Inflection Point More than Doubles Monday.com Shares

Inflection Point Investments LLP increased its stake in Monday.com (NASDAQ:MNDY) by 11,200 shares in the third quarter, adding nearly $1 million in value, according to a Nov. 21, SEC filing.

What happened

Inflection Point Investments LLP disclosed the purchase of 11,200 additional shares of Monday.com (NASDAQ:MNDY) in the third quarter, raising its total holding to 21,300 shares, valued at $4,.1 million as of Sept. 30. The information comes from a U.S. Securities and Exchange Commission (SEC) Form 13F filing dated Nov. 21.

What else to know

• The fund bought more MNDY shares; the position now represents 8.8% of reportable assets
• Top holdings after the filing:
  • NASDAQ:XMTR: $7.3 million (15.6% of AUM)
  • NASDAQ:ITRN: $7.0 million (14.9% of AUM)
  • NASDAQ:CARG: $5.4 million (11.5% of AUM)
  • NASDAQ:KRNT: $5.2 million (11.0% of AUM)
  • NYSE:COUR: $4.8 million (10.2% of AUM)
• As of Nov. 20, Monday.com's shares were priced at $145.23, down 44.2% over the past year, underperforming the S&P 500 total return by 56.1 percentage points

Company Overview

Company Snapshot

Monday.com Ltd. is a technology company specializing in modular, cloud-based work management solutions designed to improve organizational productivity and collaboration. With a scalable SaaS platform and a focus on workflow customization, the company addresses a broad spectrum of operational needs for businesses worldwide.

Its strategic emphasis on flexibility and user-driven application building positions monday.com as a competitive player in the global enterprise software market.

Foolish take

Inflection Point Investments more than doubled its share ownership in Monday.com. It boosted the number of shares from 10,100 to 21,300 during the third quarter.

The investment firm showed confidence in the firm despite the swooning share price, which dropped by more than 38% from June 30 through Sept. 30.

Monday.com released third-quarter results a couple of weeks ago. Revenue increased 26% year over year to $316.9 million. Its operating loss under generally accepted accounting principles narrowed from $27.4 million to $2.4 million.

These certainly seem like positive results. However, the earnings report spurred a selloff in the shares. Investors weren't enthusiastic about the company's guidance, which calls for fourth-quarter revenue of $328 million to $330 million (22% to 23% year-over-year growth).

Inflection Point, which has a concentrated equity portfolio consisting of 9 stocks, according to its 13F filing. With a select number of stocks, its bullish position seems to indicate confidence in Monday.com despite near-term guidance that disappointed some investors.

Glossary

LLP: Limited Liability Partnership; a business structure combining partnership flexibility with limited liability protection for owners.
Stake: The ownership interest or share held by an investor in a company or fund.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or institution.
13F: A quarterly report filed by institutional investment managers with the SEC, disclosing their equity holdings.
Delta: The change or difference in a value, often used to show percentage change in holdings or exposure.
Reportable Assets: Assets that must be disclosed in regulatory filings, such as those required by the SEC.
Form 13F: An SEC filing that lists the equity securities held by institutional investment managers with over $100 million in assets.
SaaS: Software as a Service; a software delivery model where applications are accessed online via subscription, not installed locally.
Work OS: A cloud-based platform enabling organizations to build and manage custom workflow applications for various business processes.
TTM: The 12-month period ending with the most recent quarterly report.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CarGurus, Ituran Location And Control, Kornit Digital, Monday.com, and Xometry. The Motley Fool has a disclosure policy.