Mercury Systems (MRCY)
Jana Partners has increased its stake in the government and aerospace contractor, now holding 4,655,249 shares. Jana acquired 3,303,841 shares of Mercury Systems between June 23 and July 5 at prices ranging from $30.99 to $35.28 per share. This brings Jana’s ownership in the company to 8%. On July 6, Mercury Systems and Jana reached a voting agreement, resulting in the appointment of Jana managing partner Scott Ostfeld to Mercury’s board. As part of the agreement, Jana will vote in favor of the firm’s slate of directors using their Mercury shares.
In addition, the agreement stipulates that Jana will support any amendments to Mercury Systems’ stock incentive plan, unless Institutional Shareholder Services or Glass Lewis & Co. recommends otherwise. If either ISS or Glass Lewis advises against the approval of such amendments, Jana may align its voting decisions with those of ISS or Glass Lewis.
Increases in Holdings
Flushing Financial (FFIC)
Gamco Investors (GBL) has raised its position in Flushing Financial, the holding company for Uniondale, N.Y.-based Flushing Bank, to a total of 2,033,363 shares. Between May 10 and July 7, Gamco purchased a net of 119,099 Flushing Financial shares at prices ranging from $9.33 to $15.05 per share. Gamco now holds a 6.9% interest in Flushing Financial. Unfortunately, shares have experienced a decline of approximately 36% year-to-date.
Decreases in Holdings
Quotient Technology (QUOT)
Engaged Capital decreased its position in the digital-advertising services company to 4,905,332 shares. From June 13 through July 7, Engaged Capital sold 3,201,718 shares of Quotient Technology at per-share prices ranging from $3.80 to $3.90. As a result, Engaged Capital now owns 4.97% of Quotient’s outstanding stock, which is below the 5% threshold requiring disclosure of any further stock sales.
In late June, Quotient announced its acquisition by Neptune Retail Solutions for $4 per share in cash, valuing the company at approximately $430 million. Upon the announcement of the deal, Engaged Capital entered into a cooperative agreement with Quotient to vote its shares in favor of the acquisition. Quotient’s stock has experienced a 12% increase this year.
Elliott Management reduced its stake in the offshore drilling-rig operator by selling 356,141 shares, bringing its total holdings down to 7,057,258 Seadrill shares. The sales occurred from May 15 to May 22, with prices ranging from $35.45 to $38.00 per share. Currently, Elliott holds 8.8% of Seadrill’s outstanding stock.
In addition, Elliott disclosed that its affiliate, Elliott Funds, entered into cash-settled swap agreements for 5,444,919 Seadrill shares. However, these swaps only grant Elliott the “economic results of ownership” in Seadrill’s stock and not the actual shares.
Seadrill’s shares have seen a 40% increase so far in 2023 and an 80% increase over the past 12 months.