February 8, 2021 BARRON’S M7
INSIDE SCOOP
Texas Instruments
Director Buys the Dip
able for comment on his stock
purchase.
Craighead, a former chairman and
CEO ofBaker Hughes(BKR), joined
the Texas Instruments board in 2018.
Craighead is the only Texas Instru-
ments insider to buy the company’s
stock on the open market since he
picked up $1 million worth of shares
in October 2018.
Wall Street was upbeat on Texas
Instruments’ earnings, even if the
market wasn’t. J.P. Morgan analyst
Harlan Sur reiterated an Overweight
rating on Texas Instruments stock,
raised estimates, and lifted the target
price to $200 from $165. “Looking
ahead,” Sur wrote, “we continue
to see positive earnings-per-share
revisions as we move through 2021.”
Texas Instruments stock surged
27.9% in 2020, topping the 16.3% rise
in the S&P 500. Shares are up about
4% in 2021, ahead of the index.B
Texas Instruments
director Martin
Craighead bought
$1 million of the
chip maker’s
shares.It’s his
first open-market
stock buy since
2018.
Decreases in
Holdings
Build-A-Bear Workshop
(BBW)
Solas Capital Managementlow-
ered its stake in the stuffed-toy
chain, citing “recent volatility in the
market price” and a need to manage
exposure to Build-A-Bear stock.
Solas sold 998,984 Build-A-Bear
shares on Jan. 27 and Jan. 28 for
a total of $7.1 million, a per share
average price of $7.14, which is 67%
above the closing price on Dec. 31.
Solas noted that it “continue[s] to
believe shares are undervalued and
represent an attractive investment
opportunity...[we] are pleased to
remain shareholders of the com-
pany.” Solas now owns 501,016
Build-A-Bear shares, a 3.1% stake
in the company’s outstanding
shares.
Axonics Modulation
Technologies(AXNX)
Andera Partnersreported a
smaller stake of 1,987,282 shares in
the medical-device maker. Andera
Partners sold a total of 365,200
Axonics Modulation shares from
Jan. 1 through Jan. 28 at per share
prices ranging from $50 to $56.01.
Following the stock sale, Andera
Partners’ interest in Axonics
stands at 4.99%. Since Andera’s
stake has fallen below the 5%
threshold, it is no longer obligated
to report any further sales of Ax-
onics stock. Andera can sell its
remaining interest without further
disclosure.
Aviat Networks(AVNW)
Steel Partners Holdings(SPLP)
disclosed the sale of 200,000
shares of the microwave-network-
ing technology firm at prices rang-
ing from $38.99 to $42.08. The
sales occurred on Feb. 1 and Feb. 2,
and reduced Steel Partners’ posi-
tion in Aviat Networks by nearly
half. No reason was given for Steel
Partners’ slashing its interest to
4.1%, or 223,537 Aviat Networks
shares. That figure excludes shares
owned directly by Steel Partners
senior vice president Kenneth
Kong, who serves on Aviat Net-
works’ board.
Activism Is
On the Rise
In Japan
POWER PLAY
T
exas Instrumentsstock
swooned after its fourth-
quarter report, and direc-
tor Martin Craighead
bought the dip.
Texas Instruments
(ticker: TXN) topped both
earnings and guidance expectations
late on Jan. 26, but shares slid 5% the
next day. By Jan. 28, the chip giant’s
shares still hadn’t recovered the
ground it had lost—and that’s when
Craighead bought the stock on the
open market.
Craighead paid $1 million for 5,975
Texas Instruments shares, a per share
average price of $166.91. According to
a form he filed with the Securities and
Exchange Commission, he now owns
21,388 Texas Instruments shares.
Texas Instruments didn’t respond
to a request to make Craighead avail-
By ED LIN
A
ctivist investors are increas-
ingly setting their sights on
Japan.
Consider Japanese con-
glomerateToshiba(ticker:
6502.Japan), which is facing de-
mands from two hedge funds to
hold an extraordinary general
shareholders meeting, or EGM. The
funds control a combined 15% of the
shares but aren’t working together.
In mid-December, Effissimo
Capital Management requested an
EGM to investigate whether share-
holders’ voting rights were compro-
mised at last year’s meeting. About
a week later, Farallon Capital Man-
agement called for a meeting for
Toshiba to explain a shift in growth
strategy made without consulting
shareholders.
Toshiba set a record date of Feb.
1 but has yet to announce the actual
date, though it said a meeting
would occur before May 1. Toshiba
reports earnings on Feb. 12, when it
could announce settlements with
the funds or a meeting date.
In response to a request for com-
ment, Toshiba said it’s “examining
the details of the demand and will
announce its decision in due
course.”
Such challenges in Japan have
been rare, but recent changes to
make its companies more competi-
tive have eased things for activists.
In 2019, Japan was the largest
center for activism outside of the
U.S., with 19 campaigns launched
and $4.5 billion in capital deployed,
according to Lazard. Last year, mo-
mentum increased even as global
activism slowed: Japan saw 24 cam-
paigns with $7.7 billion deployed.
The outcome of the Toshiba
showdown will suggest just how
willing corporate Japan is to chang-
ing the way it does business.B
By CARLETON ENGLISH
Activist Holdings
W.R. Grace(GRA)
40 North Managementrevealed
a 4.9% interest in the specialty
chemical and materials manufac-
turer, equal to 9,865,008 shares.
On Jan. 11, 40 North Management
launched an all-cash bid of $65 per
share to acquire W.R. Grace. 40
North Management said at the
time that the offer would remain
in good standing if it was given
“access to due diligence materials.”
On Feb. 1, 40 North Management
received that access and entered
into a confidentiality letter agree-
ment with W.R. Grace. As part of the
agreement, 40 North Management
will abide by customary standstill
provisions and “will refrain from
taking certain actions” until the end
of March 31. The standstill ends if
another party commences a tender
offer that results in the buyer or its
affiliates owning half or more of W.R.
Grace’s common stock. The agree-
ment also gives 40 North Manage-
ment the opportunity to nominate a
director for W.R. Grace’s board at the
upcoming 2021 annual shareholder
meeting. 40 North Management
noted that the total purchase price for
the shares it owns was $640,071,630,
or $64.88 each, on average.
These disclosures are
from 13Ds filed with
the Securities and
Exchange Commission.
13Ds are filed within
10 days of an entity’s
attaining more than
5% in any class of a
company’s securities.
Subsequent changes
in holdings or inten-
tions must be re-
ported in amended
filings. This material is
from Jan. 28 through
Feb. 3, 2021. Source:
InsiderScore.com