Data analytics firm Cloudera is in trouble with its stock price falling by 40% so far this year but investor Carl Icahn believes a comeback is possible. His Icahn Capital announced it has taken a 12.6% stake in the firm.
Here is an excerpt from an article published in GuruFocus.com
According to GuruFocus Real-Time Picks, a Premium feature, Icahn invested in 17.6 million shares of the Palo Alto, California-based software company on July 22, allocating 0.43% of the equity portfolio to the holding. The stock traded for an average price of $5.85 per share.
Reuters reported the renowned guru, who is known for taking activist positions in undervalued, struggling companies and working with management to unlock value for shareholders, said he may also seek seats on Cloudera’s board.
The software company, which provides a cloud-based platform for data engineering, data warehousing, machine learning and analytics, has a $1.79 billion market cap; its shares were trading around $6.55 on Friday with a price-book ratio of 1.16 and a price-sales ratio of 2.14. GuruFocus estimates the stock has tumbled 40% year to date.
Cloudera recorded first-quarter results on June 5, posting a net loss of 38 cents per share on $187.5 million in revenue. Subscription revenue was $154.8 million. It is slated to report second-quarter earnings on Sept. 4.
The software company also announced CEO Tom Reilly’s retirement, naming Chairman Martin Coal as interim CEO.