Clifford Sosin, a significant shareholder of Cardlytics, Inc. (NASDAQ:CDLX), a company specializing in computer programming and data processing, has recently made a notable investment in the form of convertible senior notes. On March 27, 2024, Sosin acquired $20 million in 4.25% Convertible Senior Notes due 2029.
This transaction indicates Sosin's continued investment in the company's future, as these convertible notes can potentially be converted into shares of common stock under certain conditions. The notes are held directly by Sosin Master, L.P. and CSWR Partners, L.P., entities for which Sosin, through his role as the Managing Member of CAS Investment Partners, LLC, may be deemed to beneficially own the securities.
The convertible notes provide the holder the right to convert into shares of Cardlytics' common stock at an initial rate of 55.4939 shares per $1,000 principal amount, which is subject to adjustments as outlined in the indenture. However, since Cardlytics has the option to settle conversions in cash, shares, or a combination thereof, the beneficial ownership of the common stock underlying the notes is not attributed to Sosin, Sosin Master, or CSWR for the purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.
As of the reporting date, following the transaction, Sosin's entities hold a total of 6,373,676 shares of Cardlytics' common stock. The investment in the convertible notes demonstrates a significant financial commitment to the company's growth and potential, reflecting confidence in the long-term value of Cardlytics.
InvestingPro Insights
Cardlytics, Inc. (NASDAQ:CDLX) has been a company of interest to investors, particularly following the recent purchase of convertible senior notes by significant shareholder Clifford Sosin. While the transaction underscores a strong belief in the company's future, a look at the real-time metrics from InvestingPro provides a broader perspective on the company's current financial health and market performance.
An InvestingPro Data snapshot reveals that Cardlytics has a market capitalization of $695.76 million and a Price / Book ratio for the last twelve months as of Q4 2023 at 5.16, which indicates that the stock is trading at a premium relative to its book value. Despite not being profitable over the last year, with a negative P/E ratio of -4.01, analysts have forecasted profitability for the company this year. Additionally, the revenue growth for the last twelve months as of Q4 2023 stood at a modest 3.57%, with a more robust quarterly growth rate of 8.08% in Q4 2023.
InvestingPro Tips highlight the stock's high price volatility and significant return over the last year, with a 408.42% one-year price total return. This volatility may be of particular interest to investors like Sosin, who might be seeking both long-term value and short-term trading opportunities. Moreover, the company's liquid assets exceed its short-term obligations, providing a measure of financial stability.
For investors intrigued by the recent moves in Cardlytics' stock and seeking more detailed analysis, there are additional InvestingPro Tips available. These tips delve deeper into the company's financials and market performance, offering a comprehensive understanding that could inform investment decisions. Access these insights and take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
With the next earnings date scheduled for May 1, 2024, and the InvestingPro Fair Value estimated at $17.11, investors will be closely monitoring Cardlytics' performance to see if the company can capitalize on its growth potential and turn analyst predictions into reality.
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