Vulcan Value Partners LLC has significantly increased its stake in Littelfuse, Inc. (NASDAQ:LFUS), a notable move that underscores the investment firm’s confidence in the technology company.
This strategic decision, revealed in their recent Form 13F filing with the SEC, saw their holdings expand by a substantial 13.7% during the first quarter.
Specifically, Vulcan Value Partners acquired an additional 27,462 shares, bringing their total ownership in Littelfuse to 227,555 shares. This substantial investment now represents approximately 0.8% of Vulcan Value Partners LLC’s entire portfolio, positioning NASDAQ LFUS as its 24th largest holding, valued at $44,769,000 by the close of the most recent reporting period.
Beyond Vulcan Value Partners, several other institutional investors have also adjusted their positions in Littelfuse. First Horizon Advisors Inc. dramatically boosted its stake by 228.2%, acquiring 89 additional shares. Similarly, Fifth Third Bancorp, Parallel Advisors LLC, Global X Japan Co. Ltd., and Bayforest Capital Ltd all increased their holdings, demonstrating a broader pattern of growing institutional interest in the stock market performance of Littelfuse. Currently, hedge funds and other institutional investors collectively own 96.14% of the company’s stock.
Analyst sentiment surrounding Littelfuse shares has been mixed but generally positive. While Baird R W recently downgraded the stock from a “strong-buy” to a “hold,” Benchmark reaffirmed its “hold” rating. Conversely, Oppenheimer adjusted its price objective to $275.00 with an “outperform” rating, and Robert W. Baird increased its target to $194.00, maintaining a “neutral” stance. The consensus among four investment analysts is a “hold” rating, with three issuing a “buy,” leading to an average target price of $252.25.
From a financial perspective, Littelfuse, Inc. opened at $257.33 and has shown resilience, trading within a 12-month range of $142.10 to $275.56. The company’s corporate finance health is reflected in its strong current ratio of 4.06 and a quick ratio of 2.75, alongside a manageable debt-to-equity ratio of 0.30. With a market capitalization of $6.36 billion, the stock currently trades at a PE ratio of 53.61 and a P/E/G ratio of 2.37, indicating its valuation within the market.
Littelfuse’s latest quarterly earnings, reported on July 30th, showcased strong performance. The technology company exceeded expectations, reporting earnings per share (EPS) of $2.85 against a consensus estimate of $2.35. Revenue for the quarter also surpassed analyst predictions, reaching $613.41 million, marking a 9.8% increase compared to the previous year and highlighting robust operational growth. This strong showing contributes to the ongoing financial news narrative around the company.
In positive news for shareholders, Littelfuse recently announced a quarterly dividend news increase. Investors of record by August 21st are set to receive a $0.75 dividend per share, an uptick from the previous $0.70. This adjustment translates to an annualized dividend of $3.00, offering a yield of 1.2% and reflecting the company’s commitment to returning value to its investors, with a dividend payout ratio of 64.81%.
However, recent SEC filings also indicate some insider activity. A Senior Vice President sold 1,477 shares of company stock on May 5th at an average price of $197.50, totaling $291,707.50. This transaction reduced the SVP’s holdings by 19.82%, though company insiders still retain 2.50% ownership of the stock. Such insider trades are often closely watched as indicators of internal sentiment.
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