Legendary Value Investor Seth Klarman is Buying These 5 Stocks

2. BellRing Brands, Inc. (NYSE:BRBR)

Baupost Group’s Stake Value: $11.06 million

Percentage of Baupost Group’s 13F Portfolio: 0.11%

Number of Hedge Fund Holders: 22

Increase in Stake: New Addition To Portfolio

BellRing Brands, Inc. (NYSE:BRBR) provides sports nutrition products through its brands Premier Protein and Dymatize, which include protein shakes, powders and nutrition bars. It was formerly a business unit of consumer packaged goods company Post Holdings, Inc. (NYSE:POST).

On May 9, JPMorgan analyst Ken Goldman added BellRing Brands, Inc. (NYSE:BRBR) to the firm’s ‘Analyst Focus List’ as a “growth strategy selection”, with 34% upside to his price target of $34 as of December 2022. Even after recent outperformance, the analyst sees the company shares as attractive, and maintains that the market doesn’t fully appreciate how quickly the firm’s sales are poised to grow in the next two years. He models organic growth of 13.8% over the next two years. Mizuho analyst John Baumgartner also added BellRing Brands, Inc. (NYSE:BRBR) to the firm’s ‘Top Picks’ list, and was bullish on the shares with a ‘Buy’ rating and a price target of $33, up from $30.

Seth Klarman knows how to spot value in the stock market, and aptly initiated a position in the high-flying nutrition company in the first quarter of 2022. He held roughly 480,000 shares of BellRing Brands, Inc. (NYSE:BRBR) at a value of $11.06 million.

The firm posted EPS of $0.23 in the first quarter, beating estimates by $0.07. $315.20 million in revenue for the quarter was also above analysts’ forecasts by $7.75 million.

Overall, investors were seen buying into BellRing Brands, Inc. (NYSE:BRBR). At the end of the fourth quarter, 22 hedge funds reported ownership of positions in the company, as compared to 20 hedge funds in the previous quarter.