Carl Icahn Offers $15.50 Per Share for Pep Boys (NYSE:PBY)


Pep Boys-Manny Moe and Jack (NYSE:PBY) are trading up this afternoon after it is being reported that Carl Icahn has just proposed to buy the company for $15.50 per share. This is only a few days after the activist investor announced that he had taken a 12.12% stake in the firm. This offer would beat out Bridgestone’s $15 per share or $835 offer back in October.

Since Bridgestone’s offer, shares of Pep Boys-Manny Moe and Jack (NYSE:PBY) have gone up to eclipse that $15 per share price point, as investors clearly expected additional offers to come in. Surprisingly the market must feel that Icahn’s offer will not be the last that the company will receive. The stock is up 1.98% or $0.31 following the news, hitting $16 per share. About 1.14M shares traded hands. PBY has risen 71.48% since May 4, 2015 and is uptrending. It has outperformed the S&P500 by 72.55%.

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 -21.88% below today’s ($16) 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 is positive, 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 buying transaction, and 0 insider 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 $842.31 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.