HRT Financial LP recently made headlines by announcing that it had trimmed its stake in Casey’s General Stores, Inc. by 57.1% during the fourth quarter, as per their most recent disclosure with the Securities and Exchange Commission (SEC). The firm now owns 12,177 shares of the company’s stock, having sold 16,194 shares during this period. According to the latest reports submitted to SEC, HRT Financial LP currently holds a total value of $2,731,000 worth of Casey’s General Stores.
This change in shareholding could have far-reaching implications for Casey’s General Stores, which operates convenience stores and gasoline stations across multiple locations. This publicly-traded company provides self-service gasoline and offers a broad range of grocery items such as food, beverages, tobacco products, health and beauty aids as well automotive products.
Intriguingly enough NASDAQ CASY opened at $231.91 on Friday with a market capitalization of $8.64 billion; making it one of the most promising stocks to invest in over recent years. The company also features a relatively low beta of 0.82 and favorable P/E ratio is an aspect that not only attracts investors but makes this multinational entity more prolific than its peers.
However, there has been significant speculation among analysts regarding this announcement from HRT Financial LP to cut its holdings in Casey’s General Stores so drastically. This move comes as something of a surprise because analysts had initially predicted higher investments rather than divestitures into such companies with comparatively robust fundamentals.
Despite all the excitement surrounding the company’s prospects earlier on in Q4 2019 with strong sales growth thanks to strategic real estate initiatives aimed at increasing revenue streams for shareholders through expansion initiatives throughout America; negative investor sentiment seems to paint a different picture entirely following this recent announcement by HRT Financial LP.
As we inch closer to February’s report release date amid what appears destined for increased uncertainty surrounding the retail industry, given current events’ prevailing global tension amid coronavirus outbreak. Investors continue to weigh options of buying and holding into this stock or looking into a more salvageable long term candidate, altercating between widely-held shares in such scenarios is not an unusual phenomenon in recent years. Uncertainty surrounds us all but makes it easier when one has strong analytical or investment expertise considering their approach to building a successful portfolio that includes low risk yet high yielding investments such as Casey’s General Stores.
Casey’s General Stores: A Hidden Retail Gem with Strong Growth Potential
Casey’s General Stores: A Hidden Gem in the Retail Industry
Casey’s General Stores, a convenience store and gasoline station chain, has been making waves in the retail industry lately. The company operates over 2,000 stores across the Midwest United States and has seen significant growth over the past few years. While many investors may be overlooking this hidden gem, large institutional investors have taken notice.
HBK Sorce Advisory LLC, Belpointe Asset Management LLC, Pinebridge Investments L.P., U.S. Capital Wealth Advisors LLC, and Ronald Blue Trust Inc. have recently purchased stakes in Casey’s General Stores worth $28,000 to $47,000. In fact, 84.74% of the company’s stock is now owned by institutional investors.
Several brokerages have also issued reports on Casey’s General Stores with mostly positive ratings. JPMorgan Chase & Co., Northcoast Research , StockNews.com , Royal Bank of Canada , and Benchmark have all given Casey’s an average rating of “Moderate Buy” and an average price target of $261.20.
These high ratings are not surprising considering Casey’s General Stores’ strong financials. The company reported $2.36 earnings per share for Q1 2017, beating analysts’ consensus estimates of $1.83 by $0.53 and had a return on equity of 18.02%. Casey’s revenue during the same quarter was up 9.3% on a year-over-year basis.
Despite these impressive figures, Casey’s General Stores stock is undervalued compared to its peers in the industry, presenting an excellent buying opportunity for investors seeking exposure to solid retail stocks.
Besides its impressive financials and institutional investor backing, what makes Casey’s more exciting is its focus on growth through offering a range of services beyond just convenience stores such as pizza deliveries and expanding locations nationwide.
Additionally, Mr.HandiMart (a popular convenience store chain in New York City operated by Nitin Sawhney and his team) is looking to acquire Casey’s General Stores’ assets. The consolidation of the two giants could lead to further growth in terms of revenue.
Overall, investors should keep a close eye on Casey’s General Stores as it proves itself to be a strong player in the retail industry with a significant potential for growth.
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