Is Conduent Inc. (CNDT)’s Stock Worth Investing For?

Miller Value Partners, an investment management firm, published its “Miller Deep Value Strategy” fourth quarter 2021 investor letter – a copy of which can be seen here. For the fourth quarter, the Deep Value Strategy was down 8.3%, significantly more than the overall market and the S&P 1500 Value Index. For the year, the Deep Value Strategy was up 57.8%, well ahead of the Value Index and the overall market. 2021 marks the 3rd year in a row that the Strategy has generated investment returns greater than 50%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Value Partners Deep Value Strategy, in its Q4 2021 investor letter, mentioned Conduent Incorporated (NYSE: CNDT) and discussed its stance on the firm. Conduent Incorporated is a Florham Park, New Jersey-based business services provider company with a $1 billion market capitalization. CNDT delivered a -11.42% return since the beginning of the year, while its 12-month returns are down by -7.07%. The stock closed at $4.73 per share on February 2, 2022.

Here is what Miller Value Partners Deep Value Strategy has to say about Conduent Incorporated in its Q4 2021 investor letter:

“Conduent (CNDT) recently announced their first non-core asset sale at $340M in cash. What is significant about this transaction is the asset sale was at an Enterprise Value-to-Revenue of more than 4x – a significant premium to Conduent’s overall enterprise value. The company monetized less than 3% of company revenue and generated cash equivalent to nearly 30% of its market capitalization, creating significant long-term accretion to the underlying equity value. Recently, The New York Times announced the acquisition of Athletic for $550M. Athletic has 200 sports journalists and generates annual revenue of approximately $65M (acquisition price greater than 8x revenue!).”

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Our calculations show that Conduent Incorporated (NYSE: CNDT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CNDT was in 26 hedge fund portfolios at the end of the third quarter of 2021, compared to 23 funds in the previous quarter. Conduent Incorporated (NYSE: CNDT) delivered a -33.47% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on CNDT in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.