Point 72 fund manager Steven Cohen (Trades, Portfolio) disclosed March 15 that he added 63.77% to his stake in US Concrete Inc. (USCR, Financial).
Transaction highlights
Cohen invested in 337,927 shares of US Concrete for $63 per share. The manager currently has 867,883 shares, approximately 5.2% of the company’s total shares outstanding.
Company background
US Concrete operates in two business segments, ready-mixed concrete and aggregate products. According to its 2017 annual report filing, the company routinely won contracts for “prestigious” projects, including Facebook Inc.’s (FB, Financial) NA-4 Data Center in Fort Worth, Texas, Alphabet Inc.’s (GOOG, Financial)(GOOGL, Financial) Bayview Campus in Mountain View, California, and Toyota Motor Corp.’s (TM, Financial) North American Headquarters in Plano, Texas. US Concrete mentioned that such projects have high margins due to “rigorous specifications, increased complexity, high customization requirements and significant volume capacity needs.”
GuruFocus ranks US Concrete’s profitability 7 out of 10 primarily due to expanding operating margins and a three-year revenue growth rate that outperforms 90% of global competitors. Despite this, the company has several red flags, including high leverage and asset growth higher than revenue growth.
See also
Cohen has approximately 5.9% of his portfolio in the materials sector. Other positions include Vulcan Materials Co. (VMC, Financial) and Steel Dynamics Inc. (STLD, Financial).
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Disclosure: No positions.
