Elliott Management Reports New 6.2% Stake in Juniper Networks, Inc. (JNPR); Proposes Measures to Increase Stock Price to $35/Share

Paul Singer‘s fund Elliott Management has revealed a new stake in Juniper Networks, Inc. (NYSE:JNPR), which amasses 6.2% of the company’s common stock. The position is activist by nature and contains around 31.42 million shares, including options. At the same time, Eliott disclosed a presentation stating its ideas regarding the company’s present the situation and ways that might increase the shareholder value of the company.

Paul Singer ELLIOTT MANAGEMENT

The stock of communications and networking company Juniper Networks, Inc. (NYSE:JNPR) gained around 9% in the morning trading amid Eliott’s disclosure of ownership of Juniper Networks shares. The fund considers that the measures it proposes can increase the stock price by 57-77% to $35-45 per share.

Paul Singer’s fund states that Juniper Networks, Inc. (NYSE:JNPR)’s stock had significantly underperformed in the past, in comparison with the broader indices as well as in comparison with its peers.  The underperformance was mainly caused by Juniper’s outsized cost structure, inefficient capital structure, as well as poor Mergers & Acquisitions track record.

From Elliott’s point of view, Juniper Networks, Inc. (NYSE:JNPR) should adapt several low-risk initiatives that might increase the company’s value for its shareholders. One of the measures is a stock repurchase program worth $3.5 billion, out of which $2.5 billion worth of stock should be bought back immediately and the rest repurchased in the following year.

The company should realign its costs via a $200 million run-rate reduction in operating expenses. In this way, the cost structure of Juniper will be closer to its peers.

The new shareholder of Juniper Networks, Inc. (NYSE:JNPR) also says that their ideas are supported by the analysts who during the past year have been suggested that the company requires significant changes and measures some of which being in line with the ideas suggested by Elliott.

The full presentation is available below:

Elliott Associates Presentation Regarding Juniper Networks

Diamond Hill Capital, led by Ric Dillon, also holds shares of Juniper Networks, its stake amassing 5.25 million shares. Daniel Benton‘s Andor Capital Management reported in its latest 13F ownership of 1.75 million shares, the stake surging by 116% over the quarter.

The move made by Elliott comes only a couple of days after the fund revealed its plans to acquire another communications and networking company, Riverbed Technology, Inc. (NASDAQ:RVBD).

Disclosure: none

Recommended Reading:

Prem Watsa, Fairfax Acquire Some Shares of BlackBerry Ltd (BBRY) for Investment Purposes

Visium Asset Management Ups Stake in Skyrocketing Intercept Pharmaceuticals Inc (ICPT)

Ariel Investments Boosts its Exposure to Rosetta Stone Inc (RST), Spartan Motors Inc (SPAR) and Sigma Designs Inc (SIGM)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!