In a recent transaction, Corre Partners Management, LLC, along with its affiliated funds, has made a notable purchase in the stock market. The investment firm acquired shares of TEAM Inc (NYSE:TISI), a company specializing in miscellaneous repair services, with the transaction registered on June 3, 2024.
The purchase, which involved a total of 2,800 shares, was executed at a price of $7.3179 per share, resulting in a total investment of $20,490. This transaction indicates a growing interest from Corre Partners Management in TEAM Inc, as the shares were acquired directly by the firm's affiliated funds: Corre Opportunities Qualified Master Fund, LP; Corre Horizon Fund, LP; and Corre Horizon II Fund, LP.
Following the transaction, the ownership stakes of the funds in TEAM Inc were reported as 1,037,691 shares for Corre Opportunities Qualified Master Fund, LP, 249,942 shares for Corre Horizon Fund, LP, and 267,887 shares for Corre Horizon II Fund, LP. The shares are held indirectly through Corre Partners Management, LLC, which has been delegated investment management authority over the assets of the funds by Corre Partners Advisors, LLC, the general partner of the funds. John Barrett and Eric Soderlund, the co-owners and managing members of the investment adviser and the general partner, are the driving forces behind these strategic investment decisions.
Investors and market watchers often keep a close eye on such transactions, as they may signal the confidence of major stakeholders in the future prospects of the company. With this recent purchase, Corre Partners Management has reaffirmed its position as a significant shareholder in TEAM Inc.
In other recent news, Team Inc. has seen significant developments. The company expanded its Board of Directors with the appointment of Pamela J. McGinnis as a Class II director. McGinnis, with over three decades of experience from her tenure at Phillips 66 (NYSE:PSX), Conoco, and ConocoPhillips (NYSE:COP), is expected to contribute to the company's strategic goals.
Concurrently, Team Inc. disclosed that it has received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with the exchange's listing standards. The company's average global market capitalization and shareholders' equity fell below the NYSE's $50 million threshold. The company now has 45 days to submit a plan to regain compliance within the next 12 months.
While these are recent developments, the company is also exploring all available options to regain compliance and maintain its listing on the NYSE. However, there is no certainty that the company will meet the necessary conditions. These developments reflect the company's ongoing efforts to navigate its financial challenges and enhance its intrinsic value.
InvestingPro Insights
In light of the recent acquisition by Corre Partners Management, LLC, TEAM Inc (NYSE:TISI) presents a mixed financial landscape according to InvestingPro data. With a market capitalization of $36.6 million, TEAM Inc operates within a challenging financial context. The company's P/E ratio stands at -0.53, reflecting its current earnings challenges. Additionally, the revenue growth for the last twelve months as of Q1 2024 is marginally positive at 0.76%, indicating a relatively stagnant performance in terms of sales.
InvestingPro Tips highlight critical aspects of TEAM Inc's financial health. The company operates with a significant debt burden and may face difficulties in making interest payments on its debt, which is a vital consideration for investors like Corre Partners Management. On the brighter side, TEAM Inc's liquid assets exceed its short-term obligations, suggesting some degree of financial flexibility. However, it's important to note that the company has not been profitable over the last twelve months and does not pay dividends to shareholders, which may affect investor returns.
Despite the challenges, TEAM Inc has experienced strong returns recently, with a 19.36% increase over the last month and a 36.3% increase over the last three months. These short-term gains may have contributed to Corre Partners Management's decision to increase their stake in the company. For investors seeking further insights and tips on TEAM Inc, InvestingPro offers additional metrics and analytics. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to even more valuable investment information. There are 11 additional InvestingPro Tips available for TEAM Inc, which can be found at https://www.investing.com/pro/TISI, offering a comprehensive understanding of the company's financial position and future prospects.
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