AEP Industries (AEPI): KSA Capital Management Trims Activist Stake To 17.04%

New Jersey-based AEP Industries (NASDAQ:AEPI) engaged in manufacturing of plastic packaging films. The company makes more than 15,000 types of multi-purpose and flexible packaging films for the consumer, industrial, and agricultural markets. It has a market cap of more than $288 million, and institutional investors own 70% of outstanding shares of the company. For fiscal 2014, AEP Industries (NASDAQ:AEPI) posted a net loss of $5.5 million, or $1.03 per share, compared to net income of $10.7 million, or $1.92 per share in fiscal 2013. According to the company, its fiscal 2013 results included a gain on purchase of the Transco business of $1 million. AEP Industries (NASDAQ:AEPI) reported that its net sales in 2014 amounted to $1.2 billion, up from $1.1 billion in 2013. The gain was the result of a 6% increase in average selling prices partially offset by a 1% decrease in sales volume compared to the prior year. For fiscal 2014, the company booked gross profit of $121.9 million, representing a $32.6 million decrease from 2013.

“We are optimistic that our cash flows in fiscal 2015 will improve as cost cutting initiatives are realized, major capital expenditure projects decline, and we believe margins will improve as the resin markets stabilize and volume grows,” AEP Industries (NASDAQ:AEPI) Chairman, President and Chief Executive Officer (CEO) Brendan Barba said in a statement.

On Thursday, AEP Industries (NASDAQ:AEPI) traded down by 0.89% to $54.81. The stock has a 52-week high of $58.88, and a 52-week low of $29.67. The stock has moved up by more than 32% in last six months. However, the company’s share price dropped by 6% in last month.

Other largest shareholders of AEP Industries (NASDAQ:AEPI) include Renaissance Technologies, led by Jim Simons, which owns 311,646 shares of the company, as of the end of the third quarter of 2014. First Eagle Investment Management, managed by Jean-Marie Eveillard, also sees value in the company, in which the fund revealed ownership of 281,314 shares at the end of September 2014. AEP Industries (NASDAQ:AEPI) is also a favorite stock of Nokomis Capital, run by Brett Hendrickson, which reported ownership of 149,448 shares of the company, as of the end of the third quarter.

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