Here’s Why American Axle (AXL) Detracted in Q3
Miller Value Partners, an investment management company, released its “Deep Value Select Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Strategy returned +15.50% net-of-fees ahead of the S&P 1500 Value Index -4.20% return. Year to date through September 30, 2023, the fund returned +8.56% (net of fees) compared to +6.98% return for the index. Most of the strategy’s investments participated in the stronger quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Deep Value Strategy highlighted stocks like American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) in the third quarter 2023 investor letter. Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) designs, engineers, and manufactures driveline and metal forming technologies. On October 17, 2023, American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) stock closed at $7.31 per share. One-month return of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) was 1.39%, and its shares lost 4.82% of their value over the last 52 weeks. American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) has a market capitalization of $855.694 million.
Miller Value Deep Value Strategy made the following comment about American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) in its Q3 2023 investor letter:
"The two largest detractors were American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) and Gray Television (GTN), with share prices down 12% and 11% during the quarter. Both company’s shares appear significantly mispriced, providing long-term upside potential multiples of their current share price.
American Axle (AXL) is being adversely impacted by the UAW’s recently announced strike against the “Big Three” domestic car manufacturers. While the strike will create near-term headwinds for the auto industry, we continue to believe that the long-term supply/demand fundamentals remain favorable. A longer strike may further reduce dealer inventory below historical average levels and lead to an even greater industry shipment recovery cycle. The marketplace also appears to be underappreciating American Axle’s new product innovation as the company is expecting at least $2 to $3B in incremental sales related to electric vehicles over the next 5 to 7 years. American Axle remains very attractive at a >40% normalized free cash flow yield."
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American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) at the end of second quarter which was 17 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
