We wrote recently about Glenn W. Welling‘s Engaged Capital slashing its stake in Outerwall Inc (NASDAQ:OUTR) to 6.1%, after the company inked a merger agreement with Apollo Global Management. The fund has since slashed its stake further, as it counts ownership of just 90,003 common shares, which amass less than 1% of Outerwall’s outstanding stock, according to the activist fund’s latest amended 13D/A filing with the SEC. Given the merger agreement, Engaged Capital’s move to further unwind its stake was somewhat expected, as it takes profit from its position, which was initiated during the fourth quarter of 2015. Shares slumped hard late in that quarter, offering a great entry point for investors, and Engaged Capital heavily added to its stake in the first quarter as shares hit five-year lows.
Outerwall is a retail operator that owns and runs special self-service kiosks for renting video games and movies, as well as coin cashing machines. Year-to-date, the company’s stock is up by 41.84%. For the second quarter of 2016, Outerwall disclosed earnings per share from continuing operations of $2.38 and revenue of $518 million, topping the estimates of $1.37 for EPS and $487 million for revenue. At the end of July, B. Riley reiterated its ‘Buy’ rating on Outerwall’s stock, with a price target of $58, while Dougherty & Co downgraded its rating to ‘Sell’ from ‘Neutral’.
Outerwall’s investors in our database at the end of the second quarter included Debra Fine’s Fine Capital Partners, with a position valued at $51.25 million, Allan Mecham and Ben Raybould’s Arlington Value Capital, which held $43.66 million worth of shares, and Philippe Laffont’s Coatue Management. Some of the smart money managers who decided to dump Outerwall (NASDAQ:OUTR) during the second quarter, included Paul Marshall and Ian Wace’s Marshall Wace LLP, which sold its position valued at almost $1.5 million on March 31, Mario Gabelli’s GAMCO Investors, which said goodbye to a $344,000 holding, and Benjamin A. Smith’s Laurion Capital Management.
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You can access the original SEC filing by clicking here.
Ownership Summary Table
Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
---|---|---|---|---|---|---|
Engaged Capital Flagship Master Fund | 25,333 | 25,333 | 25,333 | Less than 1% | ||
Engaged Capital Co-Invest III | 61,116 | 61,116 | 61,116 | Less than 1% | ||
Engaged Capital Flagship Fund | 25,333 | 25,333 | 25,333 | Less than 1% | ||
Engaged Capital Flagship Fund, Ltd | 25,333 | 25,333 | 25,333 | Less than 1% | ||
Engaged Capital | 90,003 | 90,003 | 90,003 | Less than 1% | ||
Engaged Capital Holdings | 90,003 | 90,003 | 90,003 | Less than 1% | ||
Glenn W. Welling | 90,003 | 90,003 | 90,003 | Less than 1% |
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Page 1 of 13 – SEC Filing
(Name, Address and Telephone Number of Person
Page 2 of 13 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Flagship Master Fund, LP | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS WC, OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION CAYMAN ISLANDS | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 25,333 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 25,333 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 25,333 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% | ||
14 | TYPE OF REPORTING PERSON PN |
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Page 3 of 13 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Co-Invest III, L.P. | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS WC | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 61,116 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 61,116 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 61,116 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% | ||
14 | TYPE OF REPORTING PERSON PN |
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Page 4 of 13 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Flagship Fund, LP | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 25,333 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 25,333 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 25,333 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% | ||
14 | TYPE OF REPORTING PERSON PN |
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Page 5 of 13 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Flagship Fund, Ltd. | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION CAYMAN ISLANDS | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 25,333 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 25,333 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 25,333 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% | ||
14 | TYPE OF REPORTING PERSON CO |
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Page 6 of 13 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital, LLC | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 90,003 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 90,003 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 90,003 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% | ||
14 | TYPE OF REPORTING PERSON OO |
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Page 7 of 13 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Holdings, LLC | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 90,003 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 90,003 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 90,003 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% | ||
14 | TYPE OF REPORTING PERSON OO |
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Page 8 of 13 – SEC Filing
1 | NAME OF REPORTING PERSON Glenn W. Welling | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION USA | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 90,003 | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 90,003 | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 90,003 | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) Less than 1% | ||
14 | TYPE OF REPORTING PERSON IN |
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Page 9 of 13 – SEC Filing
Item 3. | Source and Amount of Funds or Other Consideration. |
Item 5. | Interest in Securities of the Issuer. |
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Page 10 of 13 – SEC Filing
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Page 11 of 13 – SEC Filing
Engaged Capital Flagship Master Fund, LP | |||
By: | Engaged Capital, LLC General Partner | ||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Founder and Chief Investment Officer |
Engaged Capital Co-Invest III, L.P. | |||
By: | Engaged Capital, LLC General Partner | ||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Founder and Chief Investment Officer |
Engaged Capital Flagship Fund, LP | |||
By: | Engaged Capital, LLC General Partner | ||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Founder and Chief Investment Officer |
Engaged Capital Flagship Fund, Ltd. | |||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Director |
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Page 12 of 13 – SEC Filing
Engaged Capital, LLC | |||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Founder and Chief Investment Officer |
Engaged Capital Holdings, LLC | |||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Sole Member |
/s/ Glenn W. Welling | |
Glenn W. Welling |
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Page 13 of 13 – SEC Filing
Nature of the Transaction | Securities Purchased/(Sold) | Price Per Share($) | Date of Purchase / Sale |
Sale of Common Stock | (5,602) | 52.2100 | 08/12/2016 |
Sale of Common Stock | (22,520) | 52.2002 | 08/12/2016 |
Sale of Common Stock | (14,650) | 52.2138 | 08/15/2016 |
Sale of Common Stock | (58,634) | 52.2319 | 08/16/2016 |
Sale of Common Stock | (9,853) | 52.2511 | 08/16/2016 |
Sale of Common Stock | (535) | 52.1866 | 08/17/2016 |
Sale of Common Stock | (104,156) | 52.1817 | 08/17/2016 |
Sale of Common Stock | (33,157) | 52.2312 | 08/17/2016 |
Sale of Common Stock | (22,520) | 52.1811 | 08/17/2016 |
Sale of Common Stock | (13,512) | 52.2100 | 08/12/2016 |
Sale of Common Stock | (54,321) | 52.2002 | 08/12/2016 |
Sale of Common Stock | (35,337) | 52.2138 | 08/15/2016 |
Sale of Common Stock | (141,432) | 52.2319 | 08/16/2016 |
Sale of Common Stock | (23,765) | 52.2511 | 08/16/2016 |
Sale of Common Stock | (79,979) | 52.2312 | 08/17/2016 |
Sale of Common Stock | (1,290) | 52.1866 | 08/17/2016 |
Sale of Common Stock | (251,234) | 52.1817 | 08/17/2016 |
Sale of Common Stock | (54,321) | 52.1811 | 08/17/2016 |
Sale of Common Stock | (786) | 52.2100 | 08/12/2016 |
Sale of Common Stock | (3,159) | 52.2002 | 08/12/2016 |
Sale of Common Stock | (2,055) | 52.2138 | 08/15/2016 |
Sale of Common Stock | (1,382) | 52.2511 | 08/16/2016 |
Sale of Common Stock | (8,225) | 52.2319 | 08/16/2016 |
Sale of Common Stock | (14,610) | 52.1817 | 08/17/2016 |
Sale of Common Stock | (4,651) | 52.2312 | 08/17/2016 |
Sale of Common Stock | (3,159) | 52.1811 | 08/17/2016 |
Sale of Common Stock | (75) | 52.1866 | 08/17/2016 |