Telegraph Hill Partners buys $15m of Alpha Teknova shares at $1.24 each By Investing.com

In a recent transaction, Telegraph Hill Partners, a significant shareholder in Alpha Teknova, Inc. (NASDAQ:TKNO), has increased its stake in the company through a private placement. The investment firms involved, which include Telegraph Hill Partners IV, L.P., THP IV Affiliates Fund, LLC, Telegraph Hill Partners IV Investment Management LLC, and Telegraph Hill Partners V, L.P., collectively purchased shares worth approximately $15 million at a price of $1.24 per share.

The transaction, which took place on July 12, 2024, involved the acquisition of 11,126,929 shares by Telegraph Hill Partners IV, L.P. and its affiliates, and an additional 969,844 shares by Telegraph Hill Partners V, L.P. and its affiliates. Following the purchase, the total number of shares owned by Telegraph Hill Partners IV, L.P. and its affiliates is 21,859,660, while Telegraph Hill Partners V, L.P. and its affiliates hold 3,761,132 shares.

Telegraph Hill Partners has a significant influence in Alpha Teknova, Inc. as a ten percent owner. The investment management firm has a history of being actively involved in the companies it invests in, and this recent purchase further cements its position.

The shares were bought directly by the investment partnerships, and Telegraph Hill Partners IV Investment Management LLC and Telegraph Hill Partners Management Company, LLC, as the general partner and manager respectively, may be deemed to have beneficial ownership of the shares held by the partnerships.

This transaction indicates a strong vote of confidence in Alpha Teknova, Inc. from one of its major investors. Alpha Teknova, a company specializing in in vitro and in vivo diagnostic substances, is based in Hollister, California, and operates within the healthcare sector, focusing on life sciences.

Investors and market watchers often look to the actions of significant shareholders like Telegraph Hill Partners to gauge their confidence in a company’s future prospects. The recent purchase at Alpha Teknova reflects a positive outlook from Telegraph Hill Partners, suggesting they believe in the company’s value and potential for growth.

In other recent news, Alpha Teknova reported a 2% year-over-year increase in revenue for Q1 2024, along with an 18% sequential improvement from Q4 2023. This performance is attributed to the launch of new products and a diverse customer base. TD Cowen maintained a positive outlook on Alpha Teknova, reiterating a Buy rating after the company’s Q2 revenue slightly exceeded market expectations. The firm’s assessment followed the company’s preliminary revenue announcement for the second quarter, which came in at $9.4-9.6 million.

Alpha Teknova’s management highlighted improving macroeconomic conditions, noting a widespread recovery in funding that has contributed to the company’s performance. They also confirmed revenue projections for 2024, expecting to see an increase of approximately 10% year-over-year in their lab essentials segment, with revenues projected to be between $35 and $38 million. The company’s cost management strategies resulted in a $2.3 million improvement in adjusted EBITDA from the previous year.

Analysts noted that aggressive expense management is projected to generate savings of approximately $8 million by Q2 2024. They also highlighted that three cell and gene therapy customers are entering Phase III clinical trials later this year, with commercialization expected in late 2025 to 2026. These are some of the recent developments that have shaped Alpha Teknova’s current standing in the market.

InvestingPro Insights

Alpha Teknova, Inc. (NASDAQ:TKNO) has recently been the subject of a noteworthy transaction by Telegraph Hill Partners, and a closer look at the company’s financials through InvestingPro reveals a mixed bag. Despite a challenging financial performance over the last twelve months, the firm has demonstrated resilience in certain areas.

InvestingPro data shows that Alpha Teknova is currently operating with a market capitalization of $71.83 million, which provides a sense of the company’s size in the market. The firm’s Price / Book ratio as of Q1 2024 stands at 0.86, suggesting that the market may be undervaluing the company’s net asset value. Additionally, Alpha Teknova has seen a significant return over the last week, with a 10.66% price total return, hinting at recent investor optimism.

However, the company’s financial health is not without its concerns. Alpha Teknova’s P/E Ratio (adjusted for the last twelve months as of Q1 2024) is at -2.32, reflecting that the company is currently not profitable. Moreover, the company’s revenue has decreased by 6.45% over the last twelve months as of Q1 2024, indicating some struggles in growing its top line. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year.

For investors looking for more in-depth analysis, there are additional InvestingPro Tips available that could shed light on Alpha Teknova’s cash burn and debt levels. For instance, while the company is quickly burning through cash, it maintains liquid assets that exceed its short-term obligations, which could provide some financial flexibility in the near term. Moreover, the company operates with a moderate level of debt, which may be a factor for risk assessment.

To explore these metrics further and gain access to all 10 InvestingPro Tips for Alpha Teknova, Inc., investors are encouraged to visit InvestingPro. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes additional tips and insights to inform your investment decisions.

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