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HD Supply Holdings Inc (HDS): JANA Partners Cuts Position By 40%

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Barry Rosenstein‘s JANA Partners is reducing its exposure to HD Supply Holdings Inc (NASDAQ:HDS), having recently dumped roughly 40% of its stake in the company. According to an amended filing with the Securities and Exchange Commission, the fund currently holds 9.86 million shares, including options to acquire 2 million shares, which account for approximately 4.9% of the company’s outstanding stock.

With an $8.3 billion market cap, HD Supply Holdings Inc (NASDAQ:HDS) is a major distributor of construction and maintenance products in North America. The company was a distribution business run by Home Depot Inc (NYSE:HD) until 2007, when it was sold to private investors. The stock ended 2016 on a high, having advanced by 44% during the year, and is currently trading at a trailing Price to Earnings (P/E) ratio of 8.3, significantly lower than the industry average of 20, according to data compiled by Yahoo! Finance. Jack Hough of Barron’s believes the stock is poised to continue its advance, spurred by Donald Trump’s plans to invest heavily in infrastructure and to cut taxes. Another reason why the stock is attractive is that the company’s earnings have been growing faster than its stock price.

Barry Rosenstein JANA PARTNERS

Hedge fund interest in HD Supply Holdings Inc (NASDAQ:HDS) cooled down a bit over the course of the third quarter of 2016, with the number of long positions at the end of September having dropped to 40, down from 47 registered a quarter before. Still, those funds together held roughly 23% of the company’s outstanding stock. John Griffin‘s Blue Ridge Capital was the largest holder of this stock among the funds followed by Insider Monkey, having reported ownership of 8.57 million shares in its latest 13F filing. Farallon Capital was also bullish on this stock, having boosted its holding by 48% to 5.79 million shares during the third quarter.

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You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
JANA PARTNERS 9,862,529 0 9,862,529 0 9,862,529 4.9%
Barry Rosenstein
Barry Rosenstein
JANA Partners

Page 1 of 5 – SEC Filing

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
SCHEDULE 13D/A
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
Under the Securities Exchange Act of 1934
(Amendment No. 1)

HD Supply
Holdings, Inc.

(Name of Issuer)

Common Stock,
par value $0.01 per share

(Title of Class of Securities)

40416M105

(CUSIP Number)

Marc Weingarten, Esq.

Eleazer Klein, Esq.

Schulte Roth & Zabel LLP

919 Third Avenue
New York, New York 10022

(212) 756-2000

(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

January 10,
2017

(Date of Event which Requires
Filing of this Schedule)

If the filing person has previously filed a statement on Schedule
13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f)
or 13d-1(g), check the following box. [ ]

NOTE: Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

(Continued on following pages)

(Page 1 of 5 Pages)

————————–

The information required on the remainder of this cover page shall
not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or
otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however,
see the Notes).

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