American Capital Ltd. (ACAS) Looks Into Possible Sale of Assets As They Expand Buyback Program


Shares of American Capital Ltd. (NASDAQ:ACAS) are on fire in mid-day trading as the company made a couple of major announcements. First and foremost they have hired Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC to advise them on strategic alternatives, including the possible sale of the company or its assets.

“The Strategic Review Committee looks forward to a full independent review with the sole goal of maximizing value for shareholders,” said Neil Hahl, Chairman of the Board.

In addition they have announced an expansion of their share buyback program which had initially began in the third quarter of this year. They will now buy back between $600 million and $1 billion worth of stock by June of next year. The stock is up 8.27% or $1.15 after the positive news, hitting $15.05 per share. About 7.11M shares traded hands or 101.42% up from the average. ACAS has declined 8.55% since April 23, 2015 and is downtrending. It has underperformed by 7.43% the S&P500.

The institutional sentiment increased to 1.15 in Q2 2015. Its up 0.37, from 0.78 in 2015Q1. The ratio is positive, as 25 funds sold all American Capital Ltd. shares owned while 59 reduced positions. 28 funds bought stakes while 69 increased positions. They now own 183.92 million shares or 2.53% more from 179.39 million shares in 2015Q1.

Goldentree Asset Management Lp holds 12.41% of its portfolio in American Capital Ltd. for 4.10 million shares. Trust Asset Management Llc owns 1.66 million shares or 10.16% of their US portfolio. Moreover, Ejf Capital Llc has 6.54% invested in the company for 13.10 million shares. The New York-based Muzinich & Co. Inc. has invested 6.53% in the stock. Zuckerman Investment Group Llc, a Illinois-based fund reported 2.08 million shares.

Since March 5, 2015, the stock had 0 buys, and 16 sales for $1.23 million net activity. Flax Samuel Allan sold 430 shares worth $5,437. Graff Brian sold 101 shares worth $1,266. Peterson Kenneth D Jr sold 37,750 shares worth $517,288. Baskin Mary C sold 26,000 shares worth $361,660. The insider Erickson John R sold 1,314 shares worth $19,841.

American Capital, Ltd. is a global asset manager and private equity firm. The company has a market cap of $3.69 billion. The Firm both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy and structured products. It has 55.99 P/E ratio. It invests in senior and mezzanine debt and equity in buyouts of private companies sponsored by the Company or sponsored by other private equity funds and provides capital to early stage and mature private and small public companies.