Wallace R. Weitz & Co. Increases Holding of XO Group Inc (XOXO)

Wallace Weitz is optimistic about the prospects of XO Group Inc (NYSE:XOXO) and has increased his fund’s holding of the stock. In a recently amended filing with the Securities and Exchange Commission, Wallace R. Weitz & Co. has disclosed an increase from 2.65 million to 2.80 million shares, which account for 10.44% of the company’s common shares. This is the second time this year that Weitz increases his position in XO Group, after adding approximately 30,000 shares in January.

Hedge fund guru Jim Simons is also bullish on XO Group Inc (NYSE:XOXO). His fund, Renaissance Technologies, has reported an 30% increase in its holding for the fourth quarter of 2013 to 648,300 shares valued at $9.63 million. David E. Shaw is also optimistic and has increased his fund’s stake by 15%. In its latest 13F filing, D E Shaw has reported ownership of approximately 268,700 shares worth about $4 million. John W. Rogers, has, on the other hand, decided to reduce his fund’s investment during the same period to 1.11 million shares valued at $16.6 million.

A consumer internet and media company, XO Group Inc (NYSE:XOXO) has a market cap of $275 million and does not pay a dividend. The stock is traded at a trailing Price to Earnings (P/E) ratio of 44.xx, significantly higher than the industry average of 28.70. So far in 2014 the stock has fallen 31% to a current price of $10.23 per share. For the 2013 fourth quarter, XO Group has posted revenues of $32.6 million and earnings per share of $0.02, missing expectations. Analysts predict revenues of $31 million and EPS of $0.01 for Q1 of 2014. The stock is touted mainly as a Hold.

Wallace Weitz has increased his fund’s stakes Redwood Trust, Inc. (NYSE:RWT) and Intelligent Systems Corporation (NYSEMKT:INS) earlier this year. Wallace R. Weitz & Co. currently holds 6.12 million Redwood Trust shares, which account for 7.73% of the company’s common stock, and 2.27 million shares of Intelligent Systems or a quarter of the total number of shares outstanding.

Disclosure: none.

Recommended reading:

Wallace R. Weitz & Co. Upps its Stakes in XO Group Inc (XOXO), Redwood Trust, Inc. (RWT), and Intelligent Systems Corporation (INS)

Wallace R. Weitz Top Picks: Liberty Global plc (LBTYA), Berkshire Hathaway Inc. (BRK.B) & Others

Becker Drapkin Management Further Reduces Holding in Pacer International, Inc. (PACR) to Under 2%