Activist Push Has Telenav Popping As Fund Seeks Board Seats

The stock has been in a downtrend since its late May high of $9.83, but has managed to stage a fragile rally lately, with shares ending yesterday’s trading session at $7.24 per share, having advanced for nine straight days before today’s gains. For the three months ending June 30, 2015, Telenav posted revenues of $43.2 million, up by 25.6% year-over-year, while the loss per share has narrowed to $0.19 per share from $0.39 per share a year ago. Wall Street estimates suggest the company is not going to stop at that, as analysts have projected revenues of $44.8 million and a loss of $0.18 per share for the current quarter. Analysts from B. Riley and Craig-Hallum recommend the stock as a ‘Buy’, while the average price target is $12.33, representing a 71% premium over the current price.

Telenav Inc (NASDAQ:TNAV)’s popularity among the hedge funds that we track increased during the second quarter, as the total number of funds holding long positions rose to 20 from 18, while the overall value of their investments in the company went up by 3.11% to $67.2 million. John W. Rogers is among the hedge fund managers that decided to reduce their exposure to Telenav, trimming his stake by 1% to 1.6 million shares, as reported in Ariel Investments’ latest 13F filing.

Disclosure: None