First Trust Capital Management L.P. Acquires New Stake in RF Acquisition Corp
First Trust Capital Management L.P. (Trades, Portfolio), a Chicago-based investment firm, recently acquired a new stake in RF Acquisition Corp. The transaction, which took place on April 30, 2023, saw the firm purchase 436,739 shares in the Singapore-based company. This article provides an in-depth analysis of the transaction, the profiles of both First Trust Capital Management L.P. (Trades, Portfolio) and RF Acquisition Corp, as well as the performance and valuation of the traded stock.
Details of the Transaction
On April 30, 2023, First Trust Capital Management L.P. (Trades, Portfolio) bought 436,739 shares of RF Acquisition Corp at a price of $10.5 per share. This transaction had a 0.2% impact on the firm's portfolio. As of now, RF Acquisition Corp represents 10.14% of the firm's holdings, making it a significant part of its investment strategy.
Profile of First Trust Capital Management L.P. (Trades, Portfolio)
First Trust Capital Management L.P. (Trades, Portfolio) is a renowned investment firm located at 225 W. Wacker Drive, Chicago, IL 60606. The firm manages a diverse portfolio of 228 stocks, with a total equity of $2.32 billion. Its top holdings include Horizon Therapeutics PLC(NASDAQ:HZNP), DCP Midstream LP(DCP), First Horizon Corp(NYSE:FHN), Oak Street Health Inc(OSH), and Elliott Opportunity II Corp(NYSE:EOCW). The firm primarily invests in the Financial Services and Energy sectors.
Overview of RF Acquisition Corp
RF Acquisition Corp is a blank check company based in Singapore. The company went public on March 24, 2022. Due to the nature of its business, the company's market capitalization data is not available. The company's current stock price stands at $10.64, representing a 1.33% increase since the transaction and a 5.98% increase since its IPO. The company's GF Score is 22/100, indicating a poor future performance potential.
Stock Performance and Valuation
Since the start of the year, RF Acquisition Corp's stock has seen a 4.47% increase. However, the company's Financial Strength and Profitability Rank stand at 6/10 and 2/10 respectively, indicating room for improvement. The company's Growth Rank data is not available.
Financial Health of RF Acquisition Corp
RF Acquisition Corp's cash to debt ratio is 0.15, while its Return on Equity (ROE) and Return on Assets (ROA) stand at 0.48 and 0.41 respectively. The company's interest coverage data is not available, indicating potential risks in its ability to meet interest payments on outstanding debt.
Stock's Momentum
The company's RSI 5 Day, RSI 9 Day, and RSI 14 Day stand at 67.05, 70.73, and 71.49 respectively. The Momentum Index 6 - 1 Month and Momentum Index 12 - 1 Month are 1.36 and 4.19 respectively, indicating a positive momentum in the stock's price.
Conclusion
In conclusion, First Trust Capital Management L.P. (Trades, Portfolio)'s recent acquisition of RF Acquisition Corp shares represents a significant addition to its portfolio. Despite RF Acquisition Corp's low GF Score and profitability rank, the stock has shown positive momentum and has experienced a price increase since its IPO. This transaction highlights the firm's confidence in the future prospects of RF Acquisition Corp. However, investors should keep an eye on the company's financial health and stock performance for potential risks and opportunities.
This article first appeared on GuruFocus.
