NEW YORK (TheStreet) -- Fortress Investment Group (FIG), the first publicly traded U.S. private-equity and hedge-fund manager, fell 3.35% to $8.09 at 10:13 a.m. on Thursday after news that four of the company's top executives would sell 25.7 million shares, approximately 10% of their interest, in an underwritten public stock sale.
The offering is the first major share disposal by those inside the company since its first went public seven years ago, according to Bloomberg. The move comes after Fortress shares have increase almost nine-fold from their low in 2008. Co-founders Wesley R. Edens and Randal A. Nardone and senior executives Peter L. Briger Jr. and Michael E. Novogratz should earn approximately $215 million from the deal.
Fortress also announced Wednesday an underwritten public offering to sell 28,280,000 shares with a 30-day option to purchase up to an additional 4,242,000 shares.
TheStreet Ratings team rates FORTRESS INVESTMENT GRP LLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORTRESS INVESTMENT GRP LLC (FIG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, attractive valuation levels, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 17.4%. Since the same quarter one year prior, revenues rose by 35.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, FORTRESS INVESTMENT GRP LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for FORTRESS INVESTMENT GRP LLC is rather high; currently it is at 57.74%. It has increased significantly from the same period last year. Along with this, the net profit margin of 25.78% is above that of the industry average.
- Powered by its strong earnings growth of 104.16% and other important driving factors, this stock has surged by 30.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FIG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full analysis from the report here: FIG Ratings Report