The $28.1 billion firm Baron Funds has declared a stake in Sillicon Valley clean energy provider Bloom Energy (BE, Financial) days after the company went public, according to GuruFocus Real Time Picks.
Baron Funds, a New York-based asset manager founded by Ron Baron (Trades, Portfolio), bought 2,344,673 shares of Bloom Energy, representing an 11.33% stake. Purchased for around $23.05 per share on July 31, the cost totaled roughly $54.05 million.
Shares of Bloom Energy have since risen to $27.94 each as of Tuesday afternoon.
The filing detailing the transaction came after Bloom Energy became a public company on July 25 at an initial offering price of $15 per share that raised $284.4 million. Baron Funds’ stake places it among the largest shareholders, which include former Secretary of State Colin Powell, an owner of $5 million in class A shares.
The company boasts high-profile leadership, with former New Hampshire Senator Kelly Ayotte and former Cisco CEO and Chairman John Chambers joining its board of directors in the first quarter.
The Silicon Valley “unicorn” is aiming to transform the $2.4 trillion electric power market through its invention, the Bloom Energy Server, a stationary clean and sustainable energy generator. The product works by converting natural gas or biogas into electricity through an electrochemical process involving solid oxide fuel cell technology that produces 250 kilowatts of power, or enough to power a standard big-box retail store.
Some of Bloom Energy’s clients include AT&T (T), The Home Depot (HD) and Caltech.
Regarding its financial situation, Bloom Energy reported $376 million in revenue in 2017, an increase from $208.5 million. It also posted a net loss of $262.6 million, or $2.81 per share, for 2017 and $279.7 million, or $3.18 per share, in 2016.
Balance sheet cash totaled $103.8 million at the end of 2017, with long-term debt registering $815.6 million.
Bloom Energy reported second-quarter 2018 results Tuesday afternoon. Revenue soared 95% from a year earlier to $168.9 million, at the high end of its estimates. Growth was driven by higher acceptances, which occur when a system is switched on and generates hour for at least 24 hours. The acceptance prompts the customer order to leave the backlog and accrue to the revenue line of its profit and loss statement.
Bloom Energy’s net loss totaled $50.19 million versus $67.597 million a year earlier. The company ended the quarter with $930.12 million in debt and $91.596 million in cash.
Shares of Bloom Energy descended 1.64% following the earnings release, trading around $27.45 in after-hours.
