Red Mountain Capital Boost Activist Stake in Destination XL Group Inc (DXLG) to 11.7%

Willem Mesdag‘s Red Mountain Capital has boosted its activist position in Destination XL Group Inc (NASDAQ:DXLG), a newly amended filing with the U.S. Securities and Exchange Commission showed. Red Mountain reported holding almost 5.30 million shares of Destination XL, versus 4.84 million held previously. The new stake amasses 11.7% of the company’s stock, up from 9.5% reported earlier.

Destination XL Group

Moreover, earlier in February, in another filing, Red Mountain revealed that its manager, Willem Mesdag, has been added to the board of directors of the Destination XL Group Inc (NASDAQ:DXLG). The fund has been bullish on the stock recently, in its 13F filing revealing ownership of 4.84 million shares, up by 15% over the quarter.

The major multi-channel specialty retailer of big & tall men’s apparel and accessories, Destination XL Group Inc (NASDAQ:DXLG), reported sales of $388 million for its fiscal 2013, versus $399.6 million posted a year ago. At the same time, the company posted a loss of $1.23 per diluted shares, significantly down from an income of $0.13 in fiscal 2012. The company, however, expects an improvement during this year, forecasting sales in the range of $405.0 to $410.0 million, according to a statement. The net loss is also expected to narrow and be between $0.12 to $0.16 per diluted share.

On the back of weak financial results, the stock of Destination XL Group Inc (NASDAQ:DXLG) has been declining and lost over 14% since the beginning of the year. However, the average recommendation for the stock is “Overweight” and the mean target price stands at $8.00 per share.

Investors, on the other hand, seem to be keen on Destination XL Group Inc (NASDAQ:DXLG), with many of the major shareholders raising their positions in the latest round of 13F filings. Glenhill Advisors, led by Glenn J. Krevlin, raised its stake by 7% over the quarter to 4.47 million shares. Phil Frohlich‘s Prescott Group Capital Management initiated a stake in the company, which amasses 711,400 shares, and Cannell Capital, managed by J. Carlo Cannellsurged its position by around 670% to 548,900 shares.

The largest part of Red Mountain’s $334.2 million equity portfolio is invested in the Services sector. The two largest holdings in Air Transport Services Group Inc. (NASDAQ:ATSG) and Encore Capital Group, Inc. (NASDAQ:ECPG) represent together over 40% of the equity portfolio, the fund holding 11.15 million shares worth $90.22 million in Air Transport Services and 1.33 million shares, worth $66.95 million in Encore Capital.

Disclosure: none

Recommended Reading:

Mario Gabelli Reveales Latest Moves In Its Equity Portfolio

Daniel Gold, QVT Financial Increase Stake In CytRx Corporation (CYTR) & Further Reduce Exposure To Pacific Alliance China Land Limited (PACL)

Carl Icahn To Get Three More Board Seats at Herbalife Ltd. (HLF)

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!