Miller Value Partners, an investment management company, released its “Income Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned 1.85% (net of fees) outperforming the ICE BofA US High Yield Index’s 0.54% return and the S&P 500 Index’s -3.27% return. There is a weakness in the global market which is largely tied to rates continuing their parabolic move higher. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Income Strategy highlighted stocks like Organon & Co. (NYSE:OGN) in the third quarter 2023 investor letter. Headquartered in Jersey City, New Jersey, Organon & Co. (NYSE:OGN) is a pharmaceutical company that develops and delivers health solutions through a portfolio of prescription therapies and medical devices. On October 18, 2023, Organon & Co. (NYSE:OGN) stock closed at $16.29 per share. One-month return of Organon & Co. (NYSE:OGN) was -12.33%, and its shares lost 30.86% of their value over the last 52 weeks. Organon & Co. (NYSE:OGN) has a market capitalization of $4.202 billion.
Miller Value Income Strategy made the following comment about Organon & Co. (NYSE:OGN) in its Q3 2023 investor letter:
“Organon & Co. (NYSE:OGN) reported 2Q23 revenue of $1.61B, +1.5% Y/Y, ahead of consensus of $1.57B, and Adjusted EPS from continuing operations of $1.31, +4.8% Y/Y, well ahead of consensus of $1.00. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter came in at $530MM, or a margin of 33.0%, +66bps Y/Y. Biosimilars revenue increased 14% Y/Y (+15% excluding the impact of foreign currency (ex-FX)), driven by a 20% Y/Y ex-FX increase in Renflexis sales, while the Women’s Health segment saw top-line growth of 8% (+10% ex-FX), driven primarily by Nexplanon sales growth of 12% ex-FX. The company maintained a quarterly dividend of $0.28/share, or an annualized yield of ~6.5%. Management revised FY23 guidance for revenue of $6.35B (vs. prior guidance of $6.30B), and an Adjusted EBITDA margin of 32.3% (vs. prior guidance of 32.0%), at the respective midpoints, implying FY23 Adjusted EBITDA of $2.05B, or an Enterprise Value (EV)/EBITDA multiple of ~6.3x.”
A lab technician using a microscope to examine the biopharmaceutical company’s molecules. Editorial photo for a financial news article. 8k. –ar 16:9
Organon & Co. (NYSE:OGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Organon & Co. (NYSE:OGN) at the end of second quarter which was 33 in the previous quarter.
We discussed Organon & Co. (NYSE:OGN) in another article and shared the list of worst performing healthcare stocks in 2023. In addition, please check out our hedge fund investor letters Q3 2023 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.
