Cove Street Capital, LLC Reduces Stake in Lifecore Biomedical Inc
On August 15, 2023, Cove Street Capital, LLC (Trades, Portfolio), a renowned investment firm, reduced its holdings in Lifecore Biomedical Inc (NASDAQ:LFCR), a leading contract development and manufacturing organization. This article provides an in-depth analysis of the transaction, the profiles of both entities, and the potential impact on their respective portfolios.
Details of the Transaction
Cove Street Capital, LLC (Trades, Portfolio) sold 36,096 shares of Lifecore Biomedical Inc on August 15, 2023, at a trading price of $9.58 per share. This transaction reduced the firm's total holdings in Lifecore Biomedical Inc to 1,583,440 shares, representing 4.71% of its portfolio and 5.15% of Lifecore's total shares. The transaction had a -0.11% impact on Cove Street Capital's portfolio.
Profile of Cove Street Capital, LLC (Trades, Portfolio)
Based in El Segundo, California, Cove Street Capital, LLC (Trades, Portfolio) is an investment firm with a portfolio of 80 stocks, primarily in the technology and industrials sectors. The firm's top holdings include Lifecore Biomedical Inc(NASDAQ:LFCR), Viasat Inc(NASDAQ:VSAT), White Mountains Insurance Group Ltd(NYSE:WTM), Ecovyst Inc(NYSE:ECVT), and IAC Inc(NASDAQ:IAC). The firm's equity stands at $322 million.
Overview of Lifecore Biomedical Inc
Lifecore Biomedical Inc, a US-based company, specializes in the development, fill, and finish of complex sterile injectable pharmaceutical products in syringes and vials. The company, which went public on February 15, 1996, operates in two segments: Curation Foods and Lifecore. As of August 16, 2023, Lifecore Biomedical Inc has a market capitalization of $290.484 million and a stock price of $9.58. However, the company's PE percentage is currently not applicable as it is operating at a loss.
GuruFocus Valuation of Lifecore Biomedical Inc
According to GuruFocus valuation, Lifecore Biomedical Inc is significantly overvalued with a GF Value of $6.80 and a Price to GF Value ratio of 1.41. The GF Score of the company is 53/100, indicating a poor future performance potential.
Performance and Ranking of Lifecore Biomedical Inc
Lifecore Biomedical Inc has a Financial Strength rank of 3/10, a Profitability Rank of 5/10, and a Growth Rank of 1/10. The company's Piotroski F-Score is 3, indicating a poor financial health, and its Altman Z score is 0.16, suggesting a high bankruptcy risk. The company's cash to debt ratio is 0.02, ranking it 1038th in the industry.
Lifecore Biomedical Inc's Industry and Financial Health
Lifecore Biomedical Inc operates in the Drug Manufacturers industry. The company's interest coverage is currently not applicable due to its operating loss. The company's ROE and ROA are -133.57 and -41.85, respectively, ranking it 939th and 912th in the industry. The company's gross margin growth is 15.10%, but its operating margin growth is currently not applicable.
Momentum and Predictability of Lifecore Biomedical Inc
The company's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 23.99, 35.35, and 43.41, respectively. The company's Momentum Index 6 - 1 Month is 64.88, ranking it 27th in the industry. However, the company's predictability rank is currently not available due to insufficient data.
Conclusion
In conclusion, Cove Street Capital, LLC (Trades, Portfolio)'s recent transaction has reduced its stake in Lifecore Biomedical Inc, impacting both entities' portfolios. Despite Lifecore Biomedical Inc's challenging financial health and poor performance potential, it remains a significant holding in Cove Street Capital's portfolio. Investors should monitor these developments closely and consider their potential implications.
This article first appeared on GuruFocus.
