Steven Cohen has revealed his latest stock market bet – Ascena Retail Group Inc (NASDAQ:ASNA). According to a recent filing with the Securities and Exchange Commission, the billionaire’s fund, Point72 Asset Management, controls approximately 8.52 million shares, which account for 5.2% of the company’s common stock. This is a new position as the fund had not reported holdings in Ascena Retail Group Inc (NASDAQ:ASNA) in its latest 13F filing.
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Ascena Retail Group Inc (NASDAQ:ASNA) is a retailer of clothing, shoes and apparel, and operates approximately 3,900 stores in the United States and Canada. The company has a market cap of $2.04 billion and does not pay a dividend. With a current value of $12.08, the stock is trading close to its value at the start of the year, having reached a June high of $17.59. As a result, the stock’s Price to Earnings ratio is roughly 19, which is lower than the industry average of 24.80. Ascena Retail Group Inc (NASDAQ:ASNA) has seen its revenues tumble for the 4th consecutive quarter after reporting $1.15 billion for the thirteen weeks ending April 25, 2015, which is still 0.5% higher than the figure reported for the same period of 2014. Earnings per share stand at $0.17 and are 37% lower year-over-year, signaling an increase in total expenses that have surpassed the increase in revenues. Analysts expect the company to post revenues of $1.16 billion and earnings per share of $0.05 for the current quarter.
The company has been on a roll in terms of expansion, having recently announced the opening of three new stores and its intention to acquire the company behind the Ann Taylor and LOFT apparel brands – Ann Inc (NYSE:ANN). Ascena Retail Group Inc (NASDAQ:ASNA) is set to splash $2.16 billion on this acquisition and expects the deal to be wrapped up in the second half of 2015.
“This powerful transaction joins two strong and highly complementary organizations and management teams and dramatically reinforces our leadership position in women’s specialty apparel retailing. We are excited to further leverage our uniquely capable operating platform and exceptional combined talent to drive immediate, significant and ongoing value for our stockholders. With the addition of the Ann Taylor and LOFT brands, ascena will become one of North America’s largest and most diversified specialty apparel retailers, with a tremendous set of opportunities to continue to expand its leadership position in the women’s apparel market,” said David Jaffe, the company’s President and Chief Executive Officer
Among the hedge funds we track, the biggest holders of Ascena Retail Group Inc (NASDAQ:ASNA) shares are Chuck Royce, with his fund, Royce & Associates, having reported ownership of 7.47 million shares in its latest 13F filing. Billionaire Ken Griffin is also a big fan of this stock and has increased his holding by 887% during the first quarter of 2015 to amass 1.65 million shares.
Following an insider trading investigation by the SEC, Steven Cohen decided to close SAC Capital Advisors, a fund he started back in 1992 and started Point72 Asset Management to manage his personal wealth. With a market value in excess of $14 billion, Cohen’s portfolio is well diversified into a large number of sectors, with consumer discretionary and energy being his favorites. Always an active figure in the hedge fund world, Steven Cohen has revealed a number of moves lately, among them a fresh investment in InterOil Corporation (USA) (NYSE:IOC): 3.1 million shares or 6.3% of the company’s common stock. Cohen has also continued his buying spree of Olin Corporation (NYSE:OLN) stock, taking his position to 4.94 million shares.
Disclosure: none.
