Here’s Why International Game Technology (IGT) Landed on Weitz Investment’s Detractor List

Palm Harbour Capital, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. The fund lost 2.5% in gross fees at the end of the recent quarter. The fund ended the quarter with a year-to-date performance of -11.4% (-12.5% on a NAV basis on 29 September 2022). Inception to quarter-end return was 23.5% or 6.25% compounded annual return. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Palm Harbour Capital mentioned International Game Technology PLC (NYSE:IGT) and explained its insights for the company. Founded in 1990, International Game Technology PLC (NYSE:IGT) is a London, United Kingdom-based multinational gambling company with a $4.8 billion market capitalization. International Game Technology PLC (NYSE:IGT) delivered a -16.15% return since the beginning of the year, while its 12-month returns are down by -10.29%. The stock closed at $24.24 per share on November 29, 2022.

Here is what Palm Harbour Capital has to say about International Game Technology PLC (NYSE:IGT) in its Q3 2022 investor letter:

“The fifth largest detractor was International Game Technology, a world leading operator of lotteries and gaming machines, which we introduced in our first quarter 2020 letter. The share price decreased by 8.3% losing 36 basis points for the fund. Management tightened full year guidance to reflect currency movements and reconfirmed operating income margin as fundamentals remain strong.

IGT also announced a $270 million settlement related to Double Down Interactive which was higher than the $150 million which company set aside during the second quarter 2022. Despite foreign exchange headwinds from the weaker euro, we are optimistic that they will continue to delever and pay higher shareholder remuneration in the coming quarters as we believe the lottery business will remain robust even factoring in a recession.”

Our calculations show that International Game Technology PLC (NYSE:IGT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. International Game Technology PLC (NYSE:IGT) was in 29 hedge fund portfolios at the end of the second quarter of 2022, compared to 34 funds in the previous quarter. International Game Technology PLC (NYSE:IGT) delivered a 32.60% return in the past 3 months.

In November 2022, we also shared another hedge fund’s views on International Game Technology PLC (NYSE:IGT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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Disclosure: None. This article is originally published at Insider Monkey.