Edenbrook Capital, LLC Boosts Stake in Brightcove Inc
On October 5, 2023, Edenbrook Capital, LLC (Trades, Portfolio), a renowned investment firm, increased its stake in Brightcove Inc (NASDAQ:BCOV), a leading provider of cloud-based services for the video ecosystem. The firm added 2,500 shares to its portfolio, bringing its total holdings to 6,300,746 shares. This transaction, priced at $2.99 per share, represents a 0.04% change in the firm's holdings and now accounts for 3.51% of its portfolio.
About Edenbrook Capital, LLC (Trades, Portfolio)
Edenbrook Capital, LLC (Trades, Portfolio) is a prominent investment firm based in Mt. Kisco, New York. The firm manages a portfolio of 12 stocks, with a total equity of $537 million. Its top holdings include Haynes International Inc(NASDAQ:HAYN), Marchex Inc(NASDAQ:MCHX), Magnite Inc(NASDAQ:MGNI), Absolute Software Corp(NASDAQ:ABST), and Cognyte Software Ltd(NASDAQ:CGNT). The firm's investments are primarily concentrated in the Technology and Communication Services sectors.
Details of the Transaction
The recent acquisition of Brightcove Inc shares by Edenbrook Capital, LLC (Trades, Portfolio) was executed at a trade price of $2.99 per share. Following this transaction, the firm now holds 6,300,746 shares of Brightcove Inc, representing 14.57% of the firm's holdings in the traded stock.
Overview of Brightcove Inc
Brightcove Inc (NASDAQ:BCOV), a US-based company, is a leading provider of cloud-based services for the video ecosystem. The company's flagship product, Brightcove Video Cloud, enables customers to publish and distribute video to Internet-connected devices. The company operates in the Premium and Volume segments and has a market capitalization of $134.942 million. The current stock price is $3.12, and the GF Value is $8.12, indicating a possible value trap.
Performance and Financial Health of Brightcove Inc
Since its IPO in 2012, Brightcove Inc has seen a price change of -78.48%. The year-to-date price change ratio stands at -40.23%. The company's GF Score is 55/100, indicating poor future performance potential. The company's financial strength is ranked 5/10, with a profitability rank of 3/10 and a growth rank of 2/10. The GF Value Rank is 4/10, and the momentum rank is 2/10.
The company's Piotroski F-Score is 3, and its Altman Z score is -0.48. The cash to debt ratio is 0.81, and the company's ROE and ROA are -25.32 and -11.05, respectively. The gross margin growth is 2.10, while the operating margin growth is 0.00.
Momentum of Brightcove Inc
The RSI 5 Day, RSI 9 Day, and RSI 14 Day of Brightcove Inc are 11.35, 17.14, and 22.88, respectively. The momentum index 6 - 1 month is -17.82, and the momentum index 12 - 1 month is -42.34.
Conclusion
In conclusion, Edenbrook Capital, LLC (Trades, Portfolio)'s recent acquisition of Brightcove Inc shares represents a significant addition to its portfolio. Despite the company's poor performance and financial health indicators, the firm's increased stake in Brightcove Inc could potentially yield significant returns in the long run. However, value investors should exercise caution and conduct thorough research before making investment decisions.
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.
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