On Tuesday, Montreal-based Jarislowsky Fraser disclosed a new position in RB Global (RBA +1.74%), acquiring about 1.8 million shares for an estimated $195.6 million.
What Happened
According to a filing with the U.S. Securities and Exchange Commission released Tuesday, Jarislowsky Fraser Ltd disclosed a new stake in RB Global, purchasing approximately about 1.8 million shares during the third quarter. The estimated transaction value, based on the quarter’s average price, was $195.6 million. The fund did not report a position in the previous quarter.
What Else to Know
This was a new position for the fund, now representing 1.12% of its 13F reportable assets under management as of September 30.
Top five fund holdings after the filing:
- NYSE:BN: $1 billion (5.6% of AUM)
- NYSE:TD: $938 million (5.2% of AUM)
- NYSE:CNI: $836.8 million (4.6% of AUM)
- NASDAQ:OTEX: $790.7 million (4.3% of AUM)
- TSX:BMO: $760.4 million (4.2% of AUM)
As of Thursday, RB Global shares were priced at $100.58, up 17% over the past year.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Thursday) | $100.58 |
| Market capitalization | $18.7 billion |
| Revenue (TTM) | $4.4 billion |
| Net income (TTM) | $417.8 million |
Company Snapshot
- RB Global provides omnichannel marketplaces, auction platforms, digital asset management, and technology solutions for commercial assets and vehicles.
- The company serves a global customer base across automotive, transportation, construction, government, energy, mining, and agriculture sectors.
- It operates worldwide, connecting buyers and sellers through both physical and digital channels.
RB Global, Inc. is a leading provider of asset disposition and marketplace solutions, leveraging a diversified platform that integrates physical and digital channels. The company’s scale and breadth enable it to serve a wide range of industries and asset classes, enhancing liquidity and transparency for buyers and sellers.
Foolish Take
The disclosed investment in RB Global comes fresh off a 15% pullback in the stock over the past month. The company, whose online and physical auction platforms have surged in demand across industrial sectors, adds an industrial counterweight to a portfolio largely dominated by financials and software names like top holdings Brookfield, TD, and Open Text.
RB Global’s fundamentals remain solid despite the selloff. Second-quarter revenue climbed 8% to $1.2 billion amid strong growth in inventory sales and transactional buyer revenue, which helped offset declines in transactional seller and marketplace services revenues. Meanwhile, total transaction volumes up 2% thanks in large part to 9% volume growth in the automotive unit.
For long-term investors, the positioning suggests confidence in RB Global and its evolution from a traditional auctioneer to a full-service digital platform. The company is set to release earnings again on November 6, offering investors more clarity into whether today’s pullback might simply be a temporary reset in a longer runway for growth.
Glossary
13F assets under management: The total value of securities a fund must report quarterly to the SEC, per regulatory requirements.
Reportable assets: Investments that must be disclosed in regulatory filings, such as the SEC Form 13F, by institutional managers.
Omnichannel marketplaces: Sales platforms that integrate both physical and digital channels to reach buyers and sellers.
Asset disposition: The process of selling, transferring, or otherwise disposing of assets, often through auctions or marketplaces.
Stake: The ownership interest or share that an investor holds in a company.
Top five holdings: The five largest investments in a fund's portfolio, ranked by market value.
Initial reported ownership: The first time a fund discloses holding shares of a particular company in its filings.
Digital asset management: Systems or processes for organizing, storing, and accessing digital files and resources efficiently.
Liquidity: The ease with which an asset can be quickly bought or sold without significantly affecting its price.
Transparency: The degree to which information about a company or transaction is openly available and accessible to investors.
TTM: The 12-month period ending with the most recent quarterly report.
