The New Richard Mcguire’s Marcato Capital Management Lp Holding in Sothebys
Marcato Capital Management Lp filed with the SEC SC 13D/A form for Sothebys. The form can be accessed here: 000119312516730520. As reported in Richard Mcguire’s Marcato Capital Management Lp’s form, the filler as of late owns 4.9% or 2,620,048 shares of the Consumer Discretionary–company.
Sothebys stake is a new one for the for the hedge fund and it was filed because of activity on October3, 2016. We feel this shows Richard Mcguire’s Marcato Capital Management Lp’s positive view for the stock. For a hedge fund managing $3.47 billion in assets and having 15+ active experts, we at Financialmagazine have no doubt the buy is a bullish signal.
The hedge fund is active investor in the Finance sector. In the manager’s last 13-F, we saw 25% of Richard Mcguire’s Marcato Capital Management Lp’s US equities portfolio is in this sector.
Reasons Why Richard Mcguire’s Marcato Capital Management Lp Bought – Sothebys Stock
Item4. Purpose of Transaction
The responses to Items 3, 5 and 6 of the Schedule 13D are incorporated herein by reference.
On October3, 2016, Marcato, L.P. and Marcato II, L.P. (collectively, the “Sellers”) entered into a Share Repurchase Agreement (the “ShareRepurchase Agreement”) with the Issuer pursuant to which the Issuer agreed to purchase 2,050,000 Shares from the Sellers (the “Repurchase Transaction”) at a per Share price of $36 and an aggregate purchase price of $73,800,000.Pursuant to the Share Repurchase Agreement, Marcato, L.P. agreed to sell 2,006,345 Shares and Marcato II, L.P. agreed to sell 43,655 Shares. The Repurchase Transaction was consummated on October4, 2016.
The foregoing description of the Share Repurchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text ofthe Share Repurchase Agreement, which is incorporated by reference as Exhibit 1 and is incorporated herein by reference.
In connection with theRepurchase Transaction, the Sellers, Marcato, Marcato International Master Fund, Ltd. and Richard T. McGuire III (collectively, the “Marcato Parties”) entered into a Confidentiality Agreement, dated October3, 2016 (the“Confidentiality Agreement”), with the Issuer pursuant to which the Issuer provided the Marcato Parties with certain information necessary to evaluate the decision to enter into the Share Repurchase Agreement. Pursuant to theConfidentiality Agreement, the Marcato Parties have agreed not to trade in, purchase or sell any securities of the Issuer until two business days after the time the Issuer announces earnings for the third quarter of 2016.
The foregoing description of the Confidentiality Agreement does not purport to be complete and is qualified in its entirety by reference to the full text ofthe Confidentiality Agreement, which is incorporated by reference as Exhibit 2 and is incorporated herein by reference.
Sothebys Institutional Sentiment
Latest Security and Exchange filings show 235 investors own Sothebys. The institutional ownership in Q3 2015 is very high, at 122.98% of the outstanding shares. This is decreased by 4782721 the total institutional shares. 67799355 were the shares owned by these institutional investors. In total 31 funds opened new Sothebys stakes, 87 increased stakes. There were 37 that closed positions and 77 reduced them.
5 managers had the stock in their top Ten. Notable investors are: Marcato Capital Management Lp, Shanda Asset Management Holdings Ltd..
Villere St Denis J & Co Llc is an institutional investor bullish on Sothebys, owning 2693147 shares as of Q3 2015 for 4.56% of its portfolio. Arrowgrass Capital Partners Llp owns 150000 shares or 2.55% of its portfolio. CA Marcato Capital Management Lp have 10.55% of their stock portfolio for 6571806 shares. Further, Lmcg Investments Llc reported stake worth 0.91% of its US stock portfolio. The NY Jericho Capital Asset Management Lp owns 2319885 shares. Sothebys is 4.62% of the manager’s US portfolio.
Sotheby’s is a global art business company. The Company operates in two segments: Agency and Finance. The Agency segment earns commissions by matching buyers and sellers of authenticated fine art, decorative art, jewelry, wine and collectibles (collectively, art or works of art or artwork or property) through the auction or private sale process. Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process and the activities of RM Sotheby’s. The Finance segment earns interest income through art-related financing activities by making loans that are secured by works of art. Its activities include Sotheby’s retail wine operations, Acquavella Modern Art, an equity investee, and sales of the remaining inventory of Noortman Master Paintings, an art dealer that was owned and operated by Sotheby’s are reported within all other segment.
SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.
Richard Mcguire’s Marcato Capital Management Lp website.
Insitutional Activity: The institutional sentiment decreased to 0.57 in 2016 Q2. Its down 0.10, from 0.67 in 2016Q1. The ratio worsened, as 37 funds sold all Sothebys shares owned while 78 reduced positions. 27 funds bought stakes while 38 increased positions. They now own 55.16 million shares or 4.11% less from 57.52 million shares in 2016Q1.
