Scopia Capital Management LP
revealed that they own a 11.8% stake in Itron, Inc. (NASDAQ:ITRI) in a Form 13D/A disclosure that was filed with the Securities and Exchange Commission (SEC) on Thursday, November 2nd. The investor owns 4,558,387 shares of the stock worth approximately $356,237,944. The reporting parties listed on the disclosure included Scopia Capital Management LP, Scopia Management, Inc, Matthew Sirovich and Jeremy Mindich. The disclosure is available through EDGAR at this hyperlink.
Scopia Capital Management LP
provided the following explanation of their ownership:
Item 4 of Schedule 13D is supplemented and superseded, as the case may be, as follows:
As disclosed in Amendment No. 4 to this Schedule 13D, on December 9,2015, the Reporting Persons entered into a Cooperation Agreement (the “Cooperation Agreement”) with the Issuer pursuant to which, among other things, the Reporting Persons obtained representation on the Board of Directors of the Issuer. Under the Cooperation Agreement, the Reporting Persons agreed to certain standstill restrictions, including a limitation on beneficial ownership of securities of the Issuer. On November 1,2017, the Cooperation Agreement was amended (the “First Amendment to Cooperation Agreement”) to increase this limitation on beneficial ownership from 12.5% to 15.0% of the shares of Common Stock outstanding. In addition, pursuant to the First Amendment to Cooperation Agreement, the Coppersmith Entities (as defined in the First Amendment to Cooperation Agreement) and Craig Rosenblum were removed as parties to the Cooperation Agreement as the Coppersmith Entities were previously dissolved.
The foregoing description of the First Amendment to Cooperation Agreement is qualified in its entirety by reference to the full text of such amendment, which is filed as Exhibit 99.2 hereto and is incorporated herein by reference.
The Reporting Persons intend to review their investment in the Issuer on a continuing basis and may from time to time and at any time in the future depending on various factors, including, without limitation, the outcome of any discussions with directors and officers of the Issuer, the Issuer’s financial position and strategic direction, actions taken by the Board, price levels of the Issuer’s securities, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, take such actions with respect to the investment in the Issuer as they deem appropriate. These actions may include: (i) acquiring additional shares of Common Stock and/or other equity, debt, notes, other securities, or derivative or other instruments that are based upon or relate to the value of securities of the Issuer (collectively, “Securities”) in the open market or otherwise; (ii) disposing of any or all of their Securities in the open market or otherwise; (iii) engaging in any hedging or similar transactions with respect to the Securities; or (iv) proposing or considering one or more of the actions described in subsections (a) through (j) of Item 4 of Schedule 13D.
Except as set forth herein or previously disclosed in the Schedule 13D, the Reporting Persons do not have present plans or proposals at this time that relate to or would result in any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.
A number of other large investors have also recently made changes to their positions in the stock. Chicago Equity Partners LLC grew its stake in Itron by 2.5% in the third quarter. Chicago Equity Partners LLC now owns 35,705 shares of the scientific and technical instruments company’s stock worth $2,765,000 after purchasing an additional 855 shares in the last quarter. Foundry Partners LLC grew its stake in Itron by 7.4% in the third quarter. Foundry Partners LLC now owns 237,217 shares of the scientific and technical instruments company’s stock worth $18,372,000 after purchasing an additional 16,443 shares in the last quarter. Mesirow Financial Investment Management Equity Management grew its stake in Itron by 2.5% in the third quarter. Mesirow Financial Investment Management Equity Management now owns 301,105 shares of the scientific and technical instruments company’s stock worth $23,322,000 after purchasing an additional 7,290 shares in the last quarter. Crossmark Global Holdings Inc. bought a new position in Itron in the third quarter worth approximately $623,000. Finally, Nationwide Fund Advisors grew its stake in Itron by 1.8% in the third quarter. Nationwide Fund Advisors now owns 53,652 shares of the scientific and technical instruments company’s stock worth $4,155,000 after purchasing an additional 939 shares in the last quarter. 93.49% of the stock is currently owned by institutional investors.
Itron (NASDAQ:ITRI) last issued its earnings results on Wednesday, November 1st. The scientific and technical instruments company reported $0.77 EPS for the quarter, missing analysts’ consensus estimates of $0.89 by ($0.12). The firm had revenue of $486.75 million for the quarter, compared to analyst estimates of $526.55 million. Itron had a return on equity of 15.43% and a net margin of 1.60%. The business’s revenue for the quarter was down 4.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.77 EPS.
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ITRI has been the subject of a number of analyst reports. Robert W. Baird restated an “outperform” rating and set a $73.00 target price on shares of Itron in a report on Thursday, July 13th. Canaccord Genuity lowered Itron from a “buy” rating to a “hold” rating and set a $78.00 target price for the company. in a report on Tuesday, September 19th. JMP Securities set a $102.00 target price on Itron and gave the stock a “buy” rating in a report on Thursday, October 12th. Zacks Investment Research lowered Itron from a “buy” rating to a “hold” rating in a report on Friday, August 25th. Finally, Cowen and Company set a $60.00 target price on Itron and gave the stock a “hold” rating in a report on Friday, July 21st. Four research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $81.78.
Itron Company Profile
Itron, Inc (Itron) is a technology and service company. The Company provides solutions that measure, manage and analyze energy and water use. The Company operates through three segments: Electricity, Gas and Water. It provides a portfolio of products, solutions, software and services to electric, gas and water utility customers across the globe.
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