Overview of Donald Smith & Co (Trades, Portfolio).'s Recent Trade
Donald Smith & Co (Trades, Portfolio)., a notable investment firm, has recently made a significant adjustment to its holdings in Capital Product Partners LP (CPLP, Financial). On December 31, 2023, the firm reduced its stake in the company by 297,986 shares, resulting in a 16.74% decrease in its previous holding. This transaction has altered the firm's portfolio, with the trade having a -0.15% impact. The shares were traded at a price of $14.20 each, and post-transaction, Donald Smith & Co (Trades, Portfolio). holds 1,481,914 shares of Capital Product Partners LP, which now represents 0.72% of their portfolio and 2.69% of the company's shares outstanding.
Profile of Donald Smith & Co (Trades, Portfolio).
Donald Smith & Co (Trades, Portfolio). was founded by the late Donald G. Smith, who served as the Chief Investment Officer from 1980 until his passing in 2019. The firm is known for its deep-value investment strategy, focusing on bottom-up analysis and targeting out-of-favor companies trading at discounts to tangible book value. With a portfolio of 61 stocks and top holdings in companies like AerCap Holdings NV (AER, Financial) and M/I Homes Inc (MHO, Financial), Donald Smith & Co (Trades, Portfolio). manages an equity portfolio valued at $2.91 billion, with a strong presence in the Financial Services and Basic Materials sectors.
Capital Product Partners LP at a Glance
Capital Product Partners LP, based in Greece, has been publicly traded since its IPO on March 30, 2007. The company operates within the transportation industry, specializing in the seaborne transportation of various cargoes, including crude oil, refined oil products, and dry cargo. With a diverse fleet of vessels, Capital Product Partners LP serves a global clientele under various charter agreements.
Transaction Specifics and Portfolio Impact
The recent trade by Donald Smith & Co (Trades, Portfolio). has slightly reduced the firm's exposure to Capital Product Partners LP, with the stock now accounting for 0.72% of its total portfolio. At the time of the trade, the stock was priced at $14.20, which is modestly undervalued compared to the current stock price of $18.03 and the GF Value of $23.22. Since the trade, the stock has seen a gain of 26.97%, indicating a positive trajectory post-transaction.
Performance and Valuation Metrics
Capital Product Partners LP currently boasts a market capitalization of $992.356 million and a PE ratio of 6.63%. The stock is rated as modestly undervalued with a GF Score of 88/100, suggesting good outperformance potential. Since its IPO, the stock has experienced a price change of -82.03%, but year-to-date, it has gained 25.64%.
Financial Health and Growth Prospects
The company's financial health is reflected in its Financial Strength rank of 3/10, with a Piotroski F-Score of 4, indicating some concerns. However, Capital Product Partners LP has a strong Profitability Rank of 8/10 and a Growth Rank of 9/10, showcasing its potential for future earnings growth. The company's balance sheet shows a cash to debt ratio of 0.06, and its interest coverage stands at 1.64.
Market Position and Momentum
In the transportation industry, Capital Product Partners LP holds a competitive position with a Momentum Rank of 8/10. The stock's RSI 14-day indicator is at 64.51, suggesting a neutral to positive momentum in the market.
Comparative Analysis
Donald Smith & Co (Trades, Portfolio). remains the largest guru shareholder in Capital Product Partners LP, with a significant holding percentage. This position reflects the firm's confidence in the stock's value and growth prospects, despite the recent reduction in shares.
Transaction Analysis
The recent transaction by Donald Smith & Co (Trades, Portfolio). indicates a strategic adjustment in the firm's portfolio. While the reduction in shares has slightly decreased the firm's stake in Capital Product Partners LP, the stock's subsequent performance and current valuation metrics suggest that the firm may still see potential in the company's future. Investors will be watching closely to see how this trade influences both the stock's trajectory and Donald Smith & Co (Trades, Portfolio).'s investment outcomes.
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.
