Relational Investors Boost Stake In Manitowoc Company, Inc. (MTW); Push For Food Division Spin Off

Ralph V. Whitworth, who runs Relational Investors, is bullish on Manitowoc Company, Inc. (NYSE:MTW) and has nearly doubled his fund’s position in the company. According to a recent filing with the Securities and Exchange Commission, Relational Investors has increased its holding of the stock by approximately 4.97 million shares, which were bought at an average price of $20.69 apiece. As a result, the fund now holds 11.5 million shares which represent 8.52% of the total number of shares outstanding.

Ralph V. Whitworth

Following the announcement, Manitowoc Company, Inc. (NYSE:MTW) shares rose as much as 12% to a price of $33.19, as reported by Marketwatch. The company has a market cap of $4.36 billion and engages in the manufacturing and sale of cranes and foodservice equipment worldwide. The stock is traded at a trailing Price to Earnings (P/E) ratio of 35.58, which is significantly higher than the industry average of 17.40, and carries an annual dividend of $0.08, which represents a yield of 0.30%. The forward P/E ratio of 15.77 is an indication of market’s belief that the company can improve its earnings potential. Manitowoc Company, Inc. (NYSE:MTW) posted revenues of $850 million and earnings of $0.15 per share for the first quarter of 2014.

Ralph V. Whitworth is also a fan of Clean Harbors Inc (NYSE:CLH), having opened a position which amasses 5.51 million shares or 9.08% of the company’s common stock. His biggest bet continues to be Hewlett-Packard Company (NYSE:HPQ), with Relational Investors holding approximately 27.8 million shares according to its latest 13F report.

According to a report from CNBC‘s Bertha Coombs, Relational Investors believe Manitowoc Company, Inc. (NYSE:MTW) to be undervalued and that Relational urges the company to spin off its food unit. They believe such a move would mean a higher value for the crane company. Relational Investors have also revealed they have presented this idea to the management of the company back in January 2014, but have not heard back from them and their request for a meeting with the board of directors was rejected.

Watch the full video below:

Disclosure: none.

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

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 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

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones 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!