Docoh
Loading...

COWN Cowen

Cowen is a diversified financial services firm offering investment banking services, equity and credit research, sales and trading, prime brokerage, global clearing, commission management services and actively managed alternative investment products. Cowen focuses on delivering value-added capabilities to its clients in order to help them outperform. Founded in 1918, the Company is headquartered in New York and has offices worldwide.

Company profile

Ticker
COWN, COWNL
Exchange
Website
CEO
Jeffrey Solomon
Employees
Incorporated
Location
Fiscal year end
Former names
COWEN GROUP, INC., LexingtonPark Parent Corp
SEC CIK
Subsidiaries
8995 Collins LLC • AB Co-Investment LLC • ABP Co-Investment LLC • Algorithmic Trading Management, LLC • ASA Co-Investment LLC • ATM Execution LLC • BNS Co-Investment LLC • CA Co-Investment LLC • CHI Advisors LLC • CHI EF II LP ...

COWN stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

30 Jul 21
26 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from Cowen earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.05B 1.05B 1.05B 1.05B 1.05B 1.05B
Cash burn (monthly) 125.51M (positive/no burn) (positive/no burn) (positive/no burn) 60.7M (positive/no burn)
Cash used (since last report) 486.73M n/a n/a n/a 235.4M n/a
Cash remaining 563.53M n/a n/a n/a 814.86M n/a
Runway (months of cash) 4.5 n/a n/a n/a 13.4 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Sep 21 Holmes John J Class A Common Stock Payment of exercise Dispose F No No 36.44 1,292 47.08K 205,162
1 Sep 21 Lasota Stephen Class A Common Stock Payment of exercise Dispose F No No 36.44 1,139 41.51K 236,024
1 Sep 21 Littman Owen S Class A Common Stock Payment of exercise Dispose F No No 36.44 1,193 43.47K 190,384
1 Sep 21 Solomon Jeffrey M Class A Common Stock Payment of exercise Dispose F No No 36.44 7,954 289.84K 907,145
28 Jul 21 Holmes John J Class A Common Stock Sell Dispose S No Yes 40 1,434 57.36K 206,454

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

89.6% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 199 192 +3.6%
Opened positions 42 49 -14.3%
Closed positions 35 16 +118.8%
Increased positions 57 47 +21.3%
Reduced positions 71 74 -4.1%
13F shares
Current Prev Q Change
Total value 1.3B 1.32B -1.1%
Total shares 26.01M 27.3M -4.7%
Total puts 149.4K 164K -8.9%
Total calls 554K 539.5K +2.7%
Total put/call ratio 0.3 0.3 -11.3%
Largest owners
Shares Value Change
BLK Blackrock 2.67M $109.69M -0.3%
Vanguard 1.64M $67.33M +5.5%
FMR 1.5M $61.68M -9.6%
Dimensional Fund Advisors 1.28M $52.38M -1.9%
Arbiter Partners Capital Management 932.69K $38.29M -12.8%
Nuveen Asset Management 885.07K $36.33M +2.3%
Jacobs Levy Equity Management 700.63K $28.76M +30.8%
D. E. Shaw & Co. 627.19K $25.75M -26.6%
STT State Street 584.16K $23.98M +9.3%
Azora Capital 577.89K $23.72M -56.3%
Largest transactions
Shares Bought/sold Change
Azora Capital 577.89K -745.82K -56.3%
D. E. Shaw & Co. 627.19K -227.8K -26.6%
Russell Investments 232.9K -173.36K -42.7%
Jacobs Levy Equity Management 700.63K +164.85K +30.8%
Allianz Asset Management GmbH 234.6K +164.63K +235.3%
FMR 1.5M -159.86K -9.6%
Voya Investment Management 263.41K -154.6K -37.0%
Kingstown Capital Management 0 -150K EXIT
Renaissance Technologies 227.43K +148.3K +187.4%
GS Goldman Sachs 321.71K -147.64K -31.5%

