Should You Hold Stanley Black & Decker (SWK)?

Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined -5.66% compared to the -4.93% decline for the Russell Midcap Value Index and -3.44% decline for the Russell Midcap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Ariel Investment highlighted stocks like Stanley Black & Decker, Inc. (NYSE:SWK) in the Q3 2022 investor letter. Headquartered in New Britain, Connecticut, Stanley Black & Decker, Inc. (NYSE:SWK) is in the business of tools and storage and industrials. On December 1, 2022, Stanley Black & Decker, Inc. (NYSE:SWK) stock closed at $82.32 per share. One-month return of Stanley Black & Decker, Inc. (NYSE:SWK) was 10.29%, and its shares lost 54.78% of their value over the last 52 weeks. Stanley Black & Decker, Inc. (NYSE:SWK) has a market capitalization of $12.179 billion.

Ariel Investment made the following comment about Stanley Black & Decker, Inc. (NYSE:SWK) in its Q3 2022 investor letter:

“Shares of Stanley Stanley Black & Decker, Inc. (NYSE:SWK) sharply declined in the quarter as inflation and rapidly rising rates drove a swift deterioration in consumer demand. In response, SWK is laser-focused on reducing inventory to generate cash flow and re-sizing the cost base through simplifying its corporate structure, optimizing operations and transforming the supply chain. Though the macroeconomic backdrop remains challenging, we have conviction in SWK’s experienced executive management team and think the balance sheet is well-positioned to weather the storm. At current levels, SWK is trading at a substantial, historically-high discount to our estimate of private market value.”

Photo by Tekton on Unsplash

Stanley Black & Decker, Inc. (NYSE:SWK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Stanley Black & Decker, Inc. (NYSE:SWK) at the end of the third quarter, which was 32 in the previous quarter.

We discussed Stanley Black & Decker, Inc. (NYSE:SWK) in another article and shared the best dividend stocks of all time. In addition, please check out our hedge fund investor letters Q3 2022 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.