Overview of Recent Transaction
On September 30, 2024, William Blair Investment Management, LLC, a prominent investment firm, executed a significant transaction by acquiring 1,442,573 additional shares of Fox Factory Holding Corp (NASDAQ: FOXF). This move increased the firm's total holdings in FOXF to 2,548,484 shares, marking a notable expansion of its investment in the company.
Profile of William Blair Investment Management, LLC
Located at 222 West Adams Street, Chicago, IL, William Blair Investment Management, LLC is renowned for its rigorous investment approach, focusing on long-term value creation. With a portfolio heavily weighted in technology and consumer cyclical sectors, the firm manages an equity portfolio worth approximately $40.53 billion, featuring top holdings such as Apple Inc (AAPL, Financial) and Amazon.com Inc (AMZN, Financial).
Detailed Trade Information
The recent acquisition by William Blair was conducted at a price of $41.50 per share, reflecting a strategic addition to its portfolio. Post-transaction, FOXF now represents 0.28% of the firm's total portfolio, with a significant 6.10% ownership of the company's outstanding shares. This transaction has had a moderate impact of 0.16% on the firm's portfolio.
Introduction to Fox Factory Holding Corp
Fox Factory Holding Corp, based in the USA, operates in the Vehicles & Parts industry. Since its IPO on August 8, 2013, the company has specialized in manufacturing performance-defining products for various vehicles. Despite a challenging market, FOXF remains a leader in its segment, primarily serving markets in North America, Asia, and Europe.
Market Performance and Valuation
Currently, FOXF's stock is priced at $33.095, significantly below its GF Value of $83.24, indicating that the stock is undervalued. This discrepancy suggests a potential investment opportunity, as the stock's market price is only 40% of its estimated fair value. Despite a year-to-date decline of 51.55%, the stock has grown 83.86% since its IPO.
Investment Rationale
William Blair's decision to increase its stake in FOXF could be attributed to the company's strong Profitability Rank and consistent growth metrics. With a Growth Rank of 8/10 and a GF Score of 81/100, FOXF demonstrates good potential for future performance.
Sector and Market Context
The Vehicles & Parts industry is currently experiencing dynamic shifts, with increasing emphasis on innovation and performance enhancement. Fox Factory competes with other significant players like Hotchkis & Wiley Capital Management LLC, which also holds a substantial share in the company. This competitive landscape underscores the strategic nature of William Blair's increased investment.
Conclusion
William Blair Investment Management, LLC's recent acquisition of additional shares in Fox Factory Holding Corp aligns with its strategy of investing in high-growth, profitable companies. Given FOXF's strong market position and undervalued stock price, this move could substantially benefit William Blair's portfolio, offering promising returns as the market adjusts to the company's intrinsic value.
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.
