Colorado-based investment firm, ArrowMark Colorado Holdings LLC, recently reduced its stake in Heritage-Crystal Clean, Inc (NASDAQ:HCCI) by 24.2% during the first quarter of this year. According to the company’s disclosure with the Securities and Exchange Commission (SEC), it sold 336,935 shares of the industrial products company’s stock, leaving it with a total of 1,056,114 shares. At the end of this reporting period, ArrowMark Colorado Holdings LLC owned approximately 4.34% of Heritage-Crystal Clean, valued at $37,608,000.
This significant reduction in stake raises questions about ArrowMark’s confidence in Heritage-Crystal Clean’s future prospects. Investors often monitor such moves by institutional investors as they can provide insight into a company’s performance and growth potential.
Heritage-Crystal Clean recently released its earnings results for the quarter ending on August 9th. The company reported an EPS (earnings per share) of $0.36 for the period, falling short of analysts’ expectations by ($0.19). This discrepancy highlights some challenges that Heritage-Crystal Clean may be facing in terms of meeting market projections.
Despite the earnings miss, Heritage-Crystal Clean did demonstrate a return on equity of 15.63% and a net margin of 9.51%. The company’s revenue for the quarter stood at $192.17 million, slightly below market estimates of $195.22 million.
Looking ahead to the rest of the year, research analysts anticipate that Heritage-Crystal Clean will post an earnings per share figure of 2.46 for the current fiscal year.
Heritage-Crystal Clean operates primarily through its subsidiary, Heritage-Crystal Clean LLC. The company offers part cleaning services as well as collection services for both hazardous and non-hazardous waste materials and used oil from small and mid-sized customers in the industrial and vehicle maintenance sectors. With a focus on the North American market, the company operates across two segments: Environmental Services and Oil Business.
In summary, ArrowMark Colorado Holdings LLC has significantly reduced its stake in Heritage-Crystal Clean, Inc during the first quarter of this year. The company’s recent earnings report showed a lower than expected EPS figure, indicating potential challenges in meeting market forecasts. However, with its diverse range of environmental services and oil business offerings, Heritage-Crystal Clean continues to serve customers in North America’s industrial and vehicle maintenance sectors. Investors will be watching closely to see how the company performs in the remainder of the year.
Heritage-Crystal Clean, Inc
HCCI
Buy
Updated on: 05/12/2023
Financial Health
Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Heritage-Crystal Clean Sees Changes in Investor Stakes and Analyst Opinions
September 12, 2023 – Heritage-Crystal Clean (NASDAQ:HCCI), an industrial products company, has recently caught the attention of investors due to changes in their stakes. Notably, Citigroup Inc. raised its stake in Heritage-Crystal Clean by a significant 59.0% during the first quarter. The investment bank now owns 790 shares of the company’s stock, amounting to approximately $28,000 after acquiring an additional 293 shares in the last quarter.
Another investor that increased its position in Heritage-Crystal Clean is Legal & General Group Plc, which saw a 6.2% increase during the fourth quarter. The group now holds 5,893 shares of the company’s stock worth $191,000 after acquiring an additional 342 shares during this period.
Additionally, Two Sigma Investments LP increased its position by 0.6%, amassing a total of 70,414 shares valued at $2,082,000 during the third quarter. Victory Capital Management Inc., on the other hand, acquired an additional 473 shares during the same period and now owns a total of 50,962 shares worth $1,710,000.
Rhumbline Advisers also participated in increasing their stake by purchasing an additional 482 shares during the first quarter. They currently own 28,417 shares valued at $1,012,000 as a result.
Interestingly enough, institutional investors and hedge funds collectively hold a sizable portion (61.96%) of Heritage-Crystal Clean’s stock.
On September 12th this year Nasdaq opened with Heritage-Crystal Clean trading at $45.18 per share. Over a span of 50 days leading up to this date, the firm’s simple moving average stood at $44.41 while its average for the past year reached $38.42 for comparison purposes.
The company has showcased stability with regards to its financials. Heritage-Crystal Clean has a debt-to-equity ratio of 0.19, reflecting a well-maintained balance in terms of funding structure. Their current and quick ratios stand at 1.86 and 1.42 respectively, indicating a healthy liquidity position.
Over the past year, the company experienced trading lows of $25.70 and highs of $47.98, displaying notable volatility in the market but maintaining an upward trajectory within this price range.
As for market capitalization, Heritage-Crystal Clean currently stands at $1.10 billion with a price-earnings (PE) ratio of 14.12 and a beta value of 1.25.
In light of this recent activity surrounding Heritage-Crystal Clean’s stock, various equities analysts have chimed in to provide insights about the company’s performance. Roth Capital downgraded their rating from “buy” to “neutral” on August 29th, while Needham & Company LLC reiterated their “hold” rating for the company’s shares on July 20th.
Another prominent analyst firm, Robert W. Baird, lowered their rating for Heritage-Crystal Clean from an “outperform” to a “neutral” on August 24th. However, StockNews.com took an optimistic stance by issuing a “buy” rating for the stock.
Based on aggregated data from Bloomberg.com, it is apparent that sentiment surrounding Heritage-Crystal Clean is varied but leans towards positivity. The average rating is categorized as “Moderate Buy,” with analysts pinning a consensus target price at approximately $44.29 per share.
View Our Latest Stock Analysis on Heritage-Crystal Clean
In conclusion, Heritage-Crystal Clean has witnessed significant changes in its stakes held by several large investors. These developments have attracted interest from both institutional investors and hedge funds who actively participate in trading their shares.
Despite varying analyst opinions, Heritage-Crystal Clean remains a stock worth considering due to its financial stability, liquidity position, and past performance. Investors should carefully evaluate the company’s outlook and conduct thorough research before making any investment decisions.
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