On Friday, California-based Financial Sense Advisors, Inc. disclosed a third-quarter sale of Newell Brands (NWL 0.60%) shares, reducing its position by approximately $8.5 million.
What Happened
According to a Securities and Exchange Commission (SEC) filing released on Friday, Financial Sense Advisors sold 1.6 million shares of Newell Brands (NWL 0.60%) during the third quarter. The transaction decreased its investment in Newell Brands to 259,112 shares, with the position valued at $1.4 million as of September 30.
What Else to Know
The sale left a 0.2% position relative to the fund’s $586.7 million in reportable AUM.
Top five holdings after the filing:
- NYSEMKT:VOO: $36.4 million (6.9% of AUM)
- NYSEMKT:FLOT: $36.1 million (6.8% of AUM)
- NASDAQ:IBIT: $34.5 million (6.5% of AUM)
- NYSE:PAAS: $27 million (5.1% of AUM)
- NASDAQ:TSLA: $26 million (4.9% of AUM)
As of Wednesday, Newell shares were priced at $3.27, down 63% over the past year and well underperforming the S&P 500, which is up 12%. The position was previously 2.3% of the fund's AUM.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $3.42 |
| Market Capitalization | $1.4 billion |
| Revenue (TTM) | $7.3 billion |
| Dividend Yield | 8.5% |
Company Snapshot
Newell Brands is a leading consumer products company with a global footprint and a broad brand portfolio spanning household, commercial, and recreational categories. The company offers a diverse portfolio of consumer and commercial products, including kitchen appliances, home storage solutions, writing instruments, baby care products, and outdoor recreational equipment under well-known brands such as Rubbermaid, Sharpie, Graco, Coleman, and Yankee Candle. It serves a broad customer base, including mass merchants, warehouse clubs, department stores, grocery and drug stores, office supply retailers, e-commerce platforms, and specialty retailers worldwide.
Foolish Take
Paired with Financial Sense's disposal of Whirlpool shares last quarter, this move seems to signal that the wealth manager is continuing to rotate away from consumer discretionary names that are still deep in turnaround mode. Newell’s fundamentals have stabilized, but they remain far from a clean recovery story, and the sharp drawdown in the position puts the stock back at the fringes of the portfolio. With both companies significantly underperforming the market over the past year, the firm’s repositioning reflects a tighter focus on assets it views as more resilient in a higher-rate, cost-sensitive consumer environment.
Newell’s latest results underscore that backdrop. Third-quarter net sales fell 7.2% to $1.8 billion, and core sales dropped 7.4% amid weak international demand (particularly Brazil), retailer inventory reductions, and tariff-driven price pressures. While GAAP operating income swung to a $119 million profit from a $121 million loss last year, the improvement included lapping a prior-year intangible impairment. Management highlighted progress on overhead reduction and margin control, but updated 2025 guidance calls for a full-year sales decline of up to 5%. Amid this backdrop, the fund’s exit seemingly signals a preference for assets with clearer catalysts and stronger momentum.
Glossary
Stake: The ownership interest or investment a fund or investor holds in a particular company.
13F AUM: The total value of assets under management reported by institutional investment managers on SEC Form 13F.
Position: The amount of a particular security or asset held by an investor or fund.
Top five holdings: The five largest investments in a fund’s portfolio, ranked by value.
Dividend yield: Annual dividend payments divided by the stock’s current price, expressed as a percentage.
Reportable AUM: The portion of a fund’s assets required to be disclosed in regulatory filings.
Mass merchants: Large retail stores that sell a wide variety of goods at low prices, such as Walmart or Target.
Warehouse clubs: Membership-based retail stores selling products in bulk at discounted prices, like Costco or Sam’s Club.
TTM: The 12-month period ending with the most recent quarterly report.
Global supply chain: The worldwide network used by companies to produce and distribute goods.
Specialty retailers: Stores focused on specific product categories or markets, offering specialized merchandise.
