Luxor Capital Group Raises Stake and Goes Activist on BJ’s Restaurants, Inc. (BJRI)

Only over a month after initiating a stake, Christian Leone and his fund, Luxor Capital Group, have raised their stake in BJ’s Restaurants, Inc. (NASDAQ:BJRI) to 2.75 million shares, from 1.78 million disclosed previously. At the same time, now holding almost 10% of the common stock, Luxor changed the nature of its stake to activist.

Christian Leone

Moreover, Luxor entered into an agreement with Patrick Walsch’s PW Partners Atlas Funds and Jeffrey C. Neal of Horizon Capital, under the terms of which, the parties formed a group and together plan to seek representation on BJ’s Restaurants, Inc. (NASDAQ:BJRI)’ Board of Directors. Altogether the group holds over 3.5 million shares, equal to 12.4% of the outstanding stock.

As a first step, PW Partners Atlas Fund II has nominated Jason G. Bernzweig, Mark A. McEachen, Jeffrey C. Neal, Emanuel R. Pearlman and Patrick Walsh to be elected to the Board of Directors of BJ’s at the next annual meeting of stockholders.

Following the recent increase, Luxor is one of the most significant shareholders of BJ’s Restaurants, Inc. (NASDAQ:BJRI). Another bullish hedge fund is Ken Griffin’s Citadel Advisors, which a couple of weeks ago also inched up its position to almost 1.21 million shares, from below 2.0 million held previously.

BJ’s Restaurants, Inc. (NASDAQ:BJRI) currently trades 32 times its estimated earnings for the next 12 months. The last year hasn’t been a particularly successful for the company as it has posted EPS of $0.75, down from $1.23 reported a year ago. The company has missed the estimates for the last three quarters, and, in the October-December period alone showed a 90% drop in net income.

Amid these developments, the analysts currently appreciate the stock as a ‘Hold’, while Piper Jaffray recently downgraded the stock to ‘Neutral’ and reduced the target price to $27. In addition, several other analysts also lowered their target prices and downgraded the stock of BJ’s amid weak financial results. The stock has been down by 11% since the beginning of the year.

The Services sector amasses a significant part of Luxor’s equity portfolio, although BJ’s Restaurants, Inc. (NASDAQ:BJRI) is the only Restaurant operator held currently by the fund in its 13F portfolio.

Disclosure: none

Recommended Reading:

George Soros and Jeff Altman Are Both Betting On These Six Stocks

Warren Buffett and Lou Simpson Are Bullish On These Stocks

Hound Partners & Marble Arch Investments Are Betting On Same Stocks

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

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

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!