In a new filing with the U.S. Securities and Exchange Commission, Okumus Fund Management, run by Ahmet Okumus, has disclosed initiating a new position in Web.com Group Inc. (NASDAQ:WWWW). According to the filing, Okumus Fund holds around 5 million shares of the company’s common stock. The stake represents 9.6% of class, and is passive by nature.
Web.com Group Inc. (NASDAQ:WWWW) is a provider of Internet services and online marketing solutions for small businesses. Its market cap is $1.04 billion. Analysts have the consensus average target price of $27.92 for the company’s stock, while the consensus average recommendation is ‘Overweight.’
At the end of last month, Web.com Group Inc. (NASDAQ:WWWW) reported the acquisition of Scoot, a local online directory company in the United Kingdom. Financial details of the deal were not disclosed. The Scoot network operates the largest online only business directory network in the UK with more than 400 websites.
For the second quarter of 2014, Web.com Group Inc. (NASDAQ:WWWW) reported non-GAAP net income of $33.6 million, or $0.62 per diluted share, compared to non-GAAP net income of $26.4 million, or $0.51 per diluted share, in the same quarter a year ago. The company posted total revenue of $138.2 million, up from $120.4 million in the second quarter of 2013, according to a press release.
Aside from Okumus Fund Management, Craig C. Albert’s Sheffield Asset Management holds 1.13 million shares of Web.com Group Inc. (NASDAQ:WWWW), while Renaissance Technologies, managed by Jim Simons, revealed ownership of 760,732 shares of the company, both as at the end of the first quarter.
New York-based Okumus Fund is a staunch value investor and primarily focuses on opportunities in the mid and large-cap equity space. It is estimated that the fund maintains a portfolio 90% of which consist of long positions and 15% are short positions. In its latest 13F filing, Okumus Fund revealed only four equity positions. In terms of value, AVG Technologies NV (NYSE:AVG) was represented as the largest holding, in which the fund disclosed ownership of 7.15 million shares.