Here’s Why Owens & Minor (OMI) is Declining

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 0.70% compared to a -0.66% return for the Russell 2000 Value Index. The firm expects the fund to outperform in down markets and trail in speculative markets.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

FPA Queens Road Small Cap Value Fund highlighted stocks like Owens & Minor, Inc. (NYSE:OMI) in the first quarter 2023 investor letter. Headquartered in Richmond, Virginia, Owens & Minor, Inc. (NYSE:OMI) is a healthcare solutions company. On May 3, 2023, Owens & Minor, Inc. (NYSE:OMI) stock closed at $14.12 per share. One-month return of Owens & Minor, Inc. (NYSE:OMI) was -4.85%, and its shares lost 62.79% of their value over the last 52 weeks. Owens & Minor, Inc. (NYSE:OMI) has a market capitalization of $1.093 billion.

FPA Queens Road Small Cap Value Fund made the following comment about Owens & Minor, Inc. (NYSE:OMI) in its Q1 2023 investor letter:

“Owens & Minor, Inc. (NYSE:OMI) makes and distributes medical and surgical supplies including masks, gowns and gloves (the Halyard Health S&IP business acquired in 2018). They over earned and paid down debt during COVID but re-levered up to acquire Apria, a manufacturer of home health equipment at the beginning of 2022.16 Results have been coming in weaker and third and fourth quarter 2022 were misses.17 The market is currently penalizing companies with deteriorating fundamentals and higher loads.”

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Owens & Minor, Inc. (NYSE:OMI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Owens & Minor, Inc. (NYSE:OMI) at the end of the fourth quarter which was 15 in the previous quarter.

We discussed Owens & Minor, Inc. (NYSE:OMI) in another article and shared FPA Queens Road Small Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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