Long Term Returns of Nelson Peltz’s 5 Activist Targets

In this article, we discuss long-term returns of Nelson Peltz’s 5 activist targets. If you want to see more stocks in this selection, check out Long Term Returns of Nelson Peltz’s Activist Targets.

5. Ingersoll Rand Inc. (NYSE:IR) 

Activist Investment: 2012
Long Term Returns Since Peltz’s Investment: 78.13%
S&P 500 Gain Since Peltz’s Investment: 60.75%

Ingersoll Rand Inc. (NYSE:IR) is a company that provides mission-critical air fluid energy and medical technologies. Peltz took a 7.05% stake in the manufacturing conglomerate in 2012 worth $900 million.

The investment ranked Peltz as one of the largest shareholders, coming at a time when the company’s share price had tanked by nearly 50% from 2007 highs. The activist investor argued that the company was highly undervalued. He started pushing for strategic changes, including a bid to split Ingersoll Rand Inc. (NYSE:IR) into two or more separate publicly traded companies.

In August 2012, the activist investor joined the company’s board, which averted a potential proxy fight. By year-end, the company had agreed to spin off its security business, which included brands Schlage and Kryptonite, into a new company called Allegion. Peltz approved the spinoff, insisting it would create significant shareholder value. The spinoff was completed in 2013, and Peltz left the board in 2016, satisfied with the progress.