On September 30, 2024, COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) executed a significant transaction involving Stoneridge Inc (SRI, Financial). The firm reduced its holdings in Stoneridge Inc by 634,334 shares, marking a 30.69% decrease in its position. This strategic move reflects the firm's response to the current market conditions and valuation metrics of Stoneridge Inc. The transaction was executed at a trade price of $11.19 per share, impacting the firm's portfolio by -0.26%. Following this reduction, COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) holds 1,432,485 shares of Stoneridge Inc, which now represents 0.58% of the firm's portfolio and 5.17% of its total holdings.
Profile of COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio)
COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio), based in New York, is a firm with a strong focus on value investing. The firm manages an equity portfolio valued at approximately $3.1 billion, with top holdings in companies such as Bath & Body Works Inc (BBWI, Financial) and Newell Brands Inc (NWL, Financial). The firm's investment strategy is diversified across sectors, with significant investments in Consumer Cyclical and Technology. This strategic diversification is evident in the firm's top holdings, which also include O-I Glass Inc (OI, Financial), Alight Inc (ALIT, Financial), and GXO Logistics Inc (GXO, Financial).
Overview of Stoneridge Inc
Stoneridge Inc, a USA-based company, is a manufacturer of electrical and electronic components for automotive vehicles. The company operates primarily in North America and is segmented into Control Devices, Electronics, and Stoneridge Brazil. Stoneridge Inc produces a range of products, including instrumentation systems, vehicle management electronics, and application-specific switches and actuators. The Electronics segment, which generates the majority of the company's revenue, focuses on driver information systems, camera-based vision systems, and electronic control units.
Financial Metrics and Valuation of Stoneridge Inc
Stoneridge Inc has a market capitalization of $168.619 million and is currently trading at $6.09 per share. The stock is significantly undervalued with a GF Value of $18.69, indicating a price to GF Value ratio of 0.33. Despite a 14% revenue growth over the past three years, the stock's profitability and growth ranks are relatively low, with a GF Score of 58/100. The company's financial strength is moderate, with a Financial Strength rank of 6/10 and an Altman Z score of 2.53, indicating some financial stability.
Performance and Growth Indicators
The stock has experienced a year-to-date price decline of 68.88% and a 45.58% decrease since the transaction. Despite the revenue growth, the stock's Profitability Rank and Growth Rank are low, at 6/10 and 2/10, respectively. The company's Piotroski F-Score is 6, indicating moderate financial health, while the Momentum Rank is 2/10, reflecting weak stock momentum.
Implications of the Transaction
The reduction in holdings by COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) resulted in a 0.26% impact on the firm's portfolio. The current position of Stoneridge Inc in the firm's portfolio stands at 0.58%, with the stock representing 5.17% of the firm's total holdings. This transaction indicates a strategic decision by the firm, possibly in response to the stock's current market valuation and performance metrics.
Market Context and Sector Analysis
Stoneridge Inc operates within the Vehicles & Parts industry, which has faced challenges impacting its stock performance. The firm's top sectors include Consumer Cyclical and Technology, indicating a diversified investment strategy. The Vehicles & Parts industry has been under pressure, which may have influenced the firm's decision to reduce its stake in Stoneridge Inc.
Conclusion
The transaction by COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) reflects a strategic decision in response to Stoneridge Inc's current market valuation and performance metrics. Investors may consider the firm's investment philosophy and the stock's valuation metrics when evaluating potential investment opportunities. The significant undervaluation of Stoneridge Inc, as indicated by its GF Value, presents a potential opportunity for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