Financial report summary

?
Risks
  • Difficult market conditions, market disruptions and volatility have adversely affected, and may in the future adversely affect, the Company's businesses, results of operations and financial condition.
  • We may incur losses as a result of unforeseen or catastrophic events, including the emergence of a pandemic, terrorist attacks, extreme weather events or other natural disasters.
  • The Company may be unable to successfully identify, manage and execute future acquisitions, investments and strategic alliances, which could adversely affect our results of operations.
  • The Company's future results will suffer if the Company does not effectively manage its expanded operations.
  • Volatility in the value of the Company's investments and securities portfolios or other assets and liabilities, including investment funds, or negative returns from the investments made by the Company have in the past and could in the future adversely affect the Company's results of operations and statement of financial condition.
  • The Company faces strong competition from larger firms.
  • The Company depends on its key senior personnel and the loss of their services would have a material adverse effect on the Company's businesses and results of operations, financial condition and prospects.
  • The Company's ability to retain its senior professionals is critical to the success of its businesses, and its failure to do so may materially affect the Company's reputation, business and results of operations.
  • Employee misconduct could harm the Company by, among other things, impairing the Company's ability to attract and retain investors and subjecting the Company to significant legal liability, reputational harm and the loss of revenue from its own invested capital.
  • The Company's investment banking businesses focus principally on specific sectors of the economy, and deterioration in the business environment in these sectors or a decline in the market for securities of companies within these sectors could materially affect our investment banking businesses.
  • The financial results of the Company's investment banking businesses may fluctuate substantially from period to period.
  • Pricing and other competitive pressures may impair the revenues of the Company's brokerage business.
  • The Company's capital markets and strategic advisory engagements are singular in nature, do not generally provide for subsequent engagements and can lead to payment risk.
  • Larger and more frequent capital commitments in the Company's trading and underwriting businesses increase the potential for significant losses.
  • The market structure in which our market-making business operates may make it difficult for this business to maintain profitability.
  • The growth of electronic trading and the introduction of new technology in the markets in which our market-making business operates may adversely affect this business and may increase competition.
  • We are subject to potential losses and default risks as a result of our clearing and execution activities.
  • In certain jurisdictions we are dependent on third-party clearing agents and any failures by such clearing agents could materially impact our business and operating results.
  • Our clearing and execution operations are global and international market events could adversely impact our financial results.
  • Decreases in equity trading activity by active fund managers and declining securities prices could harm our business and profitability.
  • The Company's revenues and, in particular, its ability to earn incentive and investment income, would be adversely affected if there are reversals to previously accrued incentive fees or if its investment funds fall beneath their "high-water marks" as a result of negative performance.
  • The Company's ability to increase revenues and improve profitability will depend on increasing assets under management in existing investment strategies and developing and marketing new investment products and strategies, including identifying and hiring or affiliating with new investment teams.
  • Certain of the Company's investment funds may invest in relatively high-risk, illiquid assets, and the Company may fail to realize any profits from these activities for a considerable period of time or lose some or all of the principal amounts of these investments.
  • The due diligence process that the Company's investment management business undertakes in connection with investments by the Company's investment funds is inherently limited and may not reveal all facts that may be relevant in connection with making an investment.
  • Investors and beneficial owners in the Company's hedge funds can generally redeem investments with prior notice. The rate of redemptions could accelerate at any time. Historically, redemptions have created difficulties in managing the liquidity of certain of the Company's hedge funds, reduced assets under management and adversely affected the Company's revenues, and may do so in the future.
  • Investments made by investment funds, including the investments of the Company's own capital in the Company's investment funds, are subject to other additional risks.
  • If the Company's investment fund's counterparty for any of its derivative or non-derivative contracts defaults on the performance of those contracts, the Company may not be able to cover its exposure under the relevant contract.
  • The Company may suffer losses in connection with the insolvency of prime brokers, custodians, administrators and other agents whose services the Company uses and who may hold assets of the Company's investment funds.
  • Risk management activities may materially adversely affect the return on the Company's investment funds' investments if such activities do not effectively limit exposure to decreases in investment values or if such exposure is overestimated.
  • The Company's real estate investments are subject to the risks inherent in the ownership and operation of real estate and the construction and development of real estate.
