Steiner Leisure Ltd (STNR): Diamond Hill Capital Management Discloses Increased Stake And The Company Names New COO

Ric Dillon’s Diamond Hill Capital Management disclosed last Tuesday a slight increase in its exposure to Steiner Leisure Ltd (NASDAQ:STNR). According to its latest SEC filing, the firm added 24,978 shares of Common Stock to its holdings, and now owns 1.4 million shares, which represent 10.3% of the company’s outstanding stock.

Diamond Hill Capital Management is an independent investment management firm headquartered in Columbus, Ohio, and is a wholly owned subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ:DHIL). It was founded by Ric Dillon in 2000 and is currently co-managed by Chuck Bath. Diamond Hill uses a proprietary investment model to determine intrinsic value. According to the firm, its model looks at normalized earnings and growth rate, payout ratio and dividends, terminal earnings multiple, and required rate of return. It currently manages about $14.4 billion in assets.

Steiner Leisure Ltd (NASDAQ:STNR) is a $605.56 million market cap provider of spa services, including traditional and alternative massage, body and skin treatment options, fitness, acupuncture, medi-spa treatments and laser hair removal. Diamond Hill’s disclosure (of its increased stake) came on the same day as the company announced that the Board of Directors had appointed Stephen Lazarus to the position of Chief Operating Officer and Chief Financial Officer. Mr. Lazarus had served as Executive Vice President and Chief Financial Officer since 2006, and before that, as Senior Vice President and Chief Financial Officer, since 2003.

In addition to Diamond Hill, other major institutional investors are also betting on Steiner Leisure Ltd (NASDAQ:STNR). Matthew Lindenbaum’s Basswood Capital disclosed ownership of 82,588 shares of the company, worth more than $3.1 million, by the end of the third quarter. Other important funds with stakes in this business are Jim Simons’ Renaissance Technologies and D. E. Shaw, which own 23,091 shares and 22,276 shares, respectively.

According to the latest SEC filings, Mr. Dillon seems bullish on Citigroup Inc (NYSE:C), United Technologies Corporation (NYSE:UTX), and American International Group Inc (NYSE:AIG).

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned