Here’s Why Crawford & Company (CRD-A) Shares Sold Off after a Strong Quarter
Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Palm Valley Capital Fund increased 0.56% compared to a 4.93% and 4.56% decline for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. The fund’s equity securities lost 0.78% during the same period, before the negative impact of fund expenses and the positive effect of interest income. Also, the fund ended the period with 81% held in cash equivalents. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Palm Valley Capital Management highlighted stocks like Crawford & Company (NYSE:CRD-A) in the third quarter 2023 investor letter. Headquartered in Atlanta, Georgia, Crawford & Company (NYSE:CRD-A) is a claims management and outsourcing solutions provider. On October 5, 2023, Crawford & Company (NYSE:CRD-A) stock closed at $9.14 per share. One-month return of Crawford & Company (NYSE:CRD-A) was -12.37%, and its shares gained 49.35% of their value over the last 52 weeks. Crawford & Company (NYSE:CRD-A) has a market capitalization of $432.545 million.
Palm Valley Capital Management made the following comment about Crawford & Company (NYSE:CRD-A) in its Q3 2023 investor letter:
During the third quarter, the Fund had three positions that detracted from performance by more than 10 basis points: Crawford & Company (NYSE:CRD-A), Advance Auto Parts (ticker: AAP), and TrueBlue (ticker: TBI). Crawford reported solid second quarter results that benefited from a high level of catastrophe activity from insurers. Operating profit before amortization jumped 86%, and the firm’s trailing profitability is now in line with our normalized assumptions. This reflects a period of above-average catastrophe claims offset by weak 2022 performance in Crawford’s International segment. The company’s stock had a strong run for much of this year, and we believe the selloff this quarter was probably due to investors trying to game the likelihood of a major hurricane boosting results.
An insurance adjuster reviewing images and paperwork to process a claim. Editorial photo for a financial news article. 8k. --ar 16:9
Crawford & Company (NYSE:CRD-A) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Crawford & Company (NYSE:CRD-A) at the end of second quarter which was 6 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.