State Treasurer State Of Michigan has 20,927 shares for 0% of their US portfolio. Pinnacle Assoc Ltd last reported 796,918 shares in the company. Moreover, California Pub Employees Retirement System has 0.01% invested in Sothebys (NYSE:BID) for 182,300 shares. Glenmede Communication Na holds 525 shares or 0% of its portfolio. Virginia Retirement Sys Et Al holds 47,900 shares or 0.02% of its portfolio. Invesco reported 90,214 shares or 0% of all its holdings. Rhumbline Advisers has 109,767 shares for 0.01% of their US portfolio. The Switzerland-based Zurcher Kantonalbank (Zurich Cantonalbank) has invested 0% in Sothebys (NYSE:BID). Alliancebernstein L P has invested 0.06% of its portfolio in Sothebys (NYSE:BID). Amalgamated National Bank & Trust holds 0.01% or 6,387 shares in its portfolio. Arcadia Invest Mngmt Mi last reported 500 shares in the company. Cwm Ltd Liability Com holds 0% of its portfolio in Sothebys (NYSE:BID) for 2 shares. Wolverine Asset Mngmt Ltd Llc has 6,150 shares for 0% of their US portfolio. Hall Laurie J Trustee holds 0% of its portfolio in Sothebys (NYSE:BID) for 250 shares. Envestnet Asset Mgmt accumulated 0% or 2,201 shares.
Insider Transactions: Since May 11, 2016, the stock had 6 insider purchases, and 1 insider sale for $2.00 million net activity. DE SOLE DOMENICO also bought $200,536 worth of Sothebys (NYSE:BID) on Thursday, June 2. Another trade for 50,000 shares valued at $1.39 million was made by GOSS MICHAEL F on Wednesday, May 11. 2,000 shares were bought by WEIBLING DENNIS M, worth $56,060 on Tuesday, May 17. 542 Sothebys (NYSE:BID) shares with value of $18,601 were sold by DELANEY KEVIN M. Wilson Harry James had bought 5,000 shares worth $151,421.
Analysts await Sothebys (NYSE:BID) to report earnings on November, 14. They expect $-0.34 earnings per share, down 30.77% or $0.08 from last year’s $-0.26 per share. After $1.51 actual earnings per share reported by Sothebys for the previous quarter, Wall Street now forecasts -122.52% negative EPS growth.
About 932,747 shares traded hands or 27.68% up from the average. Sothebys (NYSE:BID) has risen 54.80% since March 1, 2016 and is uptrending. It has outperformed by 45.56% the S&P500.
Sotheby’s is a global art business company. The company has a market cap of $2.01 billion. The Firm operates in two divisions: Agency and Finance. It has a 56.54 P/E ratio. The Agency segment earns commissions by matching buyers and sellers of authenticated fine art, decorative art, jewelry, wine and collectibles through the auction or private sale process.
Sothebys (NYSE:BID) Ratings Coverage
Out of 8 analysts covering Sotheby’s (NYSE:BID), 1 rate it a “Buy”, 0 “Sell”, while 7 “Hold”. This means 13% are positive. $49.0 is the highest target while $25 is the lowest. The $32.50 average target is -12.66% below today’s ($37.21) stock price. Sotheby’s has been the topic of 12 analyst reports since July 28, 2015 according to StockzIntelligence Inc. Standpoint Research downgraded the shares of BID in a report on Thursday, April 14 to “Hold” rating. Stifel Nicolaus maintained the shares of BID in a report on Friday, December 18 with “Buy” rating. The rating was downgraded by TheStreet on Tuesday, July 28 to “Hold”. On Thursday, September 3 the stock rating was maintained by Williams Capital Group with “Buy”. The firm earned “Hold” rating on Thursday, February 11 by Stifel Nicolaus. The company was initiated on Wednesday, January 20 by Standpoint Research. The firm has “Mkt Perform” rating by Barrington Research given on Friday, February 26. The company was downgraded on Thursday, February 11 by Sitfel. The firm earned “Buy” rating on Tuesday, November 10 by Stifel Nicolaus.
More important recent Sothebys (NYSE:BID) news were published by: Bloomberg.com which released: “Sotheby’s to Purchase $73.8 Million in Shares From Marcato” on October 04, 2016, also Fortune.com published article titled: “Why Investors Are Watching Sotheby’s and the Art Market”, Nytimes.com published: “At Sotheby’s, the ‘100-Carat’ Man” on September 11, 2016. More interesting news about Sothebys (NYSE:BID) was released by: Bloomberg.com and their article: “Historic Bordeaux Goes on Sale at Sotheby’s in London This Month” with publication date: October 02, 2016.
According to Zacks Investment Research, “Sotheby’s Holdings, Inc. is one of the world’s second largest auctioneers of fine arts, antiques and collectibles, offering property in collecting categories, among them paintings, jewelry, decorative arts, and books. Sotheby’s Holdings, Inc is the parent company of Sotheby’s worldwide auction businesses, art-related financing and private sales activities. The Company operates in countries, with principal salesrooms located in New York and London. The company also regularly conducts auctions in other salesrooms around the world, including Australia, Hong Kong, France, Italy, the Netherlands, Switzerland and Singapore.”
BID Company Profile
Sotheby’s, incorporated on March 30, 2006, is a global art business company. The Firm operates in two divisions: Agency and Finance. The Agency segment earns commissions by matching buyers and sellers of authenticated fine art, decorative art, jewelry, wine and collectibles (collectively, art or works of art or artwork or property) through the auction or private sale process. The Company’s Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process and the activities of RM Sotheby’s. The Finance segment earns interest income through art-related financing activities by making loans that are secured by works of art. Activities, including Sotheby’s retail wine operations, Acquavella Modern Art (AMA), an equity investee, and sales of the remaining inventory of Noortman Master Paintings, an art dealer that was owned and operated by Sotheby’s are reported within all other segment. All other segment also includes Sotheby’s brand licensing activities and other ancillary businesses.
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