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Bruce Berkowitz Loading Up on Seritage Growth Properties

- By Kyle Ferguson

Insider Bruce Berkowitz (Trades, Portfolio) has purchased 110,500 shares of Seritage Growth Properties (SRG) between March 9 and April 6, according to the Securities and Exchange Commission (SEC).


Berkowitz purchased the shares in 16 separate transactions at an average price of $43.43 per share.

He now owns 5,761,235 shares of the company.

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Headquartered in New York, Seritage is a real estate investment trust. The company engages in the acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate throughout the U.S. Its property portfolio includes malls, shopping centers and freestanding locations.

Seritage has a market cap of $2.45 billion, an enterprise value of $4.18 billion, a price-book (P/B) ratio of 2.84, a price-sales (P/S) ratio of 6.06 and a quick ratio of 1.34.

According to GuruFocus, the company has a 3 of 10 financial strength rating with a cash-debt ratio of 0.05 and an equity-asset ratio of 0.30. Its Altman Z-Score of -0.77 indicates it is experiencing financial distress and could potentially file for bankruptcy within the next two years.

The company has a 2 of 10 profitability and growth rating. It has an operating margin of -12.24, a net margin of -23.30%, a return on assets (ROA) of -2.62% and an ROC (Joel Greenblatt (Trades, Portfolio)) of -2.05.

The company's P/B ratio is 2.81 which is close to its two-year low of 2.66.

The company's P/S ratio is 5.98 which is close to its two-year low of 5.65.

Disclosure: I do not own any shares of this company.

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This article first appeared on GuruFocus.