RBC Bearings (RBC) Stock Corrected Due to Concerns Over Supply Chain Constraints

Aug 07, 2023

Conestoga Capital Advisors, an asset management company, released its “SMid Cap Growth Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Conestoga SMid Cap Growth Composite rose 8.52% net of fees in the second quarter, compared to the Russell 2500 Growth Index’s 6.41% return. A mix of both sector allocation and stock selection contributed positively to the relative return of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Smid Cap Strategy highlighted stocks like RBC Bearings Incorporated (NYSE:RBC) in the second quarter 2023 investor letter. Headquartered in Oxford, Connecticut, RBC Bearings Incorporated (NYSE:RBC) is an engineered precision bearings and components manufacturer. On August 9, 2023, RBC Bearings Incorporated (NYSE:RBC) stock closed at $226.14 per share. One-month return of RBC Bearings Incorporated (NYSE:RBC) was 1.20%, and its shares lost 11.93% of their value over the last 52 weeks. RBC Bearings Incorporated (NYSE:RBC) has a market capitalization of $6.564 billion.

Conestoga Smid Cap Strategy made the following comment about RBC Bearings Incorporated (NYSE:RBC) in its second quarter 2023 investor letter:

"RBC Bearings Incorporated (NYSE:RBC): RBC is a market leader in the development of highly engineered precision ball bearings and products through their Aerospace (30% of revenue) and the Industrial Markets (70% of revenue) divisions. RBC reported a strong March quarter with the upcoming quarter guidance a little better than consensus. The stock has corrected due to concerns over supply chain constraints of RBC’s airline customers and the potential negative impact on build rates."

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RBC Bearings Incorporated (NYSE:RBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of first quarter which was 21 in the previous quarter.

We discussed RBC Bearings Incorporated (NYSE:RBC) in another article and shared TimesSquare Capital Management's views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.