Is Miller Industries (MLR) a Cyclical Business?

Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, Palm Valley Capital Fund increased 1.04% compared to 2.46% and 5.69% gains for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Palm Valley Capital Fund featured stocks like Miller Industries, Inc. (NYSE:MLR) in its first quarter 2024 investor letter. Headquartered in Ooltewah, Tennessee, Miller Industries, Inc. (NYSE:MLR) is a towing and recovery equipment manufacturer. On April 4, 2024, Miller Industries, Inc. (NYSE:MLR) stock closed at $51.99 per share. One-month return of Miller Industries, Inc. (NYSE:MLR) was 7.91%, and its shares gained 53.54% of their value over the last 52 weeks. Miller Industries, Inc. (NYSE:MLR) has a market capitalization of $595.057 million.

Palm Valley Capital Fund stated the following regarding Miller Industries, Inc. (NYSE:MLR) in its first quarter 2024 investor letter:

“We sold out of five Fund positions during the first quarter of 2024. Three positions were sold because the stocks exceeded our intrinsic value estimates: Gencor Industries (ticker: GENC), Miller Industries, Inc. (NYSE:MLR), and Crawford & Co. (ticker: CRD/A). Similarly, tow truck manufacturer Miller Industries is posting record sales and earnings after emerging past the supply chain constraints created by the pandemic. It’s a cyclical business, and we think normalized results are considerably lower.”

A worker in a protective mask welding a tow bar on a transport trailer in a factory.

Miller Industries, Inc. (NYSE:MLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Miller Industries, Inc. (NYSE:MLR) was held by 9 hedge fund portfolios, compared to 6 in the previous quarter, according to our database.

We discussed Miller Industries, Inc. (NYSE:MLR) in another article and shared Palm Valley Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 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.