VCA Inc (WOOF): Larry Robbins’ Glenview Capital Bets on Veterinary Services, Increases Stake by 45%

Larry Robbins’ Glenview Capital recently disclosed a marked increase in its stake in VCA Inc (NASDAQ:WOOF), a $3.4 billion market cap provider of veterinary services and diagnostic testing, testing equipment, and other medical technology products and related services. The addition of 4 million shares to the fund’s equity portfolio imply a 45% increase in its stake in the company.

The fund now owns approximately 12.8 million shares of VCA Inc (NASDAQ:WOOF)’s Common Stock, which account for almost 15% of the company’s outstanding shares. The position has a current market value of more than half a billion dollars – considering that the stock currently trades around $39.60 per share. This share price implies a valuation at 24.4 times the company’s earnings, well below the 36x-37x P/E industry average. In addition, the company boasts industry-leading margins and returns, while its debt levels stand substantially below its peers’.

GLENVIEW CAPITAL

Mr. Robbins is probably betting on growth, as both the company and its wider industry are are being subject of consistent earnings estimates revisions activity. EPS estimates for the current quarter and current year have gone up, and now stand at $0.52 (up from $0.51 previously) for the current quarter, and $2.04 for the current year (up from $2.01).

Allthough Mr. Robbins’ fund is the largest hedge fund investor of record in VCA Inc (NASDAQ:WOOF), it is not the only bull. Ricky Sandler’s Eminence Capital boosted its exposure by 7% over the second quarter of the year, and now owns 5.19 million shares, worth more than $182 million. D E Shaw upped its bet by the same percentage, last disclosing ownership of 1.28 million shares. Meanwhile, Daniel S. Och’s OZ Management added 63% to its holdings at the company over the second quarter, and now owns more than 2.85 million shares of Common Stock.

I should highlight that VCA Inc (NASDAQ:WOOF) is amongst those stocks that have helped Mr. Robbins return 18% in the first half of the year, as its price escalated almost 12% over the period. Year-to-date, the stock is up 26.4%.

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!