After raising its stake earlier this month, Himanshu H. Shah‘s Shah Capital Management has further upped its activist holding in Corinthian Colleges Inc (NASDAQ:COCO). According to its latest filing, Shah Capital currently owns 5.86 million shares of Corinthian, versus 4.97 million reported previously. The new stake amasses 6.65% of the company’s stock, up from 5.64% held earlier.
Moreover, in its previous filing involving Corinthian Colleges Inc (NASDAQ:COCO), Shah Capital disclosed two letters sent to the company‘s board in October 2013, and March, 2014. In the first letter, the investor stated that it is concerned with the low stock price of the company, and suggested that the management should undertake significant measures to improve the situation. In the second letter, the fund explained that it has raised its position in the company because it considers that Corinthian Colleges is providing a high quality education to its students. At the same time, Shah urged the company to buy back shares since they continue to trade at a big discount.
The stock of Corinthian Colleges Inc (NASDAQ:COCO) has declined by around 21% since the beginning of the year, and has an average recommendation “Underweight” with the target price set at $1.52. The company posted a net income of $0.24 for the previous fiscal year, down from $0.32 in 2012, but above the consensus estimate. For the second quarter of its fiscal 2014, the company’s EPS amounted to $0.05, almost double in comparison with the estimates, and significantly higher than the first quarter loss of $0.09.
While Shah Capital is one of the most significant shareholders, other hedge funds out of those we track also hold stakes in Corinthian Colleges Inc (NASDAQ:COCO). Lisa Rapuano‘s Lane Five Capital owns 1.84 million shares, followed by Robert Pitts‘ Steadfast Capital Management with 1.31 million shares.
Earlier this month, Shah Capital also disclosed raising its stake in UTStarcom Holdings Corp (NASDAQ:UTSI) to 25.99% of the common stock, the position containing 9.85 million shares, versus 7.85 million held previously.