Should You Now Consider Disposing Your Coupa Software (COUP) Stake?

Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Aristotle Large Cap Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, Aristotle Atlantic’s Large Cap Growth Composite posted a total return of -9.61% gross of fees (9.72% net of fees), underperforming the -9.04% total return of the Russell 1000 Growth Index. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Aristotle Large Cap Growth Fund mentioned Coupa Software Incorporated (NASDAQ:COUP) and explained its insights for the company. Founded in 2006, Coupa Software Incorporated (NASDAQ:COUP)is a San Mateo, California-based global technology platform with a $5.1 billion market capitalization. Coupa Software Incorporated (NASDAQ:COUP) delivered a -56.54% return since the beginning of the year, while its 12-month returns are down by -69.51%. The stock closed at $68.69 per share on June 01, 2022.

Here is what Aristotle Large Cap Growth Fund has to say about Coupa Software Incorporated (NASDAQ:COUP) in its Q1 2022 investor letter:

“We sold our position in Coupa Software following the company’s fourth quarter 2021 earnings results. The company reported earnings that were disappointing relative to the growth trajectory of both pre-COVID and prior quarters over the past fiscal year. We are concerned that the company is seeing slowing traction in the enterprise sector and felt that the weak topline and billings guidance along with margin compression from increased sales and marketing costs creates too many headwinds for us to be comfortable with. The weak fiscal year 2023 billings guidance when combined with management’s qualitative comments about a strong pipeline is concerning to us, and we believe management has done a disappointing job in providing more transparency around the growth drivers for the business.”

Research, Investment, Finance

Research, Investment, Finance

Our calculations show that Coupa Software Incorporated (NASDAQ:COUP)   fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Coupa Software Incorporated (NASDAQ:COUP) was in 46 hedge fund portfolios at the end of the first quarter of 2022, compared to 59 funds in the previous quarter. Coupa Software Incorporated (NASDAQ:COUP) delivered a -43.35% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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