Is Vintage Wine Estates (VWE) an Undervalued Stock?
Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Fund” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund’s Investor Class fell -3.87%, compared to -0.48% return for the Russell Microcap Index. However, industrials and information technology holdings strengthened the fund’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Wasatch Global Investors highlighted stocks like Vintage Wine Estates, Inc. (NASDAQ:VWE) in the Q3 2022 investor letter. Headquartered in Incline Village, Nevada, Vintage Wine Estates, Inc. (NASDAQ:VWE) is a wine and craft, spirit producer. On January 3, 2023, Vintage Wine Estates, Inc. (NASDAQ:VWE) stock closed at $3.2000 per share. One-month return of Vintage Wine Estates, Inc. (NASDAQ:VWE) was -10.86%, and its shares lost 73.49% of their value over the last 52 weeks. Vintage Wine Estates, Inc. (NASDAQ:VWE) has a market capitalization of $197.412 million.
Wasatch Global Investors made the following comment about Vintage Wine Estates, Inc. (NASDAQ:VWE) in its Q3 2022 investor letter:
"Vintage Wine Estates, Inc. (NASDAQ:VWE) was also a significant detractor. A rapidly growing producer of wine with an industry-leading direct-to-consumer platform, the company operates wineries in California and the Pacific Northwest. Vintage Wine Estates experienced growing pains during its first year as a public company. On the positive side, the firm’s new chief financial officer has undertaken a series of initiatives designed to improve and strengthen inventory management, processes and reporting. However, these efforts resulted in a large non-cash charge to inventory that hurt the bottom line in the most recently completed fiscal quarter. Investors reacted negatively to the news, sending the stock price lower. We had been reducing our investment in Vintage Wine Estates prior to mid-September because of indications that the wine category was slowing combined with the company’s debt levels. However, with the stock now resetting to levels below the value of its assets, we’re holding our current position."
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Vintage Wine Estates, Inc. (NASDAQ:VWE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Vintage Wine Estates, Inc. (NASDAQ:VWE) at the end of the third quarter, which was 10 in the previous quarter.
We discussed Vintage Wine Estates, Inc. (NASDAQ:VWE) in another article and shared the best wine stocks to buy heading into 2023. In addition, please check out our hedge fund investor letters Q3 2022 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.
