Chase Coleman Builds Stake In Procore Technologies

Summary

  • Tech guru invested 7.43% of the shares.
  • The company went public in May.

Chase Coleman (trade, Portfolio), Founder of Tiger Global Management and one of the Julian Robertson (trade, Portfolio) s former “Tiger Cub” gave a stake of 7.43% in the newly listed Procore Technologies Inc. (PCOR, Financially) earlier this week.

The guru’s New York-based hedge fund is known for focusing on small-cap stocks and tech startups, having been an early investor in Facebook Inc.

FB
(FB, Financially) and Spotify Technology SA (JOB, Financially).

According to GuruFocus Real-time selection, a premium feature, Coleman invested in 9.5 million shares of the Carpinteria, California-based company on May 24, allocating 1.85% of the stock portfolio to that stake. The stock was trading at an average price of $ 86.21 per share on the day of the transaction.

Founded in 2003, the company offers cloud-based construction management software that enables customers to collaborate from anywhere using an internet-enabled device. In its prospectus, Procore noted that the lack of Internet, Wi-Fi, and mobile connectivity has slowed the technology’s adoption in the construction industry. Therefore, it seeks to change that by increasing efficiency and saving billions of dollars that would otherwise be spent on pens, paper, and other office equipment such as fax machines. The software enables users to keep track of costs and access project updates for any contractor working on site.

The company has a market capitalization of $ 10.32 billion; its shares were trading at around $ 81.44 on Friday, with a price to book ratio of 22.29 and a price to sell ratio of 45.99.

The price chart shows that since it went public on Jan.

Procore announced its IPO price of $ 67 per share on May 19 and is offering 9.47 million shares. Shares closed at $ 88 on the first day of trading, 31.3% up from their original price after hitting a high of $ 90.05. The offer ended on May 24, while the syndicate banks were granted an additional 30-day option to purchase up to 940,000 additional shares.

GuruFocus rated Procore’s financial strength a 5 out of 10 and its profitability a 1 out of 10. While net losses have increased in recent years, sales growth has been steady.

The company also appears to have a strong liquidity position on its balance sheet versus debt.

Coleman is currently the only guru investing in the stock.

Portfolio composition

More than half of Coleman’s $ 43.47 billion equity portfolio, which comprised 120 stocks as of March 31, is invested in the technology and consumer discretionary sectors.

At the end of the first quarter, the five largest holdings of guru JD.com Inc. (JD, Financially), Microsoft Corp

MSFT
. (MSFT, Financially), Roblox Corp

RBLX
. (RBLX, Financially), Sea Ltd. (I KNOW, Financially) and Amazon.com Inc

AMZN
. (AMZN, Financially).

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Disclosure

I / we do not have any positions in the stocks mentioned and do not plan to open any positions within the next 72 hours.

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