Here’s What Drove Matrix Service Company (MTRX) Stock
Long Cast Advisers, LLC, a small-cap-focused investment manager, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The cumulative net returns of the fund for Q2 2023 were flat and year-to-date the fund’s return was 11%. The fund has returned a cumulative 166% net of fees, or 14% CAGR since inception in November 2015 through quarter end 2Q23. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Long Cast Advisers highlighted stocks like Matrix Service Company (NASDAQ:MTRX) in the second quarter 2023 investor letter. Headquartered in Tulsa, Oklahoma, Matrix Service Company (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services. On September 25, 2023, Matrix Service Company (NASDAQ:MTRX) stock closed at $10.69 per share. One-month return of Matrix Service Company (NASDAQ:MTRX) was 30.05%, and its shares gained 208.96% of their value over the last 52 weeks. Matrix Service Company (NASDAQ:MTRX) has a market capitalization of $290.873 million.
Long Cast Advisers made the following comment about Matrix Service Company (NASDAQ:MTRX) in its Q2 2023 investor letter:
"Matrix Service Company (NASDAQ:MTRX). There is a saying for many cyclical businesses like this to “buy in the order cycles and sell into the delivery cycle.” It’s a pithy way of saying this is still an opportune time to buy MTRX.
The company is on a June 30 fiscal year and recently reported 4Q23 / year end earnings, which included $460M in new orders, the highest bookings quarter since 2018 by my count, with expectations that 1Q24 would also exceed $400M in new awards. Furthermore, on the earnings call, management indicated that profitability would like return in F2H24, following the cadence of awards >> revenue >> gross margins that one normally sees in the construction industry. The positive market reaction to these awards has driven recent gains in our accounts. I think there’s more to come; management would not need to be heroic to see FY25 EPS in the range of $1.50."
Matrix Service Company (NASDAQ:MTRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Matrix Service Company (NASDAQ:MTRX) at the end of second quarter which was 20 in the previous quarter.
We discussed Matrix Service Company (NASDAQ:MTRX) in another article and shared Long Cast Advisers’ views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
