In a recent series of transactions, Fund 1 Investments, LLC and related entities Pleasant Lake Onshore Feeder Fund LP and Pleasant Lake Partners LLC have collectively purchased a significant amount of stock in Citi Trends Inc (NASDAQ:CTRN), a retail-apparel company. The buying spree occurred over several days, with the entities acquiring shares valued at a total of approximately $605,432.
The transactions took place between May 13 and May 15, 2024, with prices for the shares ranging from $23.4819 to $24.2149. On the first day, 5,481 shares were acquired at $23.4819 each, followed by 4,000 shares at $24.1937 on the next day. The buying continued on the final day with 8,000 shares at $23.9301 each and an additional 7,785 shares at $24.2149.
Following these purchases, the entities' combined ownership in Citi Trends Inc has increased significantly, demonstrating a strong investment position. It's worth noting that the shares reported are held for the benefit of private investment vehicles, including Pleasant Lake Onshore Feeder Fund, LP, for which Pleasant Lake Partners LLC serves as investment adviser. Fund 1 Investments, LLC acts as the managing member of Pleasant Lake Partners LLC.
The filings indicated that the shares are held indirectly, and the beneficial ownership of the shares is disclaimed except to the extent of each reporting person's pecuniary interest. These transactions were signed off by Benjamin C. Cable, Chief Operating Officer for the entities involved.
Investors often monitor such filings for insights into the actions of significant shareholders and investment advisers. The recent purchases by Fund 1 Investments and associated funds in Citi Trends Inc reflect a notable investment move within the retail sector.
InvestingPro Insights
As Fund 1 Investments, LLC and its related entities increase their stake in Citi Trends Inc (NASDAQ:CTRN), investors are keen to understand the financial health and future prospects of the company. A glimpse into Citi Trends' financial metrics and analyst insights via InvestingPro provides a deeper context to these transactions.
InvestingPro Data indicates that Citi Trends has a market capitalization of $207.7 million, signaling a moderate size within the retail-apparel market. The company's Price to Earnings (P/E) ratio stands at -16.71, reflecting investors' concerns about its profitability in the near term. Additionally, the company's revenue decreased by 5.92% over the last twelve months as of Q4 2024, which may be a point of consideration for investors looking at the company's growth trajectory.
Among the InvestingPro Tips, it's noteworthy that Citi Trends is experiencing volatility in its stock price movements. This could be indicative of market uncertainty or investor reactions to company-specific news. The company is also not expected to be profitable this year, and it has not paid dividends to shareholders, which may influence the investment strategies of income-focused investors.
Nonetheless, Citi Trends also presents a high shareholder yield, which could be attractive to those looking for capital returns. However, investors should be aware that two analysts have revised their earnings expectations downwards for the upcoming period, which may suggest caution regarding the company's near-term financial performance.
For investors interested in a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CTRN. These tips delve into aspects such as the company's ability to make interest payments on debt and its free cash flow yield. To access these insights and more, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. In total, there are 9 additional InvestingPro Tips that could provide valuable guidance for those considering an investment in Citi Trends Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.