Noteworthy SEC Filing: Usa Technologies Inc: Legion Partners Asset Management Opened Big New Position

Noteworthy SEC Filing: Usa Technologies Inc: Legion Partners Asset Management Opened Big New Position

The New Legion Partners Asset Management Holding in Usa Technologies Inc

Legion Partners Asset Management filed with the SEC SC 13D form for Usa Technologies Inc. The form can be accessed here: 000156020716000018. As reported in Legion Partners Asset Management’s form, the filler as of late owns 9.94% or 44,250 shares of the Information Technology–company.

Usa Technologies Inc stake is a new one for the and it was filed because of activity on October 5, 2016. We feel this shows Legion Partners Asset Management’s positive view for the stock.

Reasons Why Legion Partners Asset Management Bought – Usa Technologies Inc Stock

Purpose of Transaction

The Reporting Persons purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.

The Reporting Persons have become increasingly concerned with the Issuer’s lack of profitability. On September 13, 2016, the Issuer reported a Non-GAAP net loss for the fiscal fourth quarter of 2016 and a Non-GAAP net loss for the fiscal year of 2016. Previously, the Issuer, on its conference calls on September 10, 2015, November 13, 2015, February 12, 2016 and most recently May 12, 2016, had reiterated guidance that it expected “to have year-over-year increases of adjusted EBITDA and non-GAAP net income from results achieved in fiscal 2015.” Unfortunately for stockholders, both Adjusted EBITDA and non-GAAP net income declined in fiscal 2016 compared to fiscal 2015.

Following these disappointing results, the Reporting Persons had a call with Stephen P. Herbert, the Issuer’s Chairman and CEO, to discuss the Issuer’s financial results and communicate their views and concerns regarding a myriad of issues, including the Issuer’s strategic direction, sizable cash balances and potential means to return value to stockholders. The Reporting Persons also conveyed their belief that the Issuer should immediately evaluate all strategic alternatives to maximize value for all stockholders, including a possible sale of the Issuer.

The Reporting Persons intend to engage in discussions with the Issuer’s management, the Board, stockholders of the Issuer and other interested parties regarding the Issuer’s lack of profitability, strategic plans and other means to enhance stockholder value.

No Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) – (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein. The Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors including, without limitation, the Issuer’s financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, engaging in additional communications with management and the Board of the Issuer, engaging in discussions with stockholders of the Issuer and others about the Issuer and the Reporting Persons’ investment, making proposals to the Issuer concerning the strategic direction of the Issuer and changes to the capitalization, ownership structure, Board structure (including Board composition) or operations of the Issuer, purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares, or changing their intention with respect to any and all matters referred to in Item 4.

Usa Technologies Inc Institutional Sentiment

Latest Security and Exchange filings show 52 investors own Usa Technologies Inc. The institutional ownership in Q3 2015 is high, at 18.57% of the outstanding shares. This is decreased by 2805988 the total institutional shares. 7122836 were the shares owned by these institutional investors. In total 5 funds opened new Usa Technologies Inc stakes, 16 increased stakes. There were 7 that closed positions and 15 reduced them.

First Wilshire Securities Management Inc is an institutional investor bullish on Usa Technologies Inc, owning 90500 shares as of Q3 2015 for 0.06% of its portfolio. Perkins Capital Management Inc owns 94150 shares or 0.26% of its portfolio. WI 1492 Capital Management Llc have 0.64% of their stock portfolio for 359065 shares. Further, Paragon Capital Management Ltd reported stake worth 0.02% of its US stock portfolio. The NC Keane Capital Management Inc owns 271283 shares. Usa Technologies Inc is 0.89% of the manager’s US portfolio.

Business Profile

USA Technologies, Inc. provides technology-enabled solutions and value-added services that facilitate electronic payment transactions within the unattended point of sale (POS) market. The Company is a provider in the small ticket, beverage and food vending industry and is also engaged in offering solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk and others. It has designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services, which include the ability to remotely monitor, control and report on the results of distributed assets containing its electronic payment solutions. The Company derives its revenues from license and transaction fees resulting from connections to, as well as services provided by, its ePort Connect service.

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.

Insitutional Activity: The institutional sentiment decreased to 1.05 in 2016 Q2. Its down 0.31, from 1.36 in 2016Q1. The ratio worsened, as 21 funds sold all USA Technologies, Inc. shares owned while 22 reduced positions. 24 funds bought stakes while 21 increased positions. They now own 13.74 million shares or 18.36% more from 11.61 million shares in 2016Q1.

