8. John Bean Technologies Corporation (NYSE:JBT)
Number of Hedge Fund Holders: 19
1-Year Share Price Decline as of September 4: 18.2%
52 Week Range: $86.12 – $111.43
John Bean Technologies Corporation (NYSE:JBT) is an Illinois-based food processing machinery and automated vehicle company. On June 24, 2024, the company officially presented a voluntary takeover offer to acquire all outstanding shares of Marel (ICL: Marel). Marel shareholders will have the option to choose between receiving all cash, all JBT common stock, or a combination of both for each Marel share, subject to a proration feature. This feature will lead to an overall consideration consisting of about 65 percent stock and 35 percent cash. Shareholders of Marel will receive a total of €950 million in cash and will retain approximately a 38 percent ownership stake in the merged company. The merger was not well-received by investors when it was first announced earlier this year, leading to a significant decline in the company’s shares following the announcement. Since the start of 2024, the stock has fallen by nearly 8%. Conestoga Capital Advisors also highlighted this in its Q4 2023 investor letter. Here is what the firm wrote:
“John Bean Technologies Corporation (NYSE:JBT): JBT is a leading global food processing and air transportation solutions provider, recognized for its technology and service leadership. The stock underperformed the market late in the quarter after announcing a nonbinding proposal to acquire all the shares of publicly traded Icelandic food processing company Marel for $2.6 billion. While the initial offer was subsequently rejected by the Marel Board of Directors, a second offer was proposed and is currently under review.”
John Bean Technologies Corporation (NYSE:JBT) reported mixed earnings in the second quarter of 2024 due to a slow recovery in equipment demand from North American poultry customers. The company’s revenue for the quarter came in at $402.3 million, down 6% from the same period last year. The overall results were affected by a revenue shortfall, partly due to the performance of book and ship orders, as well as a temporary delay in progress on ongoing projects and aftermarket parts orders related to a system upgrade.
However, John Bean Technologies Corporation’s (NYSE:JBT) cash flow generation was a positive development for income investors. In the first six months of the year, the company reported an operating cash flow of $32 million and its free cash flow came in at $14 million. During this period, it returned $6.4 million to shareholders through dividends, which makes JBT one of the best 52-week low stocks that pay dividends. The company pays a quarterly dividend of $0.10 per share and has a dividend yield of 0.45%, as of September 4.
Insider Monkey’s database of Q2 2024 indicated that 19 hedge funds held stakes in John Bean Technologies Corporation’s (NYSE:JBT), which remained unchanged from the previous quarter. These stakes have a total value of over $226.4 million. Among these hedge funds, Royce & Associates was the company’s leading stakeholder in Q2.
