BlackRock Inc. (Trades, Portfolio), a leading global investment management corporation, recently made a significant addition to its portfolio. The firm acquired a substantial number of shares in Sendas Distribuidora SA (ASAI, Financial), a prominent player in the consumer goods business in Brazil. This article delves into the details of this transaction, profiles both BlackRock Inc. (Trades, Portfolio) and Sendas Distribuidora SA, and analyzes the potential implications of this investment for value investors.
Details of the Transaction
On July 31, 2023, BlackRock Inc. (Trades, Portfolio) added 147,005,842 shares of Sendas Distribuidora SA to its portfolio, bringing its total holding to 147,278,539 shares. This transaction, which was executed at a trade price of $14.36 per share, had a 0.06% impact on BlackRock's portfolio. Following this acquisition, BlackRock now holds a 10.90% stake in Sendas Distribuidora SA.
Profile of BlackRock Inc. (Trades, Portfolio)
Founded in 1988, BlackRock Inc. (Trades, Portfolio) is a renowned investment management corporation that operates through a vast network of subsidiaries. The firm's investment philosophy is rooted in risk management, with its platform monitoring about 7% of the world's total financial assets. As of the date of this article, BlackRock Inc. (Trades, Portfolio) holds equity worth $3,388.31 trillion across 5,334 stocks, with a significant presence in the technology and healthcare sectors. The firm's top holdings include Apple Inc., Amazon.com Inc., Alphabet Inc., Microsoft Corp., and NVIDIA Corp.
Profile of Sendas Distribuidora SA
Sendas Distribuidora SA, listed under the symbol ASAI, is a key player in the consumer goods business in Brazil. The company, which went public on March 1, 2021, operates a single segment business model, selling a wide range of products including grocery, food, beverages, hygiene, and cleaning products. As of the date of this article, Sendas Distribuidora SA has a market capitalization of $3.9 billion and a stock price of $14.46. The company's PE percentage stands at 22.11.
Analysis of Sendas Distribuidora SA's Stock
Since its IPO, Sendas Distribuidora SA's stock has gained 18.04%, despite a year-to-date decline of 14.69%. The company's GF Score is 48/100, indicating a moderate future performance potential. Sendas Distribuidora SA's financial strength is ranked 5/10, while its profitability rank and growth rank stand at 7/10 and 9/10, respectively.
Sendas Distribuidora SA's Financial Performance
Sendas Distribuidora SA's interest coverage is 1.48, ranking 228th in the retail - defensive industry. The company's return on equity (ROE) is 23.46%, while its return on assets (ROA) is 2.34%. Over the past three years, Sendas Distribuidora SA has seen a revenue growth of 24.40% and an EBITDA growth of 16.00%.
Other Gurus' Investment in Sendas Distribuidora SA
BlackRock Inc. (Trades, Portfolio) is not the only investment firm showing interest in Sendas Distribuidora SA. Ruane, Cunniff & Goldfarb L.P. is currently the largest guru holding Sendas Distribuidora SA's shares. Additionally, Charles Brandes (Trades, Portfolio) also holds shares in the company.
Conclusion
BlackRock Inc. (Trades, Portfolio)'s recent acquisition of Sendas Distribuidora SA's shares is a significant move that could potentially influence the stock's performance and the firm's portfolio. With Sendas Distribuidora SA's solid growth rank and profitability rank, this investment could offer substantial returns for BlackRock Inc. (Trades, Portfolio) and other value investors. However, as with any investment, it is crucial to conduct thorough research and consider various factors before making a decision.
