Fund 1 Investments, LLC Boosts Stake in Citi Trends Inc
Fund 1 Investments, LLC (Trades, Portfolio), a prominent investment firm, has recently increased its holdings in Citi Trends Inc (NASDAQ:CTRN), a leading retailer of urban fashion apparel and accessories in the United States. This article will delve into the details of the transaction, provide an overview of both entities, and analyze the potential impact of this move on their respective portfolios.
Details of the Transaction
The transaction took place on October 30, 2023, with Fund 1 Investments, LLC (Trades, Portfolio) adding 34,400 shares to its portfolio. This move has increased the firm's holdings in Citi Trends Inc by 3.66%, making a 0.32% impact on its portfolio. The shares were acquired at a price of $22.76 each, bringing the firm's total holdings in Citi Trends Inc to 973,768 shares. This represents 9.1% of the firm's portfolio and 11.38% of Citi Trends Inc's total shares.
Profile of Fund 1 Investments, LLC (Trades, Portfolio)
Fund 1 Investments, LLC (Trades, Portfolio), based in Rincon, Puerto Rico, is a well-established investment firm with a diverse portfolio. The firm currently holds 66 stocks, with a total equity of $243 million. Its top holdings include Amazon.com Inc (NASDAQ:AMZN), Children's Place Inc (NASDAQ:PLCE), Tile Shop Holdings Inc (NASDAQ:TTSH), Tilly's Inc (NYSE:TLYS), and J.Jill Inc (NYSE:JILL). The firm primarily invests in the Consumer Cyclical and Consumer Defensive sectors.
Overview of Citi Trends Inc
Citi Trends Inc, listed under the symbol CTRN, is a US-based retailer specializing in urban fashion apparel and accessories. The company, which went public on May 18, 2005, offers a wide range of products, including fashion sportswear for men, women, and children, as well as accessories, home products, beauty products, books, and toys. As of October 31, 2023, the company has a market capitalization of $197.230 million and a stock price of $23.03. The company's PE percentage stands at 9.56, indicating a profitable operation. According to GuruFocus, the stock is modestly undervalued with a GF Value of $32.41 and a Price to GF Value ratio of 0.71.
Analysis of Citi Trends Inc's Stock Performance
Since the transaction, Citi Trends Inc's stock has gained 1.19%, and since its IPO, the stock has increased by 35.87%. However, the stock has seen a year-to-date decline of 14.16%. The company's GF Score is 91/100, indicating a high outperformance potential. The company also has a strong Financial Strength rank of 5/10, a Profitability Rank of 8/10, and a Growth Rank of 9/10. The company's Piotroski F-Score is 4, and its Altman Z score is 2.87, indicating financial stability.
Citi Trends Inc's Industry Performance
Citi Trends Inc operates in the Retail - Cyclical industry. The company's Return on Equity (ROE) is 12.63, and its Return on Assets (ROA) is 3.69. The company's gross margin growth is 1.10, while its operating margin growth is -2.40. These figures indicate a mixed performance in the industry.
Citi Trends Inc's Growth Over the Years
Over the past three years, Citi Trends Inc has seen a revenue growth of 13.10%, EBITDA growth of 52.80%, and earning growth of 72.00%. The company's RSI 5 Day is 27.25, RSI 9 Day is 42.67, and RSI 14 Day is 49.04. The company's momentum index 6 - 1 month is 28.74, and momentum index 12 - 1 month is -1.29.
Conclusion
In conclusion, Fund 1 Investments, LLC (Trades, Portfolio)'s recent acquisition of additional shares in Citi Trends Inc is a strategic move that could potentially enhance the firm's portfolio. Citi Trends Inc's strong financial performance, growth potential, and undervalued status make it an attractive investment. However, the impact of this transaction on the stock and the firm's portfolio will depend on various factors, including market conditions and the company's future performance.
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.
