According to a freshly-amended 13G filing, Glenn J. Krevlin’s Glenhill Advisors owns a 2.38 million-share position in Joint Corp (NASDAQ:JYNT), up by 1.12 million shares since the end of the third quarter. The enlarged stake represents 19.5% of Joint’s outstanding shares. The company owns, operates and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sales of regional developer rights. Thus, its growth strategy involves acquiring and developing clinics that will be directly owned by the company, but also selling additional franchises. Just recently, the company offered 2.27 million shares to the public through an underwritten public offering at a price of $5.50 per share. Joint Corp (NASDAQ:JYNT) anticipates that it will repurchase or develop up to 42 franchises or clinics in 2015, so it appears that the company raised additional capital so as to implement its growth plans. Meanwhile, shares of Joint are 10% in the red year-to-date even though the stock had gained as much as 95% for the year through mid-June.
Only two hedge funds monitored by our team owned stakes in the company at the end of the third quarter, accumulating 14.80% of its common stock. Charles Paquelet’s Skylands Capital owns 195,281 shares of Joint Corp (NASDAQ:JYNT) as of the end of September.
Follow Glenn J. Krevlin's Glenhill Advisors
As stated by several Form 4 filings submitted with the SEC, Paul Singer’s Elliott Management purchased 51,000 shares of Citrix Systems Inc. (NASDAQ:CTXS) on Friday and 17,000 shares on Monday, at prices between $74.60 and $75.77 per share, boosting its overall holding to 2.24 million shares. At the beginning of the year, the cloud computing software maker announced a restructuring program aimed at increasing its strategic focus and operational efficiency, which resulted in a workforce reduction of 700 full-time positions in the first half of the year. On July 29, Citrix Systems Inc. (NASDAQ:CTXS) also announced its intentions to its review strategic alternatives in connection to its ByteMobile business and its GoTo family of products, after receiving pressure from Singer. Just recently, the company announced the spin-off of its GoTo family of products and a workforce reduction of 1,000 jobs, so it appears that the activist investor’s pressure has started to bear fruit. In the meantime, the stock has advanced by 19% since the beginning of the year and is trading at a rather rich trailing P/E ratio of 43.93. However, this ratio ignores the earnings potential of the company and the potential impact of the increasing strategic focus and operational efficiency.
The number of hedge funds invested in Citrix decreased to 38 from 39 during the third quarter, while the value of their stakes grew to $1.44 billion from $1.03 billion quarter-over-quarter. These smart money investors owned nearly 13% of the company’s shares on September 30. Peter Adam Hochfelder’s Brahman Capital acquired a 1.76 million-share stake in Citrix Systems Inc. (NASDAQ:CTXS) during the September quarter.
Follow Paul Singer's Elliott Management
Disclosure: None
