JetBlue Airways – Icahn Capital Reveals 9.9% Stake in Airline
Icahn Capital, the investment firm founded by billionaire Carl Icahn, has disclosed its ownership in JetBlue Airways, revealing a stake of 33,621,735 shares. This includes 15,894,706 shares underlying forward contracts, acquired at an average cost of $4.25 per share. The shares were purchased by Icahn Capital between January 19 and February 1, at prices ranging from $4.79 to $5.49 each.
Combined with the forward contracts, Icahn Capital now holds a 9.9% interest in JetBlue Airways. The investment firm entered the position due to its belief that the airline presented an "attractive investment opportunity." Icahn Capital is also considering the possibility of seeking board representation in JetBlue Airways. However, it has not yet formulated any specific proposal or plan regarding the airline.
The disclosure of Icahn Capital's stake on February 12 caused a surge in JetBlue's shares, leading to a year-to-date return of nearly 30%. It's worth noting that in mid-January, a judge had blocked JetBlue's proposed acquisition of Spirit Airlines, which was followed by a joint notice of appeal by the two airlines.
Alta Equipment Group – Mill Road Capital Increases Stake to 9.4%
Mill Road Capital, an investment firm, has raised its interest in Alta Equipment Group, a operator of construction-equipment dealerships, to 3,051,865 shares. This increase came after Mill Road acquired 18,000 Alta Equipment shares on February 1, with the purchase facilitated through the assignment of put options exercised at $15 per share. Additionally, Mill Road bought 300,000 more Alta Equipment shares on February 8 at $11 per share.
As a result of these transactions, Mill Road Capital now owns 9.4% of Alta Equipment. The company's stock has experienced a decline of about 3% so far this year, and has lost around a third of its value in the past 12 months. In January, Alta Equipment announced the appointment of Jeff Hoover as its chief legal officer and general counsel.
Mercury Systems – Jana Partners Increases Stake to 11%
Jana Partners, an investment firm, has raised its stake in government and aerospace contractor Mercury Systems to 6,533,120 shares. Jana purchased 1,335,848 Mercury Systems shares on February 9, at prices ranging from $26.67 to $28.85 per share. This acquisition brings Jana's stake in the company up to 11%. Through a voting agreement, Jana's Managing Partner Scott Ostfeld was appointed to Mercury Systems' board in mid-2023.
Mercury Systems' stock has suffered a decline of approximately 16% in value so far this year, and has dropped over 40% in the past 12 months.
GMS – Coliseum Capital Reduces Position to 6.6%
Coliseum Capital, a hedge fund, has decreased its position in specialty distributor of building products GMS to 2,647,095 shares. The sale of 352,924 GMS shares took place between February 7 and February 9, at prices ranging from $87 to $88.33 each. At the end of the first quarter of 2023, Coliseum Capital owned nearly 15% of GMS' outstanding stock. However, following these recent sales, Coliseum Capital now holds a 6.6% stake in the company.
GMS' stock has experienced a gain of around 8% year-to-date, and has seen a significant increase of nearly 48% in the past 12 months. The company is set to report earnings for the fiscal third quarter, which ended in January, on February 29.
These disclosures were made through 13D filings with the Securities and Exchange Commission, which are required when an entity attains more than 5% ownership in any class of a company's securities.
Analyst comment
JetBlue Airways: Positive news. Icahn Capital’s ownership and potential board representation signal confidence in JetBlue. The disclosure caused a surge in shares, with a strong year-to-date return. Market expected to remain bullish.
Alta Equipment Group: Negative news. Mill Road Capital’s increased stake couldn’t prevent a drop in Alta Equipment’s shares this year and in the past 12 months. Market outlook remains uncertain.
Mercury Systems: Negative news. Jana Partners’ increased stake did not prevent a significant drop in Mercury Systems’ stock value. Market outlook remains bearish.
GMS: Neutral news. Coliseum Capital reduced its position, but GMS stock has seen gains this year and in the past 12 months. Market outlook depends on forthcoming earnings report.