4. Holley Inc. (NYSE:HLLY)
Number of Hedge Fund Holders: 19
Market Cap as of May 25: $1.15 billion
Holley Inc. (NYSE:HLLY) operates as an automotive performance firm. On May 12, the firm posted earnings for the first quarter of 2022, reporting earnings per share of $0.19, beating analysts’ expectations by $0.04. The revenue over the period was $200 million, up over 24% year-on-year and beating market expectations by $7.4 million. Tom Tomlinson, the CEO of the firm, revealed during the earnings call that organic sales had increased by $21.6 million in the period.
On March 4, Jefferies analyst Anna Glaessgen assumed coverage of Holley Inc. (NYSE:HLLY) stock with a Buy rating and a price target of $20, noting that the quarterly results of the firm showed demand for the product sales.
At the end of the first quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $130 million in Holley Inc. (NYSE:HLLY), up from 17 in the preceding quarter worth $110 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm P2 Capital Partners is a leading shareholder in Holley Inc. (NYSE:HLLY), with 3.6 million shares worth more than $50 million.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Holley Inc. (NYSE:HLLY) was one of them. Here is what the fund said:
“During the quarter, we added to our position in Holley Inc. (NYSE:HLLY), which traces its roots back to 1903, but recently came public via a SPAC merger with Empower Ltd. Holley is a leading designer, marketer, and manufacturer of high-performance automotive aftermarket products for car and truck enthusiasts, selling 60 iconic brands across many categories and car models. They are the market leader in the space with around $600 million in sales, #1 or #2 market positions in all their major categories (i.e., electronic fuel injection, carburetors), and 3 times the size of their closest competitor. These scale benefits enable Holley Inc. (NYSE:HLLY) to outspend on R&D to continuously innovate with unmatched go-to market capabilities to drive above industry growth. Holley’s Direct-To-Consumer strategy is a core focus, engaging its loyal customer base and transforming the sector with a consumer-first approach driven by innovation (approximately 40% of sales from products introduced in the last five years).
Since 2001, Holley’s core market has grown at a 6.5% CAGR as more than 50 million Americans see their vehicle as more than a means of transportation, 15 million of whom are considered avid enthusiasts. These enthusiasts spend a great deal of time (on average, more than 10 hours per week) and money pursuing their vision of a perfect vehicle, often leading to heightened levels of repeat spending. (Click here to read full text)
