Here’s Why WD-40 Company (WDFC) Declined in Q3 - InvestingChannel

Here’s Why WD-40 Company (WDFC) Declined in Q3

Diamond Hill Capital, an investment management company, released its “Long-Short Fund” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -5.25% compared to a -4.61% return for the Russell 1000 Index. Even though the fund’s short book trailed the Russell 1000 Index, it still added positive returns. On the other hand, weakness in consumer discretionary and communication services holdings dragged the performance of the long book of the fund in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Capital highlighted stocks like WD-40 Company (NASDAQ:WDFC) in its Q3 2022 investor letter. Headquartered in San Diego, California, WD-40 Company (NASDAQ:WDFC) is a multi-purpose maintenance products distributor. On November 29, 2022, WD-40 Company (NASDAQ:WDFC) stock closed at $168.56 per share. One-month return of WD-40 Company (NASDAQ:WDFC) was 9.38%, and its shares lost 24.56% of their value over the last 52 weeks. WD-40 Company (NASDAQ:WDFC) has a market capitalization of $2.289 billion.

Diamond Hill Capital made the following comment about WD-40 Company (NASDAQ:WDFC) in its Q3 2022 investor letter:

“WD-40 Company (NASDAQ:WDFC) markets a range of maintenance products, and homecare and cleaning products. We believe investors have unrealistic expectations about the company’s ability to grow its revenue base enough to justify its valuation, and the company is likely to be less resilient as COVID-related tailwinds to its business subside. In Q3, shares of WD40 traded down on a weak earnings report that showed falling revenues as the company is also challenged by cost pressures.”

mop, bleach, bathroom, sanitary, yellow, life, cleaner, clean, equipment, object, bottle, home, set, house, hygiene, bucket, sponge, storage, material MsMaria/Shutterstock.com

WD-40 Company (NASDAQ:WDFC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held WD-40 Company (NASDAQ:WDFC) at the end of the third quarter, which was 14 in the previous quarter.

We discussed WD-40 Company (NASDAQ:WDFC) in another article and shared the list of small-cap stocks from Ray Dalio’s Q3 2022 portfolio. 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.

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