Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Zac Hirzel, Hirzel Capital Management Go Activist on Aeropostale

Zac Hirzel‘s Hirzel Capital Management, has slightly increased its exposure at Aeropostale Inc (NYSE:ARO). The fund currently holds around 4.7 million shares of the company, versus 4.5 reported at the end of last week. At the same time, the percentage of the outstanding common stock held by Hirzel edged up to 6.0%, from 5.7%. Another thing that we should mention is that Hirzel has changed the nature of his position from passive to active, which could mean that the fund is planning to get involved in the company’s activity.

Aeropostale, Inc. (NYSE:ARO)

Hirzel’s activist intentions are actually revealed in the filing as well. The fund states that it plans to enter into some discussions with Aeropostale’s management. The shares have been bought under the consideration that they are undervalued. Hirzel however does not reveal his plans regarding the company yet, so we should keep our eyes on the story as it is developing.

The stock of apparel retailer Aeropostale has been declining and is down by over 20% since the beginning of the year. The company has not yet provided its financial results for the third quarter, however, in the second quarter, its net sales fell by 6% on the year to $454 million. Aeropostale posted a net loss of $33.7 million in the second quarter, and the forecast for the third quarter does not look very optimistic as well. The company expects a net loss between $0.21 and $0.26 per diluted share, which is a huge slump from a profit of $0.31 per share in the same period of last year.

Among other hedge funds that we track, several disclosed holding shares of Aeropostale. Matt Sirovich and Jeremy Mindich’s Scopia Capital held over 4.9 million shares, according to our database, followed by Patrick Mccormack’s Tiger Consumer Management, and Eminence Capital, managed by Ricky Sandler with 3.6 million shares, and 3.0 million shares respectively.

Disclosure: none

Recommended Reading:

Privet Fund Reports Upping Position in StarTek

Jeffrey Jacobs Change His Mind Regarding MTR Gaming Group – Eldorado Resorts Merger

Hedge Fund News: Bill Ackman, David Shaw & Steve Cohen’s Trial




Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!