Investing

Primecap Management Trims Position in NN (NNBR)

Pasadena-based Primecap Management has filed a 13G/A form with the SEC disclosing ownership of 1,763,640 shares of NN Inc (NNBR). This represents 4.02% of the company.

In their previous filing dated February 10, 2022 they reported 2,768,600 shares and 6.43% of the company, a decrease in shares of 36.30% and a decrease in total ownership of 2.41% (calculated as current – previous percent ownership).

In their most recent earnings update, the company reported the following highlights:

  • Net sales were $127.3 million, an increase of 8.6% from the third quarter of 2021, primarily due to increased pricing and improved demand in Mobile Solutions, partially offset by unfavorable foreign exchange effects.
  • Loss from operations was $2.1 million compared to loss from operations of $4.6 million in the third quarter of 2021. The reduction in loss from operations was primarily driven by an increase in sales and lower incentive and stock-based compensation expenses.
  • Income from operations for the Power Solutions segment was $2.6 million compared to $1.3 million for the same period in 2021. Loss from operations for Mobile Solutions was $0.5 million compared a loss of $0.3 million for the same period in 2021.
  • Net loss was $2.2 million compared to a net loss of $3.4 million for the same period in 2021. The decrease in net loss was primarily driven by higher sales, lower incentive and stock-based compensation expenses, and an increase in the share of net income from the China joint venture.

Additionally, the company provided the following full year guidance:

  • Revenue in the range of $503 million to $510 million
  • Adjusted EBITDA in the range of $45 million to $48 million
  • Free cash flow in the range of ($12) to ($9) million
  • Free cash flow outlook does not include CARES Act tax refund of ~$11 million due to uncertain timing

What are other large shareholders doing?

TIBAX – Thornburg Investment Income Builder Fund – Class A holds 5,888,177 shares representing 13.42% ownership of the company. In it’s prior filing, the firm reported owning 5,244,000 shares, representing an increase of 10.94%. The firm increased its portfolio allocation in NNBR by 10.85% over the last quarter.

Corre Partners Management, LLC holds 5,488,041 shares representing 12.51% ownership of the company. In it’s prior filing, the firm reported owning 5,425,252 shares, representing an increase of 1.14%. The firm decreased its portfolio allocation in NNBR by 53.47% over the last quarter.

TEDIX – Franklin Mutual Global Discovery Fund Class A holds 4,331,380 shares representing 9.87% ownership of the company. No change in the last quarter.

Legion Partners Asset Management, LLC holds 4,074,151 shares representing 9.29% ownership of the company. No change in the last quarter.

VGTSX – Vanguard Total International Stock Index Fund Investor Shares holds 3,918,422 shares representing 8.93% ownership of the company. In it’s prior filing, the firm reported owning 4,056,689 shares, representing a decrease of 3.53%. The firm decreased its portfolio allocation in NNBR by 4.87% over the last quarter.

What is the overall institutional sentiment?

There are 616 funds or institutions reporting positions in NN Inc. This is a decrease of 23 owner(s) or 3.60%.

Average portfolio weight of all funds dedicated to NN Inc is 0.2935%, an increase of 14.5789%. Total shares owned by institutions increased in the last three months by 0.67% to 71,831,328 shares.

This article originally appeared on Fintel

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