On September 30, 2024, COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) executed a significant transaction involving Genius Sports Ltd (GENI, Financial). The firm added 8,016,598 shares of Genius Sports Ltd, marking a substantial increase of 186.52% in its position. This strategic move highlights the firm's interest in the technology and sports betting sectors, as it now holds a total of 12,314,466 shares in the company. The transaction was executed at a price of $7.84 per share, resulting in a 2.24% impact on the firm's portfolio.
Profile of COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio)
COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) is a prominent investment firm based in New York, known for its 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 centered around identifying undervalued opportunities in the market, with a particular emphasis on the Consumer Cyclical and Technology sectors.
Overview of Genius Sports Ltd
Genius Sports Ltd, headquartered in the UK, is a B2B provider of scalable, technology-led products and services to the sports, sports betting, and sports media industries. The company operates through three key product areas: Sports Technology and Services, Betting Technology, Content and Services, and Media Technology, Content and Services. The majority of its revenue is generated from the Betting Technology, Content and Services division, primarily in Europe. Genius Sports Ltd is currently trading at $9.055, reflecting a 15.5% gain since the transaction.
Transaction Details and Impact
The recent acquisition by COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio) has increased its stake in Genius Sports Ltd to 5.41% of the firm's holdings. This transaction, executed at $7.84 per share, has had a 2.24% impact on the firm's portfolio. The significant increase in shares indicates a strong belief in the potential of Genius Sports Ltd within the technology and sports betting sectors.
Stock Performance and Valuation
Despite the recent price increase, Genius Sports Ltd is considered significantly overvalued with a GF Value of $6.75 and a Price to GF Value ratio of 1.34. The stock has experienced a 15.5% gain since the transaction, yet it remains 45.12% below its initial public offering (IPO) price. The company's market capitalization stands at $1.91 billion, with a GF Score of 58/100, indicating poor future performance potential.
Financial Metrics and Growth Prospects
Genius Sports Ltd has demonstrated a revenue growth of 29.70% over the past three years. However, the company's EBITDA and earnings growth have been negative, at -32.40% and -25.10% respectively. The company's balance sheet is relatively strong with a Financial Strength rank of 8/10, but profitability remains a challenge with a Profitability Rank of 2/10.
Industry and Competitive Position
Operating within the Interactive Media industry, Genius Sports Ltd focuses on leveraging proprietary technology and data infrastructure. The company's Altman Z score of 5.02 suggests a stable financial position, while its Piotroski F-Score of 6 indicates moderate financial health. Despite these strengths, the company's profitability and growth prospects remain areas of concern.
Conclusion
COOPER CREEK PARTNERS MANAGEMENT LLC (Trades, Portfolio)'s increased stake in Genius Sports Ltd underscores a strategic move within the technology and sports betting sectors. While the stock has shown recent gains, investors should be cautious of its overvaluation and mixed financial metrics. The firm's decision to increase its position reflects confidence in the company's potential, but the challenges in profitability and growth should be carefully considered by investors evaluating its long-term prospects.
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.
