Carl Icahn Takes Major Stake in Pep Boys-Manny Moe and Jack (NYSE:PBY)


Pep Boys-Manny Moe and Jack (NYSE:PBY) shares are up $1.67 or 10.75% in after hours trading this afternoon after it was revealed that activist Carl Icahn has taken a 12.1% stake in the auto parts and maintenance chain. Icahn stated that Pep Boys’ “retail automotive parts segment presents an excellent synergistic acquisition opportunity for Auto Plus, a leading automotive aftermarket company wholly owned by Icahn Enterprises LP.”

Pep Boys-Manny Moe and Jack (NYSE:PBY) had an agreement with Bridgestone Corp back in October to sell off their retail chain, however, this move by Icahn may put a dagger in those plans. The stock increased 3.29% or $0.5 during the last trading session, hitting $15.7. About 1.97 million shares traded hands. PBY has risen 71.48% since May 4, 2015 and is uptrending. It has outperformed the S&P500 by 71.68%.

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 -20.38% below today’s ($15.7) 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 increased to 2.14 in Q2 2015. It’s up 0.97, from 1.17 in 2015Q1. The ratio increased, as 16 funds sold all their Pep Boys-Manny Moe and Jack shares they owned while 28 reduced their positions. 30 funds bought stakes while 64 increased their total positions. Institutions now own 49.11 million shares which is 1.08% more than the previous share count of 48.59 million in 2015Q1.

Signia Capital Management Llc holds 6.14% of its total portfolio in Pep Boys-Manny Moe and Jack, equating to 192,276 shares. Adirondack Research & Management Inc. owns 411,201 shares representing 1.85% of their total US portfolio. Moreover, Teton Advisors Inc. has 0.98% of their total portfolio invested in the company, equating to 1.16 million shares. The Arizona-based Leonard Capital Management Inc has a total of 0.5% of their portfolio invested in the stock. Gamco Investors Inc. Et Al, a New York-based fund reported 6.97 million shares owned.

Since August 24, 2015, the stock had 1 insider 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 $820.59 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.