Martin Whitman, Third Avenue Management Boost Stake In Tejon Ranch Company (TRC)

Martin Whitman, the manager of Third Avenue Management, is particularly bullish on Tejon Ranch Company (NYSE:TRC). According to a recent filing with the Securities and Exchange Commission, Third Avenue has boosted its stake to 2.74 million shares,  from 372,100. The new position accounts for 13.09% of the company’s common stock and, given the current market price of $34.42 per share, it is worth about $94.3 million.

Chuck Royce, the manager of Royce & Associates, shares Whitman’s optimism about the prospects of Tejon Ranch Company (NYSE:TRC). During the previous quarter, Royce increased his fund’s stake by 30% to 882,900 shares valued at $32.4 million. Mario Gabelli is also keeping an eye on this stock, with his fund, GAMCO Investors, holding 356,400 shares worth $13,1 million.

A real estate development company, Tejon Ranch Company (NYSE:TRC) has a market cap of $707 million and does not pay a dividend. So far this year the stock has been trending sideways, below the start-of-the-year price level of $36.6 per share. It has a trailing Price to Earnings (P/E) ratio of 172.xx, considerably higher than the industry average of 28.20. For the three months ending December 31, 2013, Tejon Ranch posted revenues of $12.9 million, a 4.2% year-over-year decrease. The company also registered a loss per share of $0.04. Current quarter is expected to bring revenues of $10 million and earnings per share of $0.06.

During the previous quarter, Whitman slightly trimmed his fund’s top position, a notable change being the 16% decrease in the holding of Devon Energy Corp (NYSE:DVN). Third Avenue currently holds 3.11 million shares reportedly worth $192 million. Whitman has, on the other hand, increased his funds holding of Post Properties Inc (NYSE:PPS) by 109% to 1.45 million shares valued at $65.7 million, according to Third Avenue’s latest 13F report.

Disclosure: none.

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