Pep Boys (PBY) Bidding War Continues as Bridgestone Prepares To Up Offer

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It’s certainly been entertaining if you own shares of Pep Boys-Manny Moe and Jack (NYSE:PBY), as an all-out bidding war has come about between activist investor Carl Icahn and the Japanese tire manufacturer Bridgestone.

Bridgestone had initially offered to buy out the company for $15 per share, but Icahn, who owns a 12% stake in Pep Boys-Manny Moe and Jack (NYSE:PBY) upped the bid to $15.50. Bridgestone then matched Icahns offer and Icahn decided to up his offer to $16.50. Bridgestone now has until tomorrow to put a better offer on the table or risk Pep Boys going with Icahn’s latest offer. According to reports out of Japan, the tire company will be raising their bid once more, prior to the expiration of the deadline imposed by Pep Boys. The amount of the offer has not been released as of yet, but it’s safe to say we may see an offer of at east $17 per share.

The stock is currently trading higher by 3.32% or $0.56 following the positive news, hitting $17.45 per share at the time of us publishing this article. About 894,109 shares traded hands. PBY has risen 57.12% since May 20, 2015 and is uptrending. It has outperformed the S&P500 by 59.38%.

From a total of 4 analysts covering Pep Boys-Manny Moe and Jack (NYSE:PBY) stock, 1 rate it a “Buy”, 2 a “Sell”, and 1 a “Hold”. This means that 25% of the ratings are positive. The highest target price is $13 while the lowest target price is $12. The mean of all analyst targets is $12.50 which is -28.37% below today’s ($17.45) stock price. Pep Boys-Manny Moe and Jack was the topic of 4 analyst reports since September 7, 2015 according to the firm StockzIntelligence Inc. Argus Research downgraded shares on November 24 to a “Sell” rating. Jefferies initiated PBY stock in a recent report from September 15 with a “Hold” rating.

The institutional sentiment decreased to 1.38 in Q2 2015. It’s down 0.76, from 2.14 in 2015Q2. The ratio turned negative, as 24 funds sold all their Pep Boys-Manny Moe and Jack shares they owned while 40 reduced their positions. 31 funds bought stakes while 57 increased their total positions. Institutions now own 46.45 million shares which is 5.43% less than the previous share count of 49.11 million in 2015Q2.

Signia Capital Management Llc holds 7.17% of its total portfolio in Pep Boys-Manny Moe and Jack, equating to 177,699 shares. Armistice Capital Llc owns 840,000 shares representing 3.5% of their total US portfolio. Moreover, Adirondack Research & Management Inc. has 1.92% of their total portfolio invested in the company, equating to 411,201 shares. The New York-based Teton Advisors Inc. has a total of 1.12% of their portfolio invested in the stock. Gamco Investors Inc. Et Al, a New York-based fund reported 6.83 million shares owned.

Since August 24, 2015, the stock had 1 insider purchase, and 0 sales for a total of $23,883 in net activity. Gamco Investors – Inc. Et Al bought 2,200 shares worth $23,883.

Pep Boys-Manny, Moe & Jack is a service and automotive aftermarket company. The company has a market cap of $930.95 million. The Company’s stores are organized into a hub and spoke network, including supercenters and service and tire centers. It currently has negative earnings. Supercenters average approximately 20,000 square feet and combine do-it-for-me service labor, installed merchandise and tire offerings with do-it-yourself (DIY) parts and accessories.

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