FMR LLC Adjusts Stake in Denbury Inc
Overview of FMR LLC (Trades, Portfolio)'s Recent Trade
On October 31, 2023, FMR LLC (Trades, Portfolio), a prominent investment firm, made a significant adjustment to its holdings in Denbury Inc (NYSE:DEN), an independent energy company. The firm reduced its position by 550,032 shares, resulting in a total ownership of 1,373,426 shares in the company. This trade has altered FMR LLC (Trades, Portfolio)'s stake in Denbury Inc by -28.60%, reflecting a subtle shift in the firm's investment strategy regarding the energy sector.
FMR LLC (Trades, Portfolio)'s Investment Profile
Founded in 1946 by Edward C. Johnson II, FMR LLC (Trades, Portfolio), also known as Fidelity, has a storied history of risk-taking and a focus on growth potential. The firm's investment philosophy is rooted in the belief that mutual funds should be managed based on individual decisions, a principle that has guided Fidelity's approach to value investing. With a diverse range of products, including notable mutual funds and ETFs, Fidelity has grown to manage a staggering equity of $1,154.67 trillion, with a strong presence in the technology and healthcare sectors.
Denbury Inc at a Glance
Denbury Inc, operating under the stock symbol DEN, is a key player in the oil and gas industry, particularly known for its carbon dioxide enhanced oil recovery (CO2 EOR) and carbon capture, utilization, and storage (CCUS) initiatives. Since its IPO on September 21, 2020, Denbury has focused on the Gulf Coast and Rocky Mountain regions, generating revenue through various segments including CO2 sales, natural gas, and oil. The company's market capitalization stands at $4.56 billion, with a stock price of $88.66 as of the latest data.
Impact of the Transaction on FMR LLC (Trades, Portfolio)'s Portfolio
The recent trade by FMR LLC (Trades, Portfolio) has had a minimal impact on its portfolio, with the position in Denbury Inc now representing a mere 0.01%. Despite the reduction, FMR LLC (Trades, Portfolio) still holds a significant 2.66% of the company's shares. The trade price of $88.89 is closely aligned with the current stock price and the GF Value, indicating a strategic move by the firm.
Denbury Inc's Market Performance
Denbury Inc's financial health is robust, with a Financial Strength rank of 7/10 and a Profitability Rank of 8/10. The company's growth rank is also impressive at 7/10. These metrics, combined with a GF Score of 87/100, suggest a strong performance potential for Denbury Inc's stock.
Comparative Analysis with Other Investors
Soros Fund Management LLC is another notable investor in Denbury Inc, holding a significant share percentage. Other investors include Jefferies Group (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio). FMR LLC (Trades, Portfolio)'s position, while reduced, remains substantial when compared to these other investors.
Valuation and Stock Metrics of Denbury Inc
Denbury Inc's stock is currently trading at a PE percentage of 9.90, indicating profitability. The GF Value Rank stands at 5/10, with the stock being fairly valued at a GF Value of $90.35. The stock's momentum is strong, with a Momentum Rank of 10/10, suggesting a positive outlook for future performance.
Concluding Insights on FMR LLC (Trades, Portfolio)'s Trade
FMR LLC (Trades, Portfolio)'s recent transaction in Denbury Inc reflects a calculated adjustment within its portfolio. With Denbury's stock being fairly valued and the company's strong financial and growth metrics, FMR LLC (Trades, Portfolio)'s continued investment, albeit at a reduced stake, indicates a belief in the company's value proposition and market outlook. Investors will be watching closely to see how this trade influences both FMR LLC (Trades, Portfolio)'s portfolio and Denbury Inc's stock performance in the energy sector.
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.
