Pep Boys (PBY) Gives Bridgestone Until End of Year To Counter $1B+ Icahn Offer


As the bidding war for Pep Boys-Manny Moe and Jack (NYSE:PBY) took another turn yesterday afternoon with activist billionaire investor Carl Icahn offering approximately $1 billion or $18.50 per share for the company, Peb Boys has now set a deadline of Dec 31st for those wishing to counter Icahns offers. This means that Bridgestone, the original company to offer to buy out Pep Boys-Manny Moe and Jack (NYSE:PBY) will have a couple of days to determine if they believe the company is worth in excess of $1 billion. Any offer would likely be $4 per share above their original $15 per share offer they made back in October, which amounts to around $200 million north of that October offer.

While some analysts think that Bridgestone may back off, the market seems to be betting on an even larger offer coming in as shares are trading above Icahn’s last offer price of $18.50. The stock is currently trading higher by 7.98% or $1.39 following the positive news, hitting $18.8 per share at the time of us publishing this article. About 740,013 shares traded hands. PBY has risen 69.85% since May 26, 2015 and is uptrending. It has outperformed the S&P500 by 72.12%.

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 -33.51% below today’s ($18.8) 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 worsened, 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 selling transactions 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 $947.97 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.