Driehaus Capital Management Ltd Liability Com last reported 0.03% of its portfolio in the stock. Nationwide Fund Advisors accumulated 0% or 23,026 shares. Css Ltd Liability Com Il accumulated 0% or 10,689 shares. Granite Inv Partners Ltd Liability Corporation accumulated 0.06% or 174,118 shares. Bridgeway Capital, a Texas-based fund reported 226,400 shares. Perkins Capital Management holds 238,400 shares or 1.17% of its portfolio. Monarch Prtn Asset Mgmt Limited Com last reported 0.03% of its portfolio in the stock. Equitec Proprietary Markets Limited Liability Corp holds 0% or 6,578 shares in its portfolio. Tiaa Cref Inv Management Lc holds 0% of its portfolio in USA Technologies, Inc. (NASDAQ:USAT) for 120,617 shares. Numeric Invsts Lc reported 57,900 shares or 0% of all its holdings. Schwab Charles Mngmt Incorporated holds 0% of its portfolio in USA Technologies, Inc. (NASDAQ:USAT) for 56,300 shares. Davidson Investment Advisors last reported 0% of its portfolio in the stock. Eaton Vance Mgmt owns 27,833 shares or 0% of their US portfolio. The California-based California Employees Retirement System has invested 0% in USA Technologies, Inc. (NASDAQ:USAT). Perritt Management holds 0.25% or 225,000 shares in its portfolio.

Insider Transactions: Since September 14, 2016, the stock had 1 insider buy, and 0 selling transactions for $4,910 net activity. Reilly William J. Jr. had bought 1,000 shares worth $4,910.

About 223,592 shares traded hands. USA Technologies, Inc. (NASDAQ:USAT) has risen 42.60% since March 8, 2016 and is uptrending. It has outperformed by 33.28% the S&P500.

USA Technologies, Inc. provides technology-enabled solutions and value-added services that facilitate electronic payment transactions within the unattended point of sale market. The company has a market cap of $208.20 million. The Firm is a well-known provider in the small ticket, beverage and food vending industry and is also engaged in offering solutions and services to other unattended market divisions, such as amusement, commercial laundry, kiosk and others. It currently has negative earnings. It has designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services, which include the ability to remotely monitor, control and report on the results of distributed assets containing its electronic payment solutions.

USA Technologies, Inc. (NASDAQ:USAT) Ratings Coverage

Out of 2 analysts covering USA Tech (NASDAQ:USAT), 2 rate it a “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. $4.50 is the highest target while $4 is the lowest. The $4.25 average target is -19.66% below today’s ($5.29) stock price. USA Tech has been the topic of 2 analyst reports since September 14, 2015 according to StockzIntelligence Inc. The rating was upgraded by Barrington Research on Monday, September 14 to “Outperform”. Northland Capital maintained it with “Outperform” rating and $4.50 target price in Monday, November 16 report.

More recent USA Technologies, Inc. (NASDAQ:USAT) news were published by: Businesswire.com which released: “USA Technologies Acquires VendScreen Assets” on January 25, 2016. Also Businesswire.com published the news titled: “Downey Vendors Inc. Chooses USA Technologies To Deploy ePort Connect on All …” on December 04, 2015. Businesswire.com‘s news article titled: “Coastal Canteen Vending and Food Services Inc. Expands Relationship with USA …” with publication date: August 10, 2016 was also an interesting one.

According to Zacks Investment Research, “USA Technologies is a leader in the networking of distributed assets, wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries. USA Technologies is an IBM Business Partner. The Company has marketing agreements with Cingular Wireless, Honeywell, MEI, Unilever and ZiLOG Corporation.”

USAT Company Profile

USA Technologies, Inc., incorporated on January 16, 1992, provides technology-enabled solutions and value-added services that facilitate electronic payment transactions within the unattended point of sale (POS) market. The Firm is a well-known provider in the small ticket, beverage and food vending industry and is also engaged in offering solutions and services to other unattended market divisions, such as amusement, commercial laundry, kiosk and others. It has designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services, which include the ability to remotely monitor, control and report on the results of distributed assets containing its electronic payment solutions. The Firm derives its revenues from license and transaction fees resulting from connections to, as well as services provided by, its ePort Connect service.

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