Renowned investor SEIDMAN LAWRENCE B (Trades, Portfolio) recently increased his stake in Bankwell Financial Group Inc (BWFG, Financial), according to a 13DG filing. This article provides an in-depth analysis of the transaction, the guru's profile, and the company's performance metrics. The goal is to provide valuable insights to our value investor members and attract more traffic to GuruFocus.
Profile of Guru SEIDMAN LAWRENCE B (Trades, Portfolio)
SEIDMAN LAWRENCE B (Trades, Portfolio) is a prominent investor based in Parsippany, NJ. His investment philosophy is centered around identifying undervalued stocks with strong growth potential. He currently holds 25 stocks in his portfolio, with a total equity of $80 million. His top holdings include Bankwell Financial Group Inc(BWFG, Financial), Kearny Financial Corp(KRNY, Financial), Malvern Bancorp Inc(MLVF, Financial), Prudential Bancorp Inc(PBIP, Financial), and Columbia Financial Inc(CLBK, Financial).
Details of the Transaction
On August 3, 2023, SEIDMAN LAWRENCE B (Trades, Portfolio) added 179 shares of Bankwell Financial Group Inc to his portfolio at a price of $27.68 per share. This transaction increased his total holdings in the company to 722,900 shares, representing 9.23% of his portfolio. Despite the small share change of 0.02, this transaction signifies the guru's continued confidence in the company's growth prospects.
Profile of Bankwell Financial Group Inc
Bankwell Financial Group Inc, with a market cap of $217.28 million, is a bank holding company based in the USA. The company offers a range of financial products and services, including commercial lending, retail lending, and depository services. The company's stock is currently priced at $27.75, with a PE percentage of 6.07. According to GuruFocus, the stock is modestly undervalued with a GF Value of 38.03 and a Price to GF Value ratio of 0.73. The company's GF Score is 74/100, indicating good outperformance potential.
Analysis of Stock Performance
Bankwell Financial Group Inc has a Financial Strength rank of 4/10 and a Profitability Rank of 6/10. The company's Growth Rank is 7/10, and its GF Value Rank is 10/10. The company's Momentum Rank is 2/10, indicating a relatively low momentum. The company's Piotroski F-Score is 7, suggesting a healthy financial situation. However, the company's Altman Z score is 0.00, indicating potential financial distress.
Stock Growth and Momentum
The company has demonstrated strong growth over the past three years, with a revenue growth of 19.10% and an earnings growth of 27.50%. However, the company's momentum indices for the past 6 and 12 months are -19.27 and -23.41, respectively, indicating a negative momentum. The company's RSI 14 Day Rank is 1406, suggesting that the stock is currently overbought.
Conclusion
In conclusion, SEIDMAN LAWRENCE B (Trades, Portfolio)'s recent acquisition of additional shares in Bankwell Financial Group Inc reflects his confidence in the company's growth prospects. Despite the company's low momentum and potential financial distress, its strong growth and profitability metrics suggest that it may still be a good investment opportunity. However, investors should conduct their own due diligence before making investment decisions.
