When a person or group of persons acquires beneficial ownership of more than 5% of a company’s equity securities, they are required to file a Schedule 13D or 13G with the SEC.
If these groups intend to influence management into changing the business strategy, they are considered “activist” investors. There is considerable academic research that suggest activist investors contribute to excess returns in equities in the subsequent twelve months after the event.
Investors that acquire 10% or more of a company’s shares, or that gain a board seat, are considered insiders by the SEC and are subject to stricter insider trading filing requirements.
Investors that acquire more than 5% of the shares of a company and intend to influence management are considered activist investors and must file a 13D, and investors that acquire more than 5% of the shares of a company but have no intention of influencing management are considered passive investors and must file a 13G.
Here are 9 recent notable filings:
New Passive Investor Filings
Cumberland Pharmaceuticals Inc. (NASDAQ:CPIX) – Stonepine Capital Management, LLC has filed a new SC 13G, reporting a 6.80% ownership stake in Cumberland Pharmaceuticals.
Chanticleer Holdings, Inc. (NASDAQ:HOTR) – Ezralow Bryan has filed a new SC 13G, reporting a 5.10% ownership stake in Chanticleer Holdings.
Recro Pharma, Inc. (NASDAQ:REPH) – LYTTON LAURENCE W has filed a new SC 13G, reporting a 6.20% ownership stake in Recro Pharma.
Amended Activist Investor Filings
Superior Drilling Products, Inc. (NYSEMKT:SDPI) – Lone Star Value Management LLC has filed an amended Schedule 13D/A, reporting a 8.30% ownership stake in Superior Drilling Products. This is a decrease of 9.78% from their previous filing.
Peregrine Pharmaceuticals, 10.50% Ser E Cumulative Convertible Preferred Stock (NASDAQ:PPHMP) – Ronin Capital, LLC has filed an amended Schedule 13D/A, reporting a 6.80% ownership stake in Peregrine Pharmaceuticals, 10.50% Ser E Cumulative Convertible Preferred Stock. This is an increase of 17.24% from their previous filing.
Herc Holdings Inc. (NYSE:HRI) – GAMCO INVESTORS, INC. ET AL has filed an amended Schedule 13D/A, reporting a 3.88% ownership stake in Herc Holdings. This is an increase of 7.48% from their previous filing.
Farmer Brothers Co. (NASDAQ:FARM) – Waite Carol Farmer has filed an amended Schedule 13D/A, reporting a 3.70% ownership stake in Farmer Brothers. This is a decrease of 33.93% from their previous filing.
Finish Line, Inc. (THE) (NASDAQ:FINL) – Sports Direct International plc has filed an amended Schedule 13D/A, reporting a 9.20% ownership stake in Finish Line. This is an increase of 16.46% from their previous filing.
Allison Transmission Holdings, Inc. (NYSE:ALSN) – Ashe Capital Management, LP has filed an amended Schedule 13D/A, reporting an updated ownership stake in Allison Transmission Holdings.
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