Simcoe Capital Management, LLC (Trades, Portfolio), a New York-based investment firm, has recently adjusted its portfolio by reducing its stake in Donnelley Financial Solutions Inc. This article will delve into the details of the transaction, provide an overview of both Simcoe Capital Management and Donnelley Financial Solutions, and analyze the potential implications of this move for value investors.
Details of the Transaction
The transaction took place on August 28, 2023, with Simcoe Capital Management, LLC (Trades, Portfolio) reducing its holdings in Donnelley Financial Solutions Inc by 216,609 shares. This move resulted in a -6.65% change in the firm's holdings, impacting its portfolio by -1.3%. The shares were traded at a price of $47.13, leaving Simcoe Capital Management with a total of 3,038,258 shares in Donnelley Financial Solutions Inc. This represents 18.5% of the firm's portfolio and 10.36% of Donnelley Financial Solutions Inc's total shares.
Profile of Simcoe Capital Management, LLC (Trades, Portfolio)
Simcoe Capital Management, LLC (Trades, Portfolio) is an investment firm located at 6 East 43rd Street, 23rd Floor, New York, NY 10017. The firm's portfolio consists of 12 stocks, with a total equity of $784 million. Its top holdings include Warner Bros. Discovery Inc (WBD, Financial), Asbury Automotive Group Inc (ABG, Financial), Donnelley Financial Solutions Inc (DFIN, Financial), Jabil Inc (JBL, Financial), and SeaWorld Entertainment Inc (SEAS, Financial). The firm's preferred sectors are Consumer Cyclical and Financial Services. 
Overview of Donnelley Financial Solutions Inc
Donnelley Financial Solutions Inc (DFIN, Financial) is a global risk and compliance solutions company based in the USA. The company provides regulatory filing and deal solutions through its software-as-a-service, technology-enabled services, and print and distribution solutions. It operates in four segments: Capital Markets - Software Solutions, Capital Markets - Compliance and Communications Management, Investment Companies - Software Solutions, and Investment Companies - Compliance and Communications Management. The company's market capitalization stands at $1.43 billion, with a current stock price of $48.6 and a PE percentage of 17.74. 
Analysis of Donnelley Financial Solutions Inc's Stock
Donnelley Financial Solutions Inc's stock is currently significantly overvalued, with a GF Value of 32.33 and a Price to GF Value of 1.50. Since the transaction, the stock has gained 3.12%, and it has grown 116% since its IPO on September 21, 2016. The stock's year-to-date price change ratio is 23.57%.
Evaluation of Donnelley Financial Solutions Inc's Financial Health
Donnelley Financial Solutions Inc has a GF Score of 68/100, indicating a poor future performance potential. The company's Balance Sheet Rank is 6/10, its Profitability Rank is 7/10, and its Growth Rank is 4/10. The company's Piotroski F-Score is 6, its Altman Z Score is 3.66, and its Cash to Debt ratio is 0.08.
Other Gurus' Involvement in Donnelley Financial Solutions Inc
Other gurus who also hold shares in Donnelley Financial Solutions Inc include Mario Gabelli (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio). The largest guru holder of the traded stock is Fisher Asset Management, LLC.
Conclusion
In conclusion, Simcoe Capital Management, LLC (Trades, Portfolio)'s recent reduction in its stake in Donnelley Financial Solutions Inc is a significant move that could have implications for value investors. The transaction has reduced the firm's exposure to the stock, which is currently significantly overvalued. However, the stock's GF Score and other financial health indicators suggest that it may have poor future performance potential. As always, investors are advised to conduct their own thorough research before making investment decisions.
