Becker Drapkin Management Cuts Stake in PowerSecure International Inc. (POWR)

Becker Drapkin Management, managed by Matthew Drapkin and Steven R. Becker, has reduced its stake in PowerSecure International Inc. (NYSE:POWR), a new amended filing with the U.S. Securities and Exchange Commission showed. Becker Drapkin Management holds 1.66 million shares of the company, equal to 7.4% of common stock outstanding, according to the filing. The position represents a decrease from 1.98 million shares the fund disclosed previously.

PowerSecure International Inc. (NYSE:POWR) is engaged in providing of utility and energy technologies to electric utilities, and their industrial, institutional and commercial customers. Last week, Becker Drapkin Management sold an aggregate of 1,500 covered call options relating to an aggregate of 150,000 shares of common stock.

In addition, the fund reported selling an aggregate of 727 covered call options relating to an aggregate of 72,700 common stock shares. The covered call options, which have an exercise price of $10 and expire in September 2014, were sold for an aggregate price of $210,420. The options may be exercised by the holders thereof prior to the expiration dates and if exercised, will be required to be settled with common stock owned by the fund, according to the filing.

PowerSecure International Inc. (NYSE: POWR) has recently said that it plans to vigorously defend against the claims made in securities class action lawsuits filed last month against the company and two of its officers. The company states that it has reviewed the complaints and views the allegations as meritless. Barry Kaplan of Wilson Sonsini Goodrich & Rosati will serve as lead defense counsel for the company and its officers, according to a statement.

For the first quarter of 2014, the company reported a 17.4% in revenues to $52.8 million, compared to around $45.0 million in the same quarter of 2013. Diluted earnings per share (EPS) reduced to a loss of $0.19 in the first quarter, compared to income of $0.04 in 1Q 2013.

PowerSecure International Inc. (NYSE: POWR) has a market cap of $217.4 million. Shares of the company traded up on Monday by 1.57% to $9.73. The consensus average target price for the stock is $16.20, while the consensus average recommendation is ‘Overweight.’

Disclosure: none