Point72 Asset Management leader Steven Cohen revealed a 5.28% stake in Inogen Inc. on Nov. 28.
To generate superior risk-adjusted returns, the billionaire investor’s Connecticut-based hedge fund utilizes long, short, macro and systematic strategies.
Steven “Steve” Cohen is the founder of Point72 Asset Management, which he started after closing his former firm, SAC Capital, which was accused of insider trading by the SEC. Photographer: Simon Dawson/BloombergBLOOMBERG NEWS
According to GuruFocus real-time picks, Cohen picked up 1.14 million shares of the Goleta, California-based company for an average price of $141.24 per share, allocating 0.66% of the equity portfolio to the position. He previously sold out of the stock in the third quarter of 2017.
The medical device manufacturer, which makes portable oxygen concentrators for people with chronic respiratory conditions, has a $3.18 billion market cap; its shares were trading around $152.24 on Friday with a price-earnings ratio of 80.83, a price-book ratio of 10.89 and a price-sales ratio of 9.86.
The Peter Lynch chart suggests the stock is overpriced since it is trading higher than its fair value.
In its third-quarter financial report, which was released in early November, Inogen posted adjusted earnings of 73 cents per share on $95.3 million in revenue, a 38% increase from the prior-year quarter. The results surpassed analyst expectations.
Inogen’s financial strength and profitability and growth were both rated 9 out of 10 by GuruFocus. As a result of having no long-term debt, the company has a comfortable level of interest coverage. In addition, the Altman Z-Score of 30.19 indicates it is in good financial standing. The medical device manufacturer is also supported by an expanding operating margin, steady returns and a high Piotroski F-Score of 8, which means business conditions are healthy.
With his purchase, Cohen became the company’s largest guru shareholder. Other gurus who hold the stock are Jim Simons’ Renaissance Technologies, Pioneer Investments, Chuck Royce, Paul Tudor Jones and Caxton Associates.
Portfolio composition
The guru’s $24.25 billion equity portfolio, which is composed of 979 stocks, is heavily invested in the consumer cyclical, health care, technology and energy sectors as of Sept. 30.
Other medical device companies he owns include Zimmer Biomet Holdings Inc., Insulet Corp., Intersect ENT Inc., Nuvectra Corp., Ra Medical Systems Inc., Abbott Laboratories, Align Technology Inc., Edward Lifesciences Corp. and Establishment Labs Holdings Inc.
This article originally appeared HERE.