth of its total allocations, for 3.9 quarters on average. In the most recent quarter, Emerald Advisers had a turnover rate of approximately 21.6%. The company manages over $2.1 billion in total assets under management spread across 63 total accounts, all of which are discretionary. Although the firm’s total number of accounts has been decreasing in recent years, its total assets under management has been on an upward trend, growing significantly from $1.2 billion back in 2010 to its current amount. Emerald Advisers mainly caters to state and municipal entities, which makes up over half of its client base and constitutes over half of its total attributed assets, and also provides services to a variety of other clientele. The company takes advisory fees in the form of a percentage of assets and offers a variety of mutual funds including its Small Cap Value and Banking & Finance funds.
As of the latest 13F report, the guru’s equity portfolio contained 249 stocks valued at a total of $1.94Bil. The top holdings were GTLS(2.54%), PLMR(2.16%), and SMPL(1.90%).
According to GuruFocus data, these were EMERALD ADVISERS, LLC’s top five trades of the quarter.
Biohaven Pharmaceutical Holding Co Ltd
The guru sold out of their 171,023-share investment in NYSE:BHVN. Previously, the stock had a 1.28% weight in the equity portfolio. Shares traded for an average price of $148.2 during the quarter.
On 10/25/2022, Biohaven Pharmaceutical Holding Co Ltd traded for a price of $14.08 per share and a market cap of $1.01Bil. The stock has returned -89.71% over the past year.
GuruFocus gives the company a financial strength rating of 2 out of 10 and a profitability rating of 1 out of 10.
In terms of valuation, Biohaven Pharmaceutical Holding Co Ltd has a EV-to-Ebitda ratio of -15.28 and a price-sales ratio of 1.13.
Alkermes PLC
EMERALD ADVISERS, LLC reduced their investment in NAS:ALKS by 740,190 shares. The trade had a 1.14% impact on the equity portfolio. During the quarter, the stock traded for an average price of $26.01.
On 10/25/2022, Alkermes PLC traded for a price of $23.08 per share and a market cap of $3.79Bil. The stock has returned -27.42% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Alkermes PLC has a price-book ratio of 3.50, a EV-to-Ebitda ratio of -228.18 and a price-sales ratio of 3.20.
The price-to-GF Value ratio is 1.09, earning the stock a GF Value rank of 3.
Avient Corp
EMERALD ADVISERS, LLC reduced their investment in NYSE:AVNT by 523,679 shares. The trade had a 1.08% impact on the equity portfolio. During the quarter, the stock traded for an average price of $41.44.
On 10/25/2022, Avient Corp traded for a price of $33.99 per share and a market cap of $3.09Bil. The stock has returned -37.32% 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, Avient Corp has a price-earnings ratio of 12.50, a price-book ratio of 1.70, a price-earnings-to-growth (PEG) ratio of 3.13, a EV-to-Ebitda ratio of 7.84 and a price-sales ratio of 0.63.
The price-to-GF Value ratio is 0.72, earning the stock a GF Value rank of 9.
Blueprint Medicines Corp
The guru established a new position worth 318,574 shares in NAS:BPMC, giving the stock a 1.08% weight in the equity portfolio. Shares traded for an average price of $64.23 during the quarter.
On 10/25/2022, Blueprint Medicines Corp traded for a price of $49.24 per share and a market cap of $2.94Bil. The stock has returned -51.97% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Blueprint Medicines Corp has a price-book ratio of 3.88, a EV-to-Ebitda ratio of -3.11 and a price-sales ratio of 12.52.
The price-to-GF Value ratio is 0.38, earning the stock a GF Value rank of 4.
Onto Innovation Inc
The guru sold out of their 286,688-share investment in NYSE:ONTO. Previously, the stock had a 1.03% weight in the equity portfolio. Shares traded for an average price of $73.47 during the quarter.
On 10/25/2022, Onto Innovation Inc traded for a price of $67.3 per share and a market cap of $3.34Bil. The stock has returned -9.79% over the past year.
GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Onto Innovation Inc has a price-earnings ratio of 17.83, a price-book ratio of 2.18, a price-earnings-to-growth (PEG) ratio of 2.07, a EV-to-Ebitda ratio of 10.25 and a price-sales ratio of 3.64.
The price-to-GF Value ratio is 0.80, 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.
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