Is Farmer Bros. Co. (FARM) an Undervalued Stock?

Choice Equities Capital Management, a hedge fund manager, released its third-quarter investor letter recently. You can view it here. In the third quarter, the fund returned -1.7% on a net basis compared to -2.2% loss for the Russell 2000 Index and -4.9% loss for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Choice Equities highlighted stocks like Farmer Bros. Co. (NASDAQ:FARM) in the Q3 2022 investor letter. Headquartered in Northlake, Texas, Farmer Bros. Co. (NASDAQ:FARM) engages in the business of coffee, tea, and culinary products. On December 13, 2022, Farmer Bros. Co. (NASDAQ:FARM) stock closed at $4.9100 per share. One-month return of Farmer Bros. Co. (NASDAQ:FARM) was -4.66% and its shares lost 26.61% of their value over the last 52 weeks. Farmer Bros. Co. (NASDAQ:FARM) has a market capitalization of $95.964 million.

Choice Equities made the following comment about Farmer Bros. Co. (NASDAQ:FARM) in its Q3 2022 investor letter:

Farmer Bros. Co. (NASDAQ:FARM) – Shares of Farmer Brothers continue to trade at a deep discount to asset value and earnings power. Recently, the company attracted the attention of an activist, a longtime shareholder who appears intent on helping the company realize the value inherent in the company’s assets. The team of potential board members recently nominated have impressive experience and have been successful in prior episodes, catalyzing value with a sale of the company in prior instances at both Jamba Juice and The Pantry. I look forward to you updating you on progress here.”

Farmer Bros. Co. (NASDAQ:FARM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Farmer Bros. Co. (NASDAQ:FARM) at the end of the third quarter which was 6 in the previous quarter.

We discussed Farmer Bros. Co. (NASDAQ:FARM) in another article and shared the best coffee stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.