Michael Thompson‘s BHR Capital has upped its stake in Hornbeck Offshore Services, Inc.(NYSE:HOS). A recent 13G filing with the SEC shows that the fund now owns 2.40 million shares – 6.65% of the company’s outstanding common stock. Previously, BHR held around 1.58 million shares of Hornbeck Offshore.
Founded in 1980 by Larry Hornbeck, Hornbeck Offshore Services, Inc. is a company which operates offshore supply vessels, multi-purpose support vessels, and a shore-base facility to provide marine transportation services to exploration and production, oilfield service, offshore construction and military customers. Due to substantial pending growth of the company’s upstream fleet as a result of retrofit and newbuild programs, the company completed the sale of its Downstream segment to Genesis Marine, LLC, an affiliate of Genesis Energy, L.P. (NYSE:GEL) for $230.00 million.
In 2013, Hornbeck generated profits of $64.00 million or $2.04 per share, 73% more than a year earlier. Currently, the company trades at around $37.82 per share – almost the bottom of its 52 week price range, and has a P/E of approximately 21.00, compared to the ratio of 17.50 for the industry. The company is expected to produce earnings of over $3.10 per share this year and $4.80 per share in 2015. Analysts provide an average target price of $56.60 for Hornbeck Offshore’s stock, the mean consensus recommendation being ‘Overweight.’
Debra Fine‘s Fine Capital Partners is large shareholder at Hornbeck Offshore Services, Inc., owning some 2.07 million shares of the company, as of the end of 2013. Another fund which holds a significant position of 1.65 million shares is William B. Gray‘s Orbis Investment Management.
Michael Thompson manages an equity portfolio worth more than $1.20 billion. Half of that value is invested in the Services Sector and a third in the Financials. Holding 5.52 million shares, the fund is considerably exposed to New Residential Investment Corp (NYSE:NRZ), which represents 3.05% of BHR Capital’s equity portfolio
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