David Nierenberg Boosts Stake in Potbelly Corp
David Nierenberg (Trades, Portfolio), the founder and president of Nierenberg Investment Management Company, recently increased his stake in Potbelly Corp (NASDAQ:PBPB). This article will delve into the details of the transaction, provide an overview of Nierenberg's investment philosophy and portfolio, and analyze Potbelly Corp's financial performance and stock market standing.
Transaction Details
On August 8, 2023, Nierenberg added 96,005 shares of Potbelly Corp to his portfolio at a price of $8.75 per share. This transaction increased his total holdings in the company to 2,805,865 shares, representing 18.39% of his portfolio and 9.60% of Potbelly Corp's total shares. The transaction had a 0.63% impact on Nierenberg's portfolio and marked a 3.54% change in his holdings.
This acquisition signifies Nierenberg's confidence in Potbelly Corp's potential for growth and profitability. It also aligns with his investment philosophy of focusing on undervalued, domestic, micro-cap growth companies.
Guru Profile: David Nierenberg (Trades, Portfolio)
David Nierenberg (Trades, Portfolio) is a Yale College and Yale Law School graduate who manages the D3 Family of Funds through his firm, Nierenberg Investment Management Company. He seeks long-term capital gains by investing in a concentrated portfolio of undervalued, domestic, micro-cap growth companies. Nierenberg believes in activism in some circumstances and currently holds 36 stocks in his portfolio, with a total equity of $133 million. His top holdings include Potbelly Corp(NASDAQ:PBPB), Cantaloupe Inc(NASDAQ:CTLP), Mr. Cooper Group Inc(NASDAQ:COOP), EQT Corp(NYSE:EQT), and Fluor Corp(NYSE:FLR). The financial services and industrials sectors dominate his portfolio.
Potbelly Corp Overview
Potbelly Corp (NASDAQ:PBPB) is a US-based company that owns and franchises hundreds of limited-service restaurants specializing in sandwiches, salads, and shakes. The company, which went public on October 4, 2013, has a market capitalization of $253.011 million. Despite a PE percentage of 20.55, Potbelly Corp is considered modestly overvalued with a GF Value of 7.17 and a price to GF Value of 1.21. The company's stock has declined by 1.37% since the transaction and by 69.89% since its IPO. However, it has gained 56.91% year-to-date.
Potbelly Corp's financial strength and profitability are ranked 4/10 and 5/10 respectively. The company's GF Score is 56/100, indicating poor future performance potential. Its balance sheet rank is 4/10, while its profitability rank is 5/10. The company's growth rank is 2/10, and its GF Value Rank is 1/10. Potbelly Corp's momentum rank is 6/10, and its Piotroski F-Score is 8, indicating a healthy situation.
Comparison with Other Gurus
Other gurus, such as Jefferies Group (Trades, Portfolio), also hold shares in Potbelly Corp. However, the largest guru holder of Potbelly Corp is First Eagle Investment (Trades, Portfolio) Management, LLC. The comparison of Nierenberg's position in Potbelly Corp with that of the largest guru holder provides valuable insights into different investment strategies and market perspectives.
Conclusion
In conclusion, David Nierenberg (Trades, Portfolio)'s recent acquisition of Potbelly Corp shares underscores his investment strategy of targeting undervalued, domestic, micro-cap growth companies. Despite Potbelly Corp's modest overvaluation and poor future performance potential, Nierenberg's increased stake in the company suggests his confidence in its long-term growth prospects. This transaction offers valuable insights for value investors and highlights the importance of thorough market analysis and strategic investment decisions.
This article first appeared on GuruFocus.
