CPNG

Insider Trading Contrast: Greenoaks Capital Adds $37.5M in Coupang ($CPNG) Shares While SoftBank Divests $772.5M

05/16/2025 23:37

GREENOAKS CAPITAL PARTNERS LLC continues to demonstrate strong conviction in Korean e-commerce giant Coupang ($CPNG) with its latest purchase of 1.4 million shares on May 14-15, 2025, totaling approximately $37.5 million. This recent acquisition represents the continuation of a consistent buying pattern that has persisted since August 2024. Greenoaks has maintained substantial buying positions in Coupang throughout the past year. In August 2024, the investment firm purchased approximately 1.45 million shares worth $32 million, followed by another significant acquisition of 2.25 million shares ($54.6 million) in November 2024. This persistent accumulation signals strong confidence in Coupang's long-term growth prospects despite market fluctuations. Coupang's stock has shown positive momentum over the past year, rising from approximately $22.53 in early June 2024 to $26.84 as of May 15, 2025—representing a 19% increase. Particularly notable is the stock's strong upward trajectory since early May, when it surged from $24 to around $27 following the company's Q1 earnings report. In stark contrast to Greenoaks' accumulation strategy, SoftBank's Vision Fund (SVF Investments) executed a massive divestment on May 8, selling 30 million shares at $25.75 per share, totaling approximately $772.5 million. This significant selloff appears to be part of SoftBank Group's portfolio rebalancing as it refocuses capital toward artificial intelligence investments. SoftBank Group had previously reported a quarterly loss of $2.4 billion in February 2025, citing unrealized valuation losses in tech investments including Coupang. However, in its most recent earnings announcement on May 13, SoftBank reported its first annual profit in four years, partly attributed to higher valuations in later-stage startups including Coupang. Coupang's executives have also been active in the market. CEO Bom Suk Kim sold 15 million shares in November 2024, valued at approximately $344.55 million, though this was reported as a conversion of Class B shares to Class A shares. CFO Gaurav Anand has executed several sales, with the most recent occurring on May 12, 2025, involving 75,350 shares worth approximately $1.97 million. Director Benjamin Sun has also conducted multiple sales over the past year, most recently divesting 200,000 shares ($5.21 million) on May 8, 2025. Looking at Coupang's recent business performance, the company reported Q1 2025 adjusted earnings of 6 cents per share, an improvement from 5 cents in the same period last year. Revenue increased by 11.2% year-over-year to $7.91 billion, slightly below analyst expectations of $8.06 billion. Coupang continues to maintain its dominant position in the Korean e-commerce market while expanding into delivery services, streaming, and food delivery. Coupang has been navigating regulatory challenges in Korea. In June 2024, the Korea Fair Trade Commission (KFTC) determined that Coupang's search ordering practices were deceptive and violated Korean law, imposing a fine of approximately $121 million. Coupang has contested these findings and plans to appeal, arguing that its practices align with global e-commerce standards. The competitive landscape is evolving, with South Korea's Shinsegae Group announcing plans to establish a joint venture with Alibaba, potentially altering market dynamics. Additionally, Delivery Hero reported a 5% decrease in GMV in Asia due to competition from Coupang and GS Retail. The recent surge in Coupang's stock price over the past month appears driven by improved Q1 performance and Greenoaks Capital's continued investment, which sends a positive signal to the market. Notably, Greenoaks' maintenance of its buying position despite SoftBank's significant divestment suggests strong conviction in the company's fundamentals. Analysts maintain an average 'buy' rating on Coupang with a median 12-month price target of $29.50, indicating approximately 10% upside potential from current levels. However, investors should note the company's high P/E ratio of 194.57, which suggests an elevated valuation. Going forward, insider trading patterns, particularly from Greenoaks Capital, will be a key indicator for evaluating Coupang's stock movement. Additionally, investors should monitor the intensifying competition in the Korean market, new service launches, and the success of international expansion strategies. For long-term investors, Coupang's ability to sustain revenue growth while improving profitability will remain the central investment thesis.

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