Glenhill Advisors‘s collection of funds purchased 175,000 Lionbridge Technologies, Inc. (NASDAQ:LIOX) shares earlier this week, according to a filing that classifies the firm as a large shareholder. The institution owns about 13.8% of the company, holding 8,781,810 shares, currently worth roughly $31,965,788 (as of Oct 2nd, 5:06PM EDT). The purchase was divided in two: 90,000 shares were bought at $3.74 and an extra 85,000 were acquired at $3.735.
The fund is a large shareholder in several small firms, and Lionbridge is the largest in terms of market capitalization. Actually, Glenhill has been placing all of its bets (and money) on this company since May 2013. In less than five months, it has added more than 1 million shares to its portfolio. Currently, all the stocks purchased are worth more than they were at the time of the acquisition. However, this last addition looks like an exception at the time. The stock has descended by about 2.67%, from the $3.74 per share paid on Monday.
The purchase seems to be timed quite randomly, after no particular piece of important news. Instead, it looks more like a part of a trend that started in May. However, Glenhill is not the only one bullish on Lionbridge. Zacks has been recommending the stock for a while now, ranking it as a buy for the short term and expecting it to outperform the industry over the longer term. In fact, analyst consensus also points towards an outperformance over the next five years. They expect the company to deliver annual average growth rates around 20% over the next five years, overtaking its peers by a 10% in average.
Although Glenhill is the largest hedge fund bull, by a huge margin, other renowned investing firms like Jim Simons’ Renaissance Techonlogies and Joel Grenblatt’s Gotham Asset Management, are also large shareholders.
Disclosure: Javier Hasse holds no position in any stocks mentioned