On September 21, 2023, Edenbrook Capital, LLC (Trades, Portfolio) added 10,846 shares of Brightcove Inc (BCOV, Financial) to its portfolio. The transaction was executed at a price of $3.43 per share, bringing the firm's total holdings in Brightcove to 6,287,982 shares. This acquisition represents a 0.17% change in shares and has a 0.01% impact on the firm's portfolio. The firm now holds a 4.02% position in Brightcove Inc, accounting for 14.54% of the company's outstanding shares.
About Edenbrook Capital, LLC (Trades, Portfolio)
Edenbrook Capital, LLC (Trades, Portfolio) is an investment firm based in Mt. Kisco, New York. The firm manages a portfolio of 12 stocks, with a total equity of $537 million. Its top holdings include Haynes International Inc(HAYN, Financial), Marchex Inc(MCHX, Financial), Magnite Inc(MGNI, Financial), Absolute Software Corp(ABST, Financial), and Cognyte Software Ltd(CGNT, Financial). The firm has a strong focus on the Technology and Communication Services sectors.
Overview of Brightcove Inc
Brightcove Inc (BCOV, Financial), a US-based company, made its initial public offering on February 17, 2012. The company provides cloud-based services for the video ecosystem, targeting media companies, broadcasters, publishers, and corporations. Brightcove's flagship product, Video Cloud, enables customers to publish and distribute video to Internet-connected devices. The company operates in two segments: Premium and Volume. As of September 23, 2023, Brightcove has a market capitalization of $142.728 million and a stock price of $3.3. However, the company's PE percentage is currently at 0, indicating a loss.
According to GuruFocus's valuation, Brightcove is a possible value trap, and investors should think twice before investing. The GF Value of the stock is $8.10, and the price to GF Value is 0.41. Since its IPO, the stock has declined by 77.24%, and the year-to-date price change ratio is -36.78%. The GF Score of the stock is 54 out of 100, indicating poor future performance potential.
Financial Health and Growth of Brightcove Inc
Brightcove's financial health is reflected in its Financial Strength rank of 5 out of 10 and a Z score of -0.42. The company's cash to debt ratio is 0.81, ranking 1886 in the Software industry. The company's Profitability Rank is 3 out of 10, with a return on equity (ROE) of -25.32 and a return on assets (ROA) of -11.05.
In terms of growth, Brightcove has a Growth Rank of 2 out of 10. The company's gross margin growth is 2.10, while its operating margin growth is 0. The company's revenue growth over the past three years is 1.30, ranking 1624 in the industry.
Stock Predictability and Momentum
Brightcove's predictability rank is currently not available. The stock's 5-day RSI is 11.50, the 9-day RSI is 19.88, and the 14-day RSI is 26.75. The momentum index for the past 6 months minus 1 month is -17.22, and for the past 12 months minus 1 month, it is -42.31.
Conclusion
In conclusion, Edenbrook Capital, LLC (Trades, Portfolio)'s recent acquisition of Brightcove Inc shares represents a significant addition to its portfolio. However, given Brightcove's current financial health and growth metrics, as well as its GF Value, investors should exercise caution. As always, potential investors are advised to conduct their own comprehensive research before making any investment decisions.
