Camping World Holdings (NYSE:CWH) gained 21 spots this week and placed 5th in Fintel’s United States Short Squeeze Screener and Leaderboard.
Camping World’s stock has had a rollercoaster ride since it first traded on the New York Stock Exchange in 2016, where the IPO was first priced at $22. In the first year after listing, the stock rallied over 100% to trade above $45 in early 2018. In the two years that followed, the stock entered a severe bear trading pattern, with shares losing up to 90% of their value from the peak, falling below $5 per share.
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in the March 2020, CWH management began buying shares at the all-time low as the share price built support and confidence. Fintel’s latest insider trade screen would have identified the transactions through the platform’s advanced screening techniques. That First-quarter results for May 2020 sent shares soaring as they posted a near profitable quarter with earnings per share of ($0.03) compared to ($0.67) a year ago and group sales in excess of $1 billion. In addition to earnings, CWH declared a special dividend above the regular dividend. Stocks have performed very well during the pandemic but have once again started a new downtrend.
Shares peaked above $46 this past November before the start of the current bear trading pattern which has seen the stock lose over -36% in 6 months. That Bear trend is stubborn at the moment with a short-term rally taking place this week as first-quarter 2022 results came out. The stock is up +10% this week as the company reported a slight EPS loss of $1.15 versus the market estimate of $1.33 and a slight decline in group sales of $1.66 billion in revenue versus estimates of around $1.64 billion. Interestingly, new and used vehicle inventories increased $938 million to $1.8 billion, with the company attributing the increase to strategic growth in its used vehicle business, 14 additional locations and Easing of supply chain restrictions which excited the market.
This week’s momentum has propelled the CWH Short Squeeze Score higher 92.27 and places the stock 5th out of 5,500 companies included. CWH currently has 46.80% of its float is currently short according to NYSE and Capital IQ. The Short Squeeze Score is the result of a sophisticated multi-factor quantitative model that identifies companies that are most at risk of experiencing a short squeeze. The scoring model uses a combination of short interest, float, short credit fee rates, and other metrics. The number ranges from 0 to 100, with higher numbers indicating a higher risk of a short squeeze compared to its peers and 50 being the average.
We’ve included a chart below from the Fintel platform showing the stock’s fails-to-deliver activity. We found that stock price surges and rallies over the past year have typically been highly correlated with short sellers not redeeming shares.
Looking at Fintel’s other quantitative analysis, we noticed that CWH has a Value Score of 85.97 and a PE ratio (TTM) of 8.83. The Value Score is a proprietary valuation model that ranks companies based on their relative valuation. Scores range from 0 to 100, with 100 being the most underrated.
For value-conscious investors, this could be a stock to watch, and it also pays an annualized dividend yield of 6.25%.
Interesting analyst commentary after Q1 results
Jefferies’ Bret Jordan continues to see the service segment as a key driver of long-term revenue growth as the installed fleet has grown by over 1 million units in recent years. The company maintains a hold rating with a target of $32.
Baird’s Craig Kennison noted in his commentary that given CWH’s capital allocation plan, bears in the stock must weigh the costs of remaining short. The company trimmed estimates following the earnings, lowering its target to $36 from $40, while maintaining its Outperform rating.
Did you know that Camping World has a consensus rating of “Overweight” with an average target price of around $36.50, a 24.5% gain over the current stock price? We note that the consensus target has been trending down since February 2022.
More about delivery errors
Total Undelivered Shares values represent the total net balance of Shares undelivered on a particular settlement date. Deliverables on a given day are the cumulative number of all bugs pending up to that day, plus new bugs that occur on that day, minus bugs that are resolved on that day. The number is not a daily number of errors, but a combined number that includes both new errors on the reporting day and existing errors. In other words, these numbers reflect total errors at a given point in time and may have little or no relation to yesterday’s total errors. Therefore, it is important to note that the age of bugs cannot be determined from these numbers. If all shares have been delivered on a certain day, no entry is made in the table.
Article by Ben Ward, Fintel