While the industry gossips and speculates about what’s behind the lengthy delay in S4 Capital releasing its full-year 2021 financial statements, a U.S. hedge fund has been quietly buying up shares of the firm amidst the turmoil.
This week Permian Investment Partners bought its latest batch of shares bringing its stake in the company to 5.05% up from the previous total of 4.1%.
Of course, if you believe in S4’s long-term prospects it’s a good time to buy—shares are down about 23% since the firm announced a second delay in the release of its financials in late March.
As a general rule, Permian says it doesn’t comment on investments that it makes.
And not everybody is bullish on the stock. Seeking Alpha downgraded the company last week to a hold rating saying that shares couldn't be accurately valued until there was more "clarity" around the 2021 financial results.
A spokesperson for S4 confirmed that the company has not yet issued a new date for releasing its year-end figures, although S4 leader Martin Sorrell has been quoted in a couple of recent press reports as saying it will be “soon,” and that the delay doesn’t imply that the firm will be making any “material” adjustments to what it has already said about its performance.