DRIEHAUS CAPITAL MANAGEMENT LLC Reduces Stake in The Real Good Food Company Inc
Overview of DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio)'s Recent Transaction
On October 31, 2023, DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio), an established investment firm, executed a reduction in its holdings of The Real Good Food Company Inc (NASDAQ:RGF). The firm sold 31,017 shares at a trade price of $2.34, which resulted in a change of -4.60% in their holdings, leaving them with a total of 642,841 shares in RGF. This transaction altered DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio)'s position in the company to 3.34% of their portfolio, with a negligible trade impact of 0%.
Profile of DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio)
Driehaus Capital Management LLC is a Chicago-based investment management firm founded in 1982 by Richard Herman Driehaus. The firm is known for its fundamental, research-driven investment decisions, focusing on growth stocks across various market capitalizations. With a heavy emphasis on the technology and healthcare sectors, DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio) has a diverse portfolio, including top holdings such as Axcelis Technologies Inc (NASDAQ:ACLS) and Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM). The firm manages over $10.4 billion in assets, with a turnover rate of 71.6% and an average holding period of 2.1 quarters.
The Real Good Food Company Inc's Stock Overview
The Real Good Food Company Inc, trading under the symbol RGF in the USA, made its public debut on November 5, 2021. RGF is a health- and wellness-focused frozen food company, offering high-protein, low-sugar, gluten- and grain-free products across breakfast, entrees, pizza, and snacks segments. With a market capitalization of $36.782 million and a current stock price of $1.91, RGF operates exclusively within the United States.
Financial Health and Performance Metrics of RGF
RGF's financial health appears to be under strain, with a GF Score of 14/100, indicating poor future performance potential. The company's balance sheet and profitability ranks are low, at 2/10 and 1/10 respectively. RGF's growth rank is also at the bottom, with a score of 0/10. The company's cash to debt ratio is a mere 0.01, placing it at rank 1730 among its peers. These metrics suggest that RGF is facing significant financial challenges.
Market Performance and Valuation of RGF
Since the trade date, RGF's stock price has decreased by 18.38%, with a staggering drop of 83.62% since its IPO and a year-to-date decline of 72.36%. The company's valuation cannot be evaluated due to a lack of GF Value data, and its price to GF Value ratio stands at 0.00. RGF's momentum and RSI indicators also reflect a negative trend, with a 14-day RSI of 29.42 and a momentum index 12 - 1 month of -54.74.
Comparative Analysis with Largest Guru Shareholder
First Eagle Investment (Trades, Portfolio) Management, LLC is currently the largest guru shareholder of RGF, although specific share percentage data is not provided. Comparing DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio)'s recent reduction to First Eagle's position could offer insights into differing investment strategies or outlooks on RGF's future.
Implications of the Trade for Value Investors
The reduction by DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio) may signal a strategic portfolio adjustment in line with the firm's investment philosophy. Given RGF's challenging financial metrics and market performance, value investors might interpret this trade as a cautious move, reflecting a reassessment of RGF's growth prospects and overall investment appeal.
Conclusion
DRIEHAUS CAPITAL MANAGEMENT LLC (Trades, Portfolio)'s recent reduction in The Real Good Food Company Inc is a notable move that could influence market perception of the stock. With RGF's financial health and market performance showing signs of struggle, the firm's decision aligns with a cautious approach to investment in the current economic climate. Investors will be watching closely to see how this trade impacts RGF's stock and whether it presages further shifts in investor sentiment.
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.
This article first appeared on GuruFocus.
