Point72 Asset Management founder and CEO Steven Cohen (Trades, Portfolio) initiated a position in Match Group Inc. (MTCH, Financial) on April 3.
Founded in 2014 as a successor to SAC Capital Advisors, Cohen’s firm uses a bottom-up approach to find discretionary long-short equities. His most recently released portfolio consists of 668 stocks valued at around $14.2 billion.
The billionaire investor purchased 2,058,327 shares for an average price of $16.55 per share, giving it 0.24% portfolio space.
Match Group runs popular dating sites, including Match.com, PlentyofFish, OkCupid, Tinder, Meetic, Twoo and several others. The company also offers a nondating business that provides test preparation and tutoring services.
Headquartered in Dallas, the company has a market cap of $4.3 billion; its shares were trading around $16.74 on Wednesday with a price-earnings (P/E) ratio of 25.7, a forward P/E ratio of 18.7, a price-book (P/B) ratio of 8.6 and a price-sales (P/S) ratio of 3.7.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Match’s financial strength 5 of 10. While its Piotroski F-Score of 5 indicates the company is in stable condition, its Altman Z-Score of 2.8 suggests it is experiencing some financial stress. Both the cash-debt ratio of 0.22 and interest coverage ratio of 3.7 imply the company has trouble covering its debt.
The company’s profitability and growth was ranked 6 of 10 by GuruFocus. It has an operating margin of 25.02% and a net margin of 14.02%. The return on equity (ROE) and return on assets (ROA) outperform 95% and 71% of other companies in the global internet content and information industry. Similarly, its return on capital (ROC) outperforms 86% of competitors.
The company does not currently pay a dividend.
With his purchase, Cohen became the company’s largest guru shareholder with 0.8% of its outstanding shares. Manning & Napier Advisors Inc., Paul Tudor Jones (Trades, Portfolio) and George Soros (Trades, Portfolio) also hold the stock.
Other online media stocks Cohen holds include Facebook Inc. (FB, Financial), Yelp Inc. (YELP, Financial), Alphabet Inc. (GOOG, Financial)(GOOGL, Financial) and Yahoo Inc. (YHOO, Financial). Technology stocks have a weight of 11.9% in his portfolio.
Disclosure: I do not own any stocks mentioned in the article.
Start a free 7-day trial of Premium Membership to GuruFocus.
Also check out:- Steven Cohen Undervalued Stocks
- Steven Cohen Top Growth Companies
- Steven Cohen High Yield stocks, and
- Stocks that Steven Cohen keeps buying
- Manning & Napier Advisors Inc. Undervalued Stocks
- Manning & Napier Advisors Inc. Top Growth Companies
- Manning & Napier Advisors Inc. High Yield stocks, and
- Stocks that Manning & Napier Advisors Inc. keeps buying
