Carl Icahn Has Just Offered $18.50 A Share for Pep Boys (PBY)

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It’s been one heck of a month for shareholders of Pep Boys-Manny Moe and Jack (NYSE:PBY). In the midst of a bidding war between activist investor Carl Icahn and the Japanese multinational auto and truck parts manufacturer, Bridgestone, shares of Pep Boys continue to make new 52-week highs.

After initially offering to buy out the company for $15.00 a share, Bridgestone is now at a reflection point. Should they continue their bidding war for Pep Boys with the billionaire Icahn, or should they finally back off after Icahn has just offered to buy the company for $18.50 a share in cash, or just over $1 billion? Shares of Pep Boys-Manny Moe and Jack (NYSE:PBY) have jumped in after hours trading $0.97 or 5.58% following the news, and are trading just shy ($18.48) of Icahns offer, suggesting that investors may expect yet another counter offer by Bridgestone. The stock decreased 0.69% or $0.12 on December 28, hitting $17.39. Approximately 841,181 shares traded hands. PBY shares have risen 67.40% since May 22, 2015 and are currently uptrending. It has outperformed the S&P500 by 70.46%.

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 -28.12% below today’s ($17.39) 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 dived, 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 buy, 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 $946.89 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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