K12 Inc. (LRN), Big 5 Sporting Goods Corporation (BGFV): Stadium Capital Was Focusing On These 5 Stocks in Q1

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Editor’s Note: Related tickers: Builders FirstSource, Inc. (NASDAQ:BLDR), Insperity Inc (NYSE:NSP), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), Universal Technical Institute, Inc. (NYSE:UTI), K12 Inc. (NYSE:LRN)

The top five equity holdings of Stadium Capital Management have changed little during the first quarter of 2013. Alexander Medina Seaver, the fund’s manager, has however,made a number of small tweaks to the size of the positions. Let us now take a closer look at this “fab five.”

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Top dog

The top pick of Stadium capital is Builders FirstSource, Inc. (NASDAQ:BLDR), a company that manufactures and sells building products. The fund reduced its investment by 4%, and it currently holds a little over 14.3 million shares, valued at $83.8 million. The stock’s price has increased by 19% in 2013, and is currently trading just shy of $7 per share. The stock has a beta of 2.44 and trades at a forward Price to Earnings (P/E) ratio of 27.80. For the first quarter, the company beat the market expectations by posting revenues of $374.5 million and a loss of $0.07 per share.

The best of the rest

The fund increased its investment in Insperity Inc (NYSE:NSP) by 2%. The reported value of the investment in the business solutions provider is $72.5 million. The stock price is down 11% since the start of the year and is currently oscillating around the $29.5 value. Insperity Inc (NYSE:NSP)’s stock has a trailing P/E ratio of 19.23 and a forward P/E of 15.98. It pays a dividend of $0.68, representing a yield of 2.3%, and has a beta of 1.16. Analysts are rather bullish on this stock, setting a price target range of $30-$39. Four of them recommend it as a Hold and two of them recommend it as a Buy or Strong Buy.

Big 5 Sporting Goods Corporation (NASDAQ:BGFV)

Another position that has been slightly reduced is Big 5 Sporting Goods Corporation (NASDAQ:BGFV). Seaver sold more than 150,000 shares of the sporting goods retailer, with the fund’s investment valued at a little over $50 million. The stock’s price recently went into an uptrend after Big 5 Sporting Goods Corporation (NASDAQ:BGFV) posted better than expected financial results for the first quarter of 2013. Big 5 Sporting Goods Corporation (NASDAQ:BGFV) registered revenues of $246.3 million and earnings of $0.34 per share. This prompted a 29% surge to the current share price of approximately $21. For the current quarter, analysts predict the company will post Earnings Per Share (EPS) of $0.25 and revenues of $243 million. The stock has a beta of 1.79 and pays a dividend of $0.33—a yield of 1.5%.

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