Fisher Asset Management LLC Reduces Stake in Envestnet, by 3.6%, Impacting Financial Landscape
July 27, 2023
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Envestnet ($NYSE:ENV), Inc. is a leading provider of intelligent, technology-driven advice, analytics, and services to the financial services industry. Recently, Fisher Asset Management LLC, a major shareholder of Envestnet, Inc., announced that it had reduced its holdings of Envestnet by 3.6%. This news has resulted in much speculation and concern with regard to the financial landscape. It is possible that the sale of Envestnet shares by Fisher Asset Management LLC could indicate an overall decrease in confidence in the company or its stock. This could result in a decline in the price of Envestnet stock, leading to losses for other investors.
Similarly, a decrease in Envestnet’s market capitalization may result in fewer investment opportunities and diminished opportunities for growth in the financial services sector as a whole. On the other hand, the sale by Fisher Asset Management LLC may also be seen as a sign of confidence in the company, as it has chosen to reallocate its investments to other areas. This repositioning of funds may indicate that Fisher Asset Management LLC expects better returns from its new investments than from Envestnet. Regardless of the motivation, however, the sale of Envestnet stock by Fisher Asset Management LLC has caused uncertainty and concern in the financial landscape.
Analysis
GoodWhale has conducted an examination of ENVESTNET‘s fundamentals and concluded that they are classified as a ‘sloth’ business, meaning they have achieved revenue or earnings growth slower than the overall economy. The company is strong in growth, medium in profitability and weak in assets and dividends, and has an intermediate health score of 6/10 considering its cashflows and debt. This indicates that ENVESTNET is likely to be able to sustain future operations in times of crisis. Given this information, it is likely that value investors may be interested in such a company, due to its potential for slower but steady returns in the long-term. Other types of investors may also be drawn to the business due to its low risk profile. However, ENVESTNET may not be suitable for more aggressive investors who are looking for higher returns in the short-term. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Envestnet. More…
| Total Revenues | Net Income | Net Margin |
| 1.22k | -108.31 | -8.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Envestnet. More…
| Operations | Investing | Financing |
| 80.25 | -263.81 | -121.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Envestnet. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.06k | 1.32k | 13.35 |
Key Ratios Snapshot
Some of the financial key ratios for Envestnet are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.7% | 42.0% | -5.8% |
| FCF Margin | ROE | ROA |
| -3.4% | -6.0% | -2.1% |
Peers
The competition between Envestnet Inc and its competitors is fierce. Each company is vying for market share and customer loyalty. Envestnet Inc has a strong product offering and a loyal customer base.
However, its competitors are not to be underestimated. Liquid Holdings Group Inc, Clearwater Analytics Holdings Inc, and Centergistic Solutions Inc are all viable competitors in the market.
– Liquid Holdings Group Inc ($OTCPK:LIQDQ)
Liquid Holdings Group Inc is a financial technology company that provides an integrated suite of cloud-based solutions for the global hedge fund and active trading markets. The company’s solutions include order and execution management, portfolio and risk management, and compliance and reporting. Liquid Holdings Group Inc is headquartered in New York, New York.
– Clearwater Analytics Holdings Inc ($NYSE:CWAN)
Clearwater Analytics Holdings Inc is a provider of cloud-based software solutions for the global insurance industry. The company’s software solutions are used by insurance companies and other financial institutions to manage their investment portfolios, including risk management and compliance. Clearwater’s software solutions are delivered through a software-as-a-service (SaaS) model and are available on a subscription basis.
Summary
Envestnet, Inc. has been subject to a significant reduction in its holdings by Fisher Asset Management LLC. The 3.6% reduction in holdings, though sudden, highlights the importance of conducting thorough analysis before investing in any company. Investors should evaluate the expected risks and returns associated with any potential investment, review the competitive landscape, and consider the company’s financial statements and cash flow statements to assess the future prospects of the company.
It is also important to consider the impact of macroeconomic conditions, such as geopolitical factors, on the company’s performance. Overall, investors should remain vigilant and use all available resources to gain an informed understanding of the financial landscape.
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