Royce Investment Partners revealed earlier this week that it had added two holdings.
The New York-based company, which was founded in 1972 by
chuck royce (Trades, Portfolio), specializing in small caps. The portfolio management team selects stocks using an active, bottom-up, risk-conscious and fundamental approach. They also look for value opportunities among companies that are trading at a discount to enterprise value.
According to GuruFocus Real-Time Picks, a premium feature based on 13D, 13G, and Form 4 repositories, the company has increased its Forrester Research Inc. (FORR, financial) of 8.37% and Computer Task Group Inc. (CTM, financial) of 12.62% as of September 30.
Forrester Research
Impacting the equity portfolio by 0.05%, the company increased its stake in Forrester Research (FORR, Financial) by 146,575 shares. The stock traded at an average price of $36.01 per share on the day of the trade.
He now owns a total of 1.89 million shares, or 0.70% of the equity portfolio. GuruFocus estimates that Royce has earned 10.56% on the investment over its lifetime.
The Cambridge, Massachusetts-based market research firm that provides insights into the existing and potential impacts of technology has a market cap of $724.47 million and an enterprise value of $711.43. millions of dollars ; its shares were trading around $38.17 on Thursday with a price-to-earnings ratio of 24.16, a price-to-book ratio of 3.43 and a price-to-sales ratio of 1.40.
The GF value suggests the stock is slightly undervalued based on historical ratios, past financial performance and analysts’ future earnings projections.
The GF score of 89 out of 100 indicates that the company has good outperformance potential. It received high marks for profitability, growth and GF value and medium marks for financial strength and momentum.
Forrester Research released its second quarter results in July. It posted adjusted earnings of $1 per share on revenue of $148.2 million, up from the year-ago quarter.
GuruFocus rated Forrester’s financial strength at 6 out of 10. Despite adequate interest coverage, the Altman Z-Score of 2.45 indicates that it is under some pressure as assets accumulate at a faster rate than income does not increase. The weighted average cost of capital also eclipses the return on investment, which means the company struggles to create value as it grows.
The company’s profitability also performed well with a score of 8 out of 10. Although the operating margin was down, its returns on equity, assets and capital overall outperformed its competitors. Forrester also has a moderate Piotroski F-Score of 6 out of 9, indicating conditions are typical for a stable business. Steady profit and revenue growth contributed to a predictability ranking of 2.5 out of five stars. According to research by GuruFocus, companies in this ranking have an average return of 7.3% per year over a 10-year period.
Royce’s company has the largest stake in Forrester with 10% of its shares outstanding. The title is also held by
Jim Simons (Businesses, Portfolio)’ Renaissance Technologies and
Jeff Auxier (Jobs, Portfolio).
IT working group
With an impact of 0.01% on the stock portfolio, the firm’s Computer Task Group (CTM, Financial) was increased by 175,858 shares. On the day of the trade, the shares traded at an average price of $6.70 each.
Royce Investment now owns 1.56 million shares in total, representing 0.11% of the equity portfolio. Data from GuruFocus shows that it has lost around 50.48% on the investment so far.
The information technology consulting firm, headquartered in Buffalo, New York, has a market capitalization of $110.65 million and an enterprise value of $92.33 million; its shares were trading around $7.13 on Thursday with a price-to-earnings ratio of 7.35, a price-to-book ratio of 1.16 and a price-to-sales ratio of 0.28.
According to the GF Value Line, the stock is currently slightly overvalued.
The company has an average performance potential based on its GF score of 75. While it scored high for profitability, financial strength and momentum, it scored an average for growth and a low score. for the GF value.
Computer Task Group released its second quarter results in August. It posted adjusted earnings of 15 cents per share on $82.76 million in revenue. While profits were up from the year-ago quarter, sales were down.
Computer Task Group’s financial strength has been rated 8 out of 10 by GuruFocus, thanks to ample interest coverage and a high Altman Z-Score of 4.6 which indicates it is in good standing, even if assets are weak. are accumulating at a faster rate than income growth. The ROIC also eclipses the WACC, so value creation occurs.
The company’s profitability was rated 7 out of 10 thanks to operating margin expansion and strong returns ahead of its industry peers. Computer Task Group also has a moderate Piotroski F-Score of 6. Despite declining earnings per share over the past year, it has a one-star predictability ranking. GuruFocus found companies with this rank yield, on average, 1.1% per year.
With a 10.11% stake, Royce’s company is Computer Task Group’s largest guru shareholder. Simons’ company also owns the stock.
Composition and performance of the portfolio
Royce Investment Partners’ $9.71 billion equity portfolio, which according to Filing 13F consisted of 936 stocks at the end of the second quarter, is most heavily invested in the financial services,… industry, technology and cyclical consumption.
The company’s five largest holdings as of June 30 were SEI Investments Co. (CEIU, Financial), Valmont Industries Inc. (VMI, Financial), Vontier Corp. (VNT, Financial), Standard Motor Products Inc. (SMP, Financial) and Vishay Intertechnology Inc. (VSH, Financial).
The Royce Premier Fund returned 16.36% in 2021, underperforming the 28.7% return of the S&P 500 Index and outperforming the 13.69% return of the Russell 2000.
Investors should be aware that 13F filings do not provide a complete picture of a company’s holdings as the reports only include its positions in US stocks and US certificates of deposit, but they can still provide valuable insight. Additionally, the reports only reflect transactions and holdings as of the most recent portfolio deposit date, which may or may not be held by the reporting company today or even when this article was published.