Influential financier George Soros (Trades, Portfolio) increased his holding of ServiceSource International Inc. (SREV, Financial) by 654.3% on Dec. 3, as the price hovered near its lowest price since its 2011 initial public offering, according to GuruFocus data.
Soros’ buy boosts his stake to 7,593,209 shares, from his previous position of 1,006,666 shares. His average purchase price was $2.87 per share. The stock price of ServiceSource dived 41% over the past year on lower sales at the company and traded Thursday around $3.33 per share.
ServiceSource is a $297.5 million market cap provider of outsourced client services and revenue enhancement through its revenue-as-a-service platform. Its markets include the software, cloud and health care fields. Soros initiated a position in the company in the second quarter of 2016 and added shares as recently as the first and second quarters of 2017.
ServiceSource posted its third consecutive quarter of revenue declines in November as the company’s sales slipped 7% from the same quarter the previous year to $62.5 million. The figure came as expansions and new business failed to make up for loss of business and lower production for certain customers.
For the fourth quarter, ServiceSource has said that it may see strain in its top line continue, forecasting for revenue in the range of $61 million to $64 million, compared to reported sales of $68.7 million a year ago.
"While Q4 revenue will be muted from our earlier expectations, we continue to see improvements in the underlying long-term fundamentals of the business,” Christopher M. Carrington, CEO of ServiceSource, said in a statement.
ServiceSource also has a price-book ratio near a one-year low at 2.5 and a price-sales ratio near a two-year low at 1.13.
George Soros (Trades, Portfolio)’ family office Soros Fund Management has roughly $26 billion in assets. The firm’s portfolio contains 219 stocks and is bullish on communications services, with 27% of positions hailing from the sector.
He holds 42 positions in the same domain as Service Source, application software, the largest of which were TiVo Corp. (TIVO, Financial), Exa Corp. (EXA, Financial) and Take-Two Interactive Software Inc. (TTWO, Financial) at the end of the third quarter.
