Sandell Asset Management Increases Holding of Bob Evans Farms Inc (BOBE) Shares

As stated in a recent filing with the Securities and Exchange Commission, Tom Sandell has increased his fund’s stake in Bob Evans Farms Inc (NASDAQ:BOBE) to a little over 2 million shares from 1.15 million held previously. Sandell Asset Management‘s new position accounts for approximately 8.1% of the company’s common stock. Given the share price of $48.38, the stake has a value north of $97 million.

Tom Sandell had previously filed a complaint against Bob Evans Farms Inc (NASDAQ:BOBE), as the company’s board intended to deprive its shareholders of their right to amend the company’s bylaws. Sandell had later dropped the lawsuit as the board of Bob Evans Farms agreed to lower its shareholder voting threshold from 80% to 50% and to several other changes..

Chuck Royce of Royce & Associates is also an admirer of Bob Evans Farms Inc (NASDAQ:BOBE). His fund currently holds 442,673 shares reportedly worth $22.4 million. John W. Rogers is also keeping an eye on this stock, with his fund, Ariel Investments, holding 233,523 shares valued at $11.8 million according to its latest 13F filing.

Bob Evans Farms Inc (NASDAQ:BOBE) engages in the management of restaurants in the United States. The stock has been in an uptrend since 2008 and has reached an all-time high of $60.22 in September 2013, after which it has entered into a correction. The company has a market cap of $1.31 billion and pays an annual dividend of $1.21, which represents a yield of 2.5%.

For the second quarter of fiscal 2014, Bob Evans Farms posted revenues of $333 million and earnings per share (EPS) of $0.35, missing the expected $339 million in revenues and EPS of $0.54. For the current quarter, analysts expect the company to register revenues of $350 million and earnings of $0.53 per share.

Sandell is also a big fan of Equinix Inc (NASDAQ:EQIX). During the fourth quarter of 2013, Sandell