In a series of transactions, Corre Partners Management, LLC and its affiliated funds have increased their stake in Team Inc (NYSE:TISI), a provider of specialized industrial services, with purchases totaling around $324,000. The transactions, which took place over three consecutive days, reflect a bullish stance from the investment manager on the company's stock.
On March 19, 2024, Corre Opportunities Qualified Master Fund, LP, one of the funds managed by Corre Partners Management, acquired 20,342 shares of Team Inc at a price of $5.7079 per share. This transaction was followed by an additional purchase on March 20, where 30,000 shares were bought at a slightly higher price of $5.845 each. The buying spree continued into March 21, with a further acquisition of 5,250 shares, this time at the price of $6.2621 per share.
The series of buys over the three days resulted in a substantial addition to the funds' holdings in Team Inc. Prior to these transactions, Corre Opportunities Qualified Master Fund, LP held 970,601 shares, Corre Horizon Fund, LP had 249,942 shares, and Corre Horizon II Fund, LP owned 254,343 shares of common stock. Following the transactions, their respective holdings increased to 999,975 shares, 249,942 shares, and 260,219 shares.
These transactions are a clear indication of Corre Partners Management's confidence in Team Inc's future prospects. The purchases made by the funds were all executed indirectly, with the details and nature of ownership outlined in the footnotes of the SEC filing.
Investors often look to the buying and selling patterns of significant shareholders, such as investment funds and insiders, to gauge market sentiment towards a company's stock. In this case, the consecutive days of stock purchases by Corre Partners Management may be seen as a positive signal.
As of the last transaction date, the funds managed by Corre Partners Management collectively hold over 1.5 million shares of Team Inc, maintaining their position as a ten percent owner of the company. The management's actions suggest a strategic investment approach, with a focus on increasing their influence and stake in Team Inc.
InvestingPro Insights
Team Inc (NYSE:TISI) has recently seen significant investment activity from Corre Partners Management, as outlined in the article. To provide further context on the company's financial health and market performance, InvestingPro data and tips offer additional insights that may be relevant to investors considering TISI's stock.
The company operates with a substantial debt burden, which could raise concerns about its ability to meet interest payments. This is particularly relevant given the company's negative P/E ratio of -0.37, indicating that it was not profitable over the last twelve months as of Q4 2023. Despite a slight revenue growth of 2.67% in the same period, Team Inc's financial situation appears challenging, with a significant cash burn rate. Moreover, the stock has experienced considerable volatility, with a one-week price total return of 7.56%, highlighting the potential risks for investors.
On the other hand, Team Inc's liquid assets exceed its short-term obligations, suggesting some degree of financial flexibility. The company's market capitalization stands at 28.61 million USD, which is relatively small and could contribute to the stock's volatility. Additionally, the stock's price performance has been poor over the last decade, and it has taken a substantial hit over the last six months, with a price total return of -26.95%.
InvestingPro Tips indicate that while Team Inc may have some short-term financial resilience, its long-term profitability and stock performance raise concerns. Investors can find more insights and tips, including analysis on free cash flow yield and dividend payments, on InvestingPro. For those interested in a deeper dive, there are 11 additional InvestingPro Tips available for Team Inc, which can be accessed at https://www.investing.com/pro/TISI. To enhance your investing strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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