On July 17, 2023, ORION RESOURCE PARTNERS (USA) LP, a prominent investment firm, reduced its stake in Ivanhoe Electric Inc. This article aims to provide an in-depth analysis of this transaction, the profiles of both the guru and the company, and the potential implications for investors.
Overview of the Transaction
ORION RESOURCE PARTNERS (USA) LP sold 1,000,000 shares of Ivanhoe Electric Inc at a price of $16.41 per share. This transaction resulted in a 20.18% decrease in their holdings, reducing their total shares to 3,954,383. The impact on their portfolio was -3.92%, bringing the position of Ivanhoe Electric Inc in their portfolio to 16.13%. This move could be a strategic decision based on the company's performance or market conditions.
Profile of the Guru
ORION RESOURCE PARTNERS (USA) LP, located at 1045 AVENUE OF THE AMERICAS, NEW YORK, NY, holds three stocks in its portfolio, with a total equity of $419 million. Their top holdings include Sandstorm Gold Ltd(SAND, Financial), i-80 Gold Corp(IAUX, Financial), and Ivanhoe Electric Inc(IE, Financial). The firm's investment philosophy is centered around identifying and capitalizing on lucrative opportunities in the market.
Profile of Ivanhoe Electric Inc
Ivanhoe Electric Inc, a Canada-based company, was listed on June 28, 2022. The company focuses on mineral exploration and development, primarily in the United States. It operates in three segments: Critical Metals, Data Processing, and Energy Storage. The company's market capitalization stands at $1.69 billion.
Stock Performance and Valuation
As of the date of the transaction, Ivanhoe Electric Inc's stock price was $16.41. The company's PE percentage is not available, and the GF Valuation cannot be evaluated due to insufficient data. The stock has seen a gain of 39.66% since its IPO and a year-to-date increase of 38.36%. However, the GF Score of 20 suggests poor future performance potential.
Stock's Future Performance Potential
Despite the low GF Score, Ivanhoe Electric Inc's balance sheet rank is 6, indicating a relatively stable financial position. However, the company's profitability and growth ranks are low, suggesting potential challenges in these areas. The company's Z Score of 13.45 and cash to debt ratio of 2.83 reflect a healthy financial status.
Stock's Technical Indicators
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 84.65, 76.42, and 70.83 respectively, indicating a strong upward momentum. The Momentum Index 6 - 1 Month and Momentum Index 12 - 1 Month are 8.81 and 85.02 respectively, further supporting the stock's positive momentum.
Conclusion
In conclusion, ORION RESOURCE PARTNERS (USA) LP's decision to reduce its stake in Ivanhoe Electric Inc could be a strategic move based on the company's performance and market conditions. Despite some challenges, Ivanhoe Electric Inc shows promising signs in terms of financial health and momentum. Investors should keep a close eye on this stock and the guru's future transactions.
