Mangrove Partners Master Fund, 10% owner of Calamos Asset Management Inc. (CLMS, Financial), purchased 346,010 shares of the company in 18 separate transactions in January.
The price per share paid ranged from $8.30 to $8.38 from Jan. 18 to Jan. 30. According to the SEC, the fund now owns 2,382,090 shares.
Calamos is an asset management company that provides investment advisory services to individuals and institutional investors through open-end funds, closed-end funds, separate accounts, offshore funds and partnerships.
The company has a market cap of $172.66 million, a price-earnings (P/E) ratio of 210.25, a price-book (P/B) ratio of 0.92 and a dividend yield of 7.13%.
According to GuruFocus, Calamos has a 6 out of 10 financial strength rating with no debt. It has an equity asset ratio of 0.23. The Piotroski F-Score of 5 indicates the company’s financial situation is typical for a stable company. The Beneish M-score of -2.99 suggests the company is not a manipulator of its financial statements.
Calamos has a 5 out of 10 profitability and growth rating with an operating margin of 9.99%, a net margin of 0.45%, a return on equity (ROE) of 0.47%, three-year revenue growth of -7% and a return on assets (ROA) of 0.12%.
GuruFocus has detected three severe warning signs that investors must pay attention to.
- The company's Altman Z-score is 1.69, which indicates it is in the distress zone. This implies the company could file for bankruptcy within the next two years.
- Calamos' revenue per share growth rate was -6% per year over the previous five years.
- The operating margin has been in five-year decline. The average rate of decline per year is -18.40%.
The company also has some positive metrics.
- Calamos has tremendous earnings power valued at $109.61.
- The company is paying a dividend yield of 7.13%, ranking it higher than 79% of competitors in the global asset management industry.
- It has no debt.
Below is a Peter Lynch chart that shows it is trading above its intrinsic value.
Disclosure: Author does not own any shares of this company.
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