Edenbrook Capital, LLC Boosts Stake in Brightcove Inc
On October 20, 2023, Edenbrook Capital, LLC (Trades, Portfolio), a renowned investment firm, increased its stake in Brightcove Inc (NASDAQ:BCOV). The firm added 2,005 shares to its portfolio, marking a 0.03% change in its holdings. This transaction, however, had no significant impact on the firm's portfolio.
About Edenbrook Capital, LLC (Trades, Portfolio)
Edenbrook Capital, LLC (Trades, Portfolio), located at 116 Radio Circle, Mt. Kisco, NY, is a firm that has made a name for itself in the investment world. The firm currently holds 12 stocks in its portfolio, 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 shares were purchased at a trade price of $2.93, bringing Edenbrook Capital, LLC (Trades, Portfolio)'s total holdings in Brightcove Inc to 6,310,251 shares. This transaction represents 3.44% of the firm's portfolio and 14.59% of the firm's holdings in Brightcove Inc.
Overview of Brightcove Inc
Brightcove Inc, a USA-based company, is a provider of cloud-based services for the video ecosystem. The firm's solutions are primarily targeted at media companies, broadcasters, publishers, and corporations. Brightcove Video Cloud, the firm's flagship product, enables customers to publish and distribute video to Internet-connected devices. The company operates in two segments: Premium and Volume, and has a market capitalization of $128.887 million. The current stock price is $2.98, and the GF Value is 8.14, indicating a possible value trap.
Performance and Financial Health of Brightcove Inc
Since the transaction, the stock has gained 1.71%, but it has lost 79.45% since its IPO in 2012. The year-to-date price change ratio is -42.91%. The GF Score of the stock is 57/100, indicating poor future performance potential. The Financial Strength rank is 5/10, while the Profitability Rank and Growth Rank are both 3/10. The GF Value Rank is 4/10, and the Momentum Rank is 2/10.
The stock's Piotroski F-Score is 3, and its Altman Z score is -0.51. The cash to debt ratio is 0.81, and the company operates in the Software industry. The ROE and ROA are -25.32 and -11.05, respectively.
Growth and Momentum of Brightcove Inc
The gross margin growth of the stock is 2.10, while the operating margin growth is 0.00. The three-year revenue growth is 1.30, and the EBITDA growth over the past three years is 0.00. The earning growth over the past three years is 27.60.
The RSI 5 day, RSI 9 day, and RSI 14 day are 47.27, 39.42, and 36.09, respectively. The momentum index 6 - 1 month is -14.06, and the momentum index 12 - 1 month is -50.08.
Implications of the Transaction
Edenbrook Capital, LLC (Trades, Portfolio)'s decision to increase its stake in Brightcove Inc is a significant move. Despite the stock's poor performance and financial health, the firm sees potential in Brightcove Inc. This transaction could influence the stock's performance and the firm's portfolio in the future. However, investors should exercise caution due to the stock's low GF Score and potential value trap status.
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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