4. Berry Corporation (NASDAQ:BRY)
Number of Hedge Fund Holders: 16
Market Capitalization as of August 11: $752.162 million
1-month Share Price Gain as of August 11: 35.09%
Berry Corporation (NASDAQ:BRY) is a Texas-based upstream energy company that manages conventional oil reserves in the western United States. Berry Corporation (NASDAQ:BRY) is one of the small-caps that rebounded strongly in the last month, with the stock gaining 35%. On August 11, the company declared a quarterly dividend of $0.62 per share. The dividend is payable on August 25, to shareholders of record on August 15. The stock delivers a dividend yield of 2.46% as of August 11.
On July 22, Piper Sandler analyst Mark Lear maintained an ‘Overweight’ rating on Berry Corporation (NASDAQ:BRY) and lowered the price target on the stock to $12 from $15. The energy sector has been volatile the last six weeks due to recession threats and cost inflation, but with the sector “de-rating faster than the pullback in crude,” the setup is “broadly favorable” for exploration and production companies heading into Q2 earnings, the analyst told investors.
According to Insider Monkey’s data, 16 hedge funds were long Berry Corporation (NASDAQ:BRY) at the end of March 2022, compared to 15 funds a quarter ago. Howard Marks’ Oaktree Capital Management is the largest stakeholder of the company, with roughly 13 million shares worth $133.2 million.
Here is what Heartland Value Fund had to say about Berry Corporation (NASDAQ:BRY) in its Q4 2021 investor letter:
“Uncertainty about economic growth in the coming quarters weighed on Energy companies in the broader market. Longer term, we believe the capital discipline oil producers have shown over the past few years will provide support for energy prices as increased incremental demand will continue to absorb modest production increases. The Fund’s holdings in the sector fared better, and the portfolio owns well managed producers with strong balance sheets. Longtime holding Berry Corporation (BRY) fits this profile.
We highlighted Berry in the third quarter commentary praising its seasoned management team and financial strength. The company maintained its record of shareholder-friendly policies during the most recent quarter.
The move, along with compelling valuations—shares trade at just 4.7X EV/EBITDA—makes Berry, in our view, an attractive opportunity. Management remains disciplined in allocating capital, reining in debt, and focusing on high-margin production. This approach, along with aggressive efforts to return capital to shareholders through share repurchases and increased dividends, should attract additional investor interest.”
