John Rogers (Trades, Portfolio) Increases Investment in Leslies Inc
John Rogers (Trades, Portfolio), through Ariel Investment, LLC, has recently expanded the firm's portfolio by adding a significant number of shares in Leslies Inc (LESL, Financial). This move underscores the firm's strategy of investing in undervalued small and mid-cap companies. The transaction involved the acquisition of 4,244,003 shares at a price of $6.91 per share, reflecting a belief in the potential growth and value of the pool and spa care brand.
Profile of Ariel Investment's John Rogers (Trades, Portfolio)
John Rogers (Trades, Portfolio) founded Ariel Investment, LLC in 1983 and has since been at the helm of managing the firm's small and mid-cap institutional portfolios, including the Ariel Fund (ARGFX) and Ariel Appreciation Fund (CAAPX). Rogers is known for his patient investment approach, focusing on undervalued companies with sustainable competitive advantages and high barriers to entry. The firm's top holdings include The Carlyle Group Inc(CG, Financial), Mattel Inc(MAT, Financial), and Charles River Laboratories International Inc(CRL, Financial), among others, with an equity portfolio valued at $10.04 billion, predominantly in the Consumer Cyclical and Financial Services sectors.
Leslies Inc: A Dive into the Company's Operations
Leslies Inc, with its stock symbol LESL, is a leading direct-to-consumer pool and spa care brand in the United States. Since its IPO on 2020-10-29, the company has offered a wide range of products for residential and commercial pools and spas. Despite a challenging market, Leslies Inc has maintained a solid financial performance and continues to hold a significant market presence in its industry segment.
Details of the Recent Transaction
The transaction dated 2023-12-31 not only increased the firm's share count in Leslies Inc by 4,244,003 but also had a notable impact on the portfolio, with the trade representing a 0.31% impact. Following the trade, Ariel Investment, LLC holds a total of 29,231,420 shares in Leslies Inc, accounting for 2.13% of the portfolio and 15.90% of the company's shares.
Leslies Inc Stock Performance and Valuation
Leslies Inc's stock is currently trading at $7.65, which is significantly undervalued according to the GF Value of $15.75. The stock has a PE Percentage of 76.50 and a GF Score of 72/100, indicating a likely average performance in the future. The stock has seen a 10.71% gain since the transaction and a year-to-date increase of the same percentage, although it has decreased by 62.99% since its IPO.
Industry and Market Position
Leslies Inc operates within the Retail - Cyclical sector, where it competes with other brands in the pool and spa care market. John Rogers (Trades, Portfolio)'s top sectors align with this investment, as Consumer Cyclical and Financial Services are among the firm's preferred areas of focus.
Financial Health and Growth Prospects
Leslies Inc's financial health and growth prospects are mixed. The company has a Profitability Rank of 7/10 and a Growth Rank of 7/10, but its Financial Strength is rated 4/10. The company's ROE is not applicable, while its ROA stands at 1.66%. Leslies Inc's revenue growth over the past three years has been 9.60%, despite a decline in EBITDA and earnings growth during the same period.
Other Notable Investors in Leslies Inc
Apart from John Rogers (Trades, Portfolio), other notable investors in Leslies Inc include HOTCHKIS & WILEY, Jefferies Group (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Each of these investors has their unique investment strategies and positions in the company, contributing to the diverse shareholder base of Leslies Inc.
Impact of John Rogers (Trades, Portfolio)'s Transaction on Leslies Inc
The recent acquisition by John Rogers (Trades, Portfolio) has solidified Ariel Investment, LLC's position as a significant shareholder in Leslies Inc. This strategic addition to the portfolio aligns with the firm's investment philosophy and could signal confidence in the company's future performance and valuation potential. As Leslies Inc continues to navigate the competitive landscape, the backing of seasoned investors like John Rogers (Trades, Portfolio) may prove beneficial for the company's growth trajectory and stock performance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
