On August 21, 2023, Arena Investors LP, a New York-based investment firm, significantly increased its stake in Charge Enterprises Inc (CRGE, Financial), a leading provider of electrical, broadband, and electric vehicle (EV) charging infrastructure services. This article provides an in-depth analysis of the transaction, the profiles of both Arena Investors LP and Charge Enterprises Inc, and an evaluation of CRGE's stock performance.
Details of the Transaction
The transaction took place on August 21, 2023, with Arena Investors LP adding 9,971,811 shares of Charge Enterprises Inc to its portfolio at a trade price of $0.6348 per share. This move had a 6.71% impact on the firm's portfolio, increasing its total holdings in CRGE to 21,574,039 shares. As a result, CRGE now represents 14.52% of Arena Investors LP's portfolio, making the firm a significant stakeholder with a 9.99% holding in the company.
Profile of Arena Investors LP
Arena Investors LP is an investment firm located at 405 Lexington Avenue, New York. The firm manages a portfolio of 58 stocks, with a total equity of $88 million. Its top holdings include Horizon Therapeutics PLC(HZNP, Financial), Charge Enterprises Inc(CRGE, Financial), Apollo Strategic Growth Capital II(APGB, Financial), DP Cap Acquisition Corp I(DPCS, Financial), and Capitalworks Emerging Markets Acquisition Corp(CMCA, Financial). The firm's investment philosophy is primarily focused on the Financial Services and Communication Services sectors. 
Overview of Charge Enterprises Inc
Charge Enterprises Inc, listed under the symbol CRGE, is a US-based company that provides end-to-end project management services in the electrical, broadband, and EV charging infrastructure sectors. The company operates in two segments: Infrastructure and Telecommunications, with the latter generating the majority of its revenue. As of August 21, 2023, the company has a market capitalization of $128.989 million and a stock price of $0.6. 
Analysis of Charge Enterprises Inc's Stock
Charge Enterprises Inc's stock performance has been underwhelming, with a year-to-date price change ratio of -48.28% and a price change ratio of -86.96% since its IPO on November 2, 2005. The company's PE percentage is currently at 0, indicating that it is operating at a loss. Furthermore, due to insufficient data, the GF Valuation and price to GF Value cannot be evaluated. The company's GF Score is 38/100, indicating poor future performance potential. Its Financial Strength is ranked 5/10, while its Profitability Rank and Growth Rank are 1/10 and 0/10 respectively.
Further Analysis of Charge Enterprises Inc's Stock
Charge Enterprises Inc's stock has an Altman Z score of 2.71 and a cash to debt ratio of 2.08, ranking it 100 in its industry. The company's ROE and ROA are -38.29 and -8.29 respectively, ranking it 344 and 327 in its industry. The company's gross margin growth, operating margin growth, and 3-year revenue growth are all at 0. The stock's RSI 5 day, RSI 9 day, and RSI 14 day are 10.56, 17.76, and 23.85 respectively, with the RSI 14 day rank at 18. The stock's momentum index 6 - 1 month and 12 - 1 month are -21.76 and -67.55 respectively, ranking it 322 in its industry.
Conclusion
In conclusion, Arena Investors LP's recent acquisition of a significant stake in Charge Enterprises Inc is a noteworthy move that has made the firm a major stakeholder in the company. However, Charge Enterprises Inc's stock performance and financial indicators suggest that the company is currently facing challenges. As such, value investors should carefully consider these factors before making investment decisions.
