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Here’s Why Palm Valley Capital Disposed its Heartland Express (HTLD) Position

Palm Valley Capital Management, an investment management firm, released its fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Palm Valley Capital Fund returned 3.86% compared to a 9.19% rise for the S&P SmallCap 600 Index and an 8.05% return for the Morningstar Small Cap Index. A large cash position led the fund to underperform its benchmark index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In its Q3 2022 investor letter, Palm Valley Capital Management mentioned Heartland Express, Inc. (NASDAQ:HTLD) and explained its insights for the company. Founded in 1978, Heartland Express, Inc. (NASDAQ:HTLD) is a North Liberty, Iowa-based short-to-medium-haul truckload carrier with a $1.3 billion market capitalization. Heartland Express, Inc. (NASDAQ:HTLD) delivered a 8.74% return since the beginning of the year, while its 12-month returns are up by 3.35%. The stock closed at $16.68 per share on January 20, 2023.

Here is what Palm Valley Capital Management has to say about Heartland Express, Inc. (NASDAQ:HTLD) in its Q3 2022 investor letter:

"We did not purchase any new holdings during the fourth quarter. We sold three positions entirely, which includes Heartland Express, Inc. (NASDAQ:HTLD). Heartland Express, Inc. (NASDAQ:HTLD) took on leverage for an acquisition, which increased the company’s financial risk."

dividend champions 2021
dividend champions 2021


Our calculations show that Heartland Express, Inc. (NASDAQ:HTLD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Heartland Express, Inc. (NASDAQ:HTLD) was in 9 hedge fund portfolios at the end of the second quarter of 2022, compared to 13 funds in the previous quarter. Heartland Express, Inc. (NASDAQ:HTLD) delivered a 14.01% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Heartland Express, Inc. (NASDAQ:HTLD) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.


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Disclosure: None. This article is originally published at Insider Monkey.