  • Our third party reinsurance business could expose us to losses.
  • We may be unable to purchase retrocession reinsurance and our retrocession agreements subject us to third-party credit risk.
  • The Company may incur losses in the future.
  • We have taken steps to protect our businesses from cybersecurity attacks while our employees have been working remotely, but remote working environments may be less secure and more susceptible to cybersecurity attaches which could adversely affect our ability to securely process transactions and maintain confidential financial, personal and other information.
  • Operational risks relating to the failure of data processing systems and other information systems and technology or other infrastructure may disrupt the Company's business and result in losses or limit our operations and growth in the industry.
  • Any cyber attack or other security breach of or vulnerability in our technology systems, or those of our clients or other third party vendors we rely on, could have operational impacts, subject us to significant liability and harm our reputation.
  • The soundness of other financial institutions may adversely affect Cowen.
  • Higher volumes and price volatility in the markets due to COVID-19 could lead to higher cash requirements in our clearing businesses, which could adversely affect our liquidity position.
  • Limitations on access to capital by the Company and its subsidiaries could impair its liquidity and its ability to conduct its businesses.
  • We are a holding company and rely upon our subsidiaries for cash flow to make payments of principal and interest on our outstanding indebtedness.
  • Servicing our debt and funding our necessary capital expenditures requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt or to fund our necessary capital expenditures.
  • Despite our current consolidated debt levels, we may still incur substantially more debt or take other actions which would intensify the risks discussed above.
  • The conditional conversion feature of the 2022 Convertible Notes, if triggered, may adversely affect our financial condition and operating results.
  • The accounting method for convertible debt securities that may be settled in cash, such as the 2022 Convertible Notes, could have a material effect on our reported financial results.
  • Certain provisions in the indentures governing the 2022 Convertible Notes could delay or prevent an otherwise beneficial takeover or takeover attempt of us.
  • The Company's subsidiaries may become subject to additional regulations which could increase the costs and burdens of compliance or impose additional restrictions which could have a material adverse effect on the Company's businesses and the performance of the Company's investment funds.
  • The Company is subject to third party litigation risk and regulatory risk which could result in significant liabilities and reputational harm which, in turn, could materially adversely affect its business, results of operations and financial condition.
  • The potential for conflicts of interest within the Company, and a failure to appropriately identify and deal with conflicts of interest could adversely affect our businesses.
  • Increased regulatory focus could result in regulation that may limit the manner in which the Company and its investment management business invest, materially impacting the Company's business.
  • The terms of our Series A Convertible Preferred Stock contains certain restrictions on our operations.
  • The Company's failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on the Company's financial condition, results of operations and business and the price of our Class A common stock.
  • Certain provisions of the Company's amended and restated certificate of incorporation and bylaws and Delaware law may have the effect of delaying or preventing an acquisition by a third party.
  • If securities analysts stop publishing research or reports about us or our business or if they downgrade our common stock, the market price of our common stock and, consequently, the trading price of our other securities could decline.
  • Future sales of our common stock in the public market could adversely impact the trading price of our securities.
Management Discussion
  • To provide comparative information of the Company's operating results for the periods presented, a discussion of Economic Income (Loss) (which is a non-GAAP measure) of our Op Co and Asset Co segments follows the discussion of our total consolidated US GAAP results.
  • Investment banking revenues increased $21.0 million to $225.0 million for the three months ended June 30, 2021 compared with $204.0 million in the prior year period. During the three months ended June 30, 2021, the Company completed 39 underwriting transactions, 41 strategic advisory transactions, and six debt capital markets transactions. During the three months ended June 30, 2020, the Company completed 48 underwriting transactions, 14 strategic advisory transactions and two debt capital markets transactions. The average underwriting fee per transaction was 21.4% lower for the three months ended June 30, 2021 as compared to the prior year period.
  • Brokerage revenues increased $8.9 million to $139.1 million for the three months ended June 30, 2021 compared with $130.2 million in the prior year period. This was attributable to an increase in Institutional Services, primarily Prime Brokerage
Content analysis
?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Bad
New words: cedant, essentially, half, inspect, inspection, movement, newly, succeeded, write
Removed: acceleration, administering, administration, advantage, bought, conclusion, disposition, effectively, electronic, fewer, force, fundamental, joint, Longview, outweighed, personnel, preliminary, rendering, replacement, rest, restrict, restrictive, revolving, sustainability, syndicate, thereunder