Hodges Capital Management Inc. recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
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.
Hodges Capital Management Inc. is an investment management firm based out of Dallas, Texas. The company was originally established in 1989 by Craig Donaldson Hodges, who is still with the company today acting as its CEO, CIO, and Chairman. Hodges Capital Management conducts its research internally and utilizes a fundamental methodology to make its investment decisions, allocating its assets in the public equity markets within the United States. The company invests most heavily in the consumer discretionary sector, which alone makes up over a quarter of Hodges Capital Management’s total asset allocations, and also invests in the industrials, health care, finance, information technology, materials, energy, transports, and consumer staples sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company holds its allocations an average of 10.7 quarters and, in the most recent quarter, had a turnover rate of approximately 25.5%. Hodges Capital Management now operates with 26 employees of which 12 are investment professionals. The company oversees $2.9 billion in total assets under managements spread across 429 total accounts, all of which are discretionary accounts. Although Hodges Capital Management’s total number of accounts has been decreasing in recent years, once having been as high as 530, its total assets under management has grown significantly, increasing from just over $500 million back in 2010 to well over five times that amount today. The company mainly caters to individuals and high net worth individuals, which each make up over a third of its entire client base, and also provides services to charities, pension and profit sharing plans, investment companies, and corporations and other businesses, in order of decreasing clientele. Hodges Capital Management offers a variety of mutual funds including its Hodges Fund, Small Cap, Small Intrinsic Vlaue, Small-Mid Cap, Pure Contrarian, and Blue Chip Equity Income funds.
As of the latest 13F report, the guru’s equity portfolio contained 215 stocks valued at a total of $1.15Bil. The top holdings were TPL(5.74%), MTDR(4.15%), and WIRE(3.25%).
According to GuruFocus data, these were Hodges Capital Management Inc.’s top five trades of the quarter.
Matador Resources Co
During the quarter, Hodges Capital Management Inc. bought 379,645 shares of NYSE:MTDR for a total holding of 835,876. The trade had a 1.88% impact on the equity portfolio. During the quarter, the stock traded for an average price of $63.09.
On 02/04/2023, Matador Resources Co traded for a price of $62.17 per share and a market cap of $7.35Bil. The stock has returned 37.35% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Matador Resources Co has a price-earnings ratio of 6.33, a price-book ratio of 2.57, a EV-to-Ebitda ratio of 3.80 and a price-sales ratio of 2.54.
The price-to-GF Value ratio is 0.89, earning the stock a GF Value rank of 6.
Eagle Materials Inc
During the quarter, Hodges Capital Management Inc. bought 121,277 shares of NYSE:EXP for a total holding of 244,272. The trade had a 1.4% impact on the equity portfolio. During the quarter, the stock traded for an average price of $126.33.
On 02/04/2023, Eagle Materials Inc traded for a price of $148.64 per share and a market cap of $5.36Bil. The stock has returned 4.26% 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, Eagle Materials Inc has a price-earnings ratio of 12.85, a price-book ratio of 4.62, a price-earnings-to-growth (PEG) ratio of 0.91, a EV-to-Ebitda ratio of 8.97 and a price-sales ratio of 2.68.
The price-to-GF Value ratio is 0.94, earning the stock a GF Value rank of 7.
Cleveland-Cliffs Inc
During the quarter, Hodges Capital Management Inc. bought 918,513 shares of NYSE:CLF for a total holding of 2,019,445. The trade had a 1.28% impact on the equity portfolio. During the quarter, the stock traded for an average price of $15.06.
On 02/04/2023, Cleveland-Cliffs Inc traded for a price of $21.6 per share and a market cap of $11.13Bil. The stock has returned 15.09% 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, Cleveland-Cliffs Inc has a price-earnings ratio of 4.69, a price-book ratio of 1.59, a price-earnings-to-growth (PEG) ratio of 0.23, a EV-to-Ebitda ratio of 3.54 and a price-sales ratio of 0.51.
The price-to-GF Value ratio is 0.60, earning the stock a GF Value rank of 8.
On Holding AG
During the quarter, Hodges Capital Management Inc. bought 833,935 shares of NYSE:ONON for a total holding of 1,274,503. The trade had a 1.24% impact on the equity portfolio. During the quarter, the stock traded for an average price of $17.49.
On 02/04/2023, On Holding AG traded for a price of $22.89 per share and a market cap of $7.23Bil. The stock has returned -15.06% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 2 out of 10.
In terms of valuation, On Holding AG has a price-book ratio of 7.34, a EV-to-Ebitda ratio of -150.46 and a price-sales ratio of 7.66.
Texas Pacific Land Corp
During the quarter, Hodges Capital Management Inc. bought 5,929 shares of NYSE:TPL for a total holding of 28,265. The trade had a 1.2% impact on the equity portfolio. During the quarter, the stock traded for an average price of $2385.38.
On 02/04/2023, Texas Pacific Land Corp traded for a price of $2009.34 per share and a market cap of $15.48Bil. The stock has returned 84.48% over the past year.
GuruFocus gives the company a financial strength rating of 10 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, Texas Pacific Land Corp has a price-earnings ratio of 36.51, a price-book ratio of 21.48, a price-earnings-to-growth (PEG) ratio of 0.99, a EV-to-Ebitda ratio of 24.92 and a price-sales ratio of 23.48.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 5.
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.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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