TPG GP A, LLC (Trades, Portfolio), a prominent investment firm, has recently reduced its stake in Super League Gaming Inc (SLGG, Financial). This article will delve into the details of the transaction, provide an overview of the guru and the traded company, and analyze the performance and financial health of the traded stock.
Details of the Transaction
The transaction took place on July 17, 2023, with TPG GP A, LLC (Trades, Portfolio) reducing its holdings by 117,266 shares. This change in position represents a -1.34% change, leaving the guru with a total of 8,606,923 shares in Super League Gaming Inc. Despite the reduction, the traded stock still holds a 0.05% position in the guru's portfolio, and the guru's holdings represent 22.77% of the traded stock.
Profile of the Guru
TPG GP A, LLC (Trades, Portfolio), located at 301 Commerce Street, Fort Worth, TX, holds 38 stocks in its portfolio, with a total equity of $6.11 billion. The firm's top holdings include Cushman & Wakefield PLC (CWK, Financial), Progyny Inc (PGNY, Financial), LifeStance Health Group Inc (LFST, Financial), Life Time Group Holdings Inc (LTH, Financial), and NEXTracker Inc (NXT, Financial). The firm primarily invests in the healthcare and technology sectors.
Overview of the Traded Company
Super League Gaming Inc, a US-based company, made its initial public offering on February 26, 2019. The company is a leader in creating innovative and immersive entertainment experiences, platform and audience monetization, and dynamic content-feeding channels across the world's top gaming platforms. It operates in three market segments: Direct to consumer, Media and advertising, and Publishing and content studio. The company has a market capitalization of $16.965 million.
Analysis of the Traded Stock
As of July 19, 2023, the stock is trading at $0.347. The stock's PE percentage is not applicable due to insufficient data. The GF Valuation indicates a possible value trap, suggesting investors should think twice before investing. The GF Value of the stock is 7.10, and the stock's price to GF Value is 0.05. Since its IPO, the stock has declined by 96.89%, and year-to-date, it has fallen by 8.56%.
Evaluation of the Traded Stock's Performance
The stock's GF Score is 69, indicating poor future performance potential. In terms of balance sheet, profitability, growth, and GF Value, the stock ranks 6, 2, 8, and 2 respectively. The stock's F Score is 2, and its Z Score is -22.30, suggesting potential financial distress.
Financial Health of the Traded Company
Super League Gaming Inc has a cash to debt ratio of 10000.00, indicating a strong financial position. However, its ROE and ROA are -193.41 and -159.04 respectively, suggesting poor profitability. The company's gross margin growth is not applicable due to insufficient data, but its operating margin growth is 52.20%.
Conclusion
In conclusion, TPG GP A, LLC (Trades, Portfolio)'s recent reduction in its stake in Super League Gaming Inc is a significant move. Despite the reduction, the guru still holds a substantial stake in the company. However, the stock's poor performance and financial health indicators suggest potential risks. Investors should carefully consider these factors before making investment decisions.
