Valueact Surges Stake in Dresser-Rand Group Inc. (DRC)

Jeffrey Ubben is bullish on Dresser-Rand Group Inc. (NYSE:DRC). In a recent filing with the Securities and Exchange Commission, his fund, Valueact Capital, has reported a massive increase in their stake: to around 5 million shares from 658,200 shares. The new position accounts for 6.6% of the company’s shares outstanding.

VALUEACT CAPITAL

David Cohen and Harold Levy, the managers of Iridian Asset Management, are also betting on Dresser-Rand Group Inc. (NYSE:DRC), having recently upped their stake from 4.6 million to 5.6 million shares. Phill Gross and Robert Atchinson are also very bullish on this stock and upped the stake by over 200% during the last quarter of 2013. Adage Capital Management now holds 1.5 million shares reportedly worth $90.5 million. Jason Capello‘s Merchants’ Gate Capital has also increased its investment in Dresser-Rand to 925,000 shares valued at $55.1 million.

Dresser-Rand Group Inc. (NYSE:DRC) is a producer of engineered rotating equipment for a variety of industries worldwide. The company has a market cap of $4.1 billion and does not pay a dividend. Following the 2008 credit crunch, the stock had been in an uptrend until the middle of 2013 when it reached an all-time high of $67.38. The price has been falling ever since and is currently approximately $54.50 per share. The stock is traded at a trailing Price to Earnings (P/E) ratio of 19.3, which is inline with the industry average of 18.8.

The company is set to announce 2013 fourth quarter financial results on March 12. Analysts expect revenues of $1.1 billion and earnings per share (EPS) of $1.31. Dresser-Rand Group Inc. (NYSE:DRC) was recently downgraded by Morgan Stanley to “equal-weight” and with a price target of $57. Raymond James has also downgraded this stock, citing lower than expected 2014 guidance.

Disclosure: none.

Recommended reading:

Mason Capital Management Initiates 6% Stake in Men’s Wearhouse (MW)

Hedge Fund News: Edward Lampert, Bill Ackman & David Harding

Derek C. Schrier and Indaba Capital Management’s Top Stock Picks

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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

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

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!