Is Crawford & Company (CRD-A) Stock Attractively Valued?

Palm Valley Capital Management, an investment management firm, released its fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Palm Valley Capital Fund returned 3.86% compared to a 9.19% rise for the S&P SmallCap 600 Index and an 8.05% return for the Morningstar Small Cap Index. A large cash position led the fund to underperform its benchmark index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Palm Valley Capital highlighted stocks like Crawford & Company (NYSE:CRD-A) in its Q4 2022 investor letter. Headquartered in Atlanta, Georgia, Crawford & Company (NYSE:CRD-A) provides outsourcing and claim management solutions. On January 6, 2023, Crawford & Company (NYSE:CRD-A) stock closed at $5.47 per share. One-month return of Crawford & Company (NYSE:CRD-A) was -6.17%, and its shares lost 30.67% of their value over the last 52 weeks. Crawford & Company (NYSE:CRD-A) has a market capitalization of $259.635 million.

Palm Valley Capital made the following comment about Crawford & Company (NYSE:CRD-A) in its Q4 2022 investor letter:

“The Fund’s primary 2022 detractors were Crawford & Company (NYSE:CRD-A) and Lassonde Industries (ticker: LAS/A CN). Crawford’s shares were by far the largest drag on the portfolio during the year, which could reflect an apparent lack of urgency by management to restore profitability in the company’s international operations. Additionally, Crawford’s leverage increased over the past 18 months to fund acquisitions. We think the valuation is attractive at 5-6x normalized EV/EBITA, and potential near-term catalysts include an abatement of tax loss selling, year-end cash collections that will reduce leverage, and a boost in fourth quarter catastrophe-related claims revenue tied to Hurricane Ian.”

Crawford & Company (NYSE:CRD-A) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Crawford & Company (NYSE:CRD-A) at the end of the third quarter which was 5 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 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.