Jeffrey Smith‘s Starboard Value has discarded another 900,000 shares of its Brink’s Company (NYSE:BCO) stake according to a new 13D filing, lowering its ownership position in the stock to just under 3.03 million shares, a 6.1% stake in the company. The latest move comes nearly two weeks after Starboard Value reported the sale of 650,000 shares of the stock, which lowered its ownership stake to 7.9% at the time. That previous 13D filing reported that Starboard Value intends to remain a large shareholder (5% stake) in the company, and that Starboard’s Peter Feld will remain a member of Brink’s Board. Starboard also noted that the sale was executed for the purposes of portfolio rebalancing, given the immense gains that the stock has made in recent quarters. Shares of Brink’s have appreciated by 27% in the past three months, by 47% in the past six months, and by 79% over the past year.
Mr. Smith’s activist hedge fund first took a stake in Brink’s Company (NYSE:BCO) in the first quarter of 2015 and struck a deal with the company in early-2016 which saw Mr. Feld and two other nominees elected to its Board. In a letter to the company in October 2015, Starboard Value noted that there was room for significant improvement of the company’s margins through better execution and pressured the company to improve its route logistics operations. Brink’s announced very strong fourth quarter results in early-February of this year, as its renewed efforts bore fruit. The company also unveiled a three-year strategic plan at its recent investor’s meeting, which includes targeting annual revenue growth of 5% over the next three years, in addition to EPS growth of 71% and operating margin growth of 69%. We recently ranked five companies that are poised to benefit in 2017 from Mr. Smith’s successful activism.
Billionaire Mario Gabelli is another major Brink’s shareholder which recently took some profit off the table from the stock’s recent run, unloading 23% of its stake in the fourth quarter. That left GAMCO Investors with 1.58 million shares valued at $65.26 million at the end of 2016. Overall, 23 hedge funds in our database owned 19% of Brink’s float on December 31.
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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 |
|---|---|---|---|---|---|---|
| STARBOARD VALUE | 3,028,930 | 3,028,930 | 3,028,930 | 3,028,930 | 3,028,930 | 6.1% |
| STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD | 1,766,849 | 3,028,930 | 1,766,849 | 3,028,930 | 1,766,849 | 3.5% |
| STARBOARD VALUE AND OPPORTUNITY S | 459,472 | 3,028,930 | 459,472 | 3,028,930 | 459,472 | Less than 1% |
| STARBOARD VALUE AND OPPORTUNITY C | 252,108 | 252,108 | 252,108 | Less than 1% | ||
| STARBOARD VALUE R | 252,108 | 252,108 | 252,108 | Less than 1% | ||
| STARBOARD VALUE R GP | 252,108 | 252,108 | 252,108 | Less than 1% | ||
| STARBOARD VALUE GP | 3,028,930 | 3,028,930 | 3,028,930 | 6.1% | ||
| STARBOARD PRINCIPAL CO | 3,028,930 | 3,028,930 | 3,028,930 | 6.1% | ||
| STARBOARD PRINCIPAL CO GP | 3,028,930 | 3,028,930 | 3,028,930 | 6.1% | ||
| JEFFREY C. SMITH | 3,028,930 | 6.1% | ||||
| MARK R. MITCHELL | 3,028,930 | 6.1% | ||||
| PETER A. FELD | 3,028,930 | 6.1% |
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Page 1 of 20 – SEC Filing
(Name, Address and Telephone Number of Person
