If you are a Pep Boys-Manny Moe and Jack (NYSE:PBY) shareholder then you are the recipient of a bidding war between billionaire activist investor Carl Icahn and Bridgestone, which seems to be incredibly beneficial.
Today Icahn has upped his offer on the company to $16.50 per share, which is $1 per share higher than shareholders would have received under the Bridgestone merger offer of $15.50 per share in cash. Pep Boys stated Monday that its Board of Directors sees Icahn’s offer as being the “superior proposal” and decided to give Bridgestone until Wednesday the 23rd at 5 p.m. ET to respond. Bridgestone had originally offered $15 a share before Icahn came in and made his $15.50 offer. They then matched Icahns offer before Icahn raised his offer this morning. The stock is currently trading higher by 6.41% or $1.01 following the positive news, hitting $16.77 per share at the time of us publishing this article. About 133,215 shares traded hands. PBY has risen 70.19% since May 18, 2015 and is uptrending. It has outperformed the S&P500 by 72.46%.
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 -25.46% below today’s ($16.77) 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 is 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 buying transaction, 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 $857.83 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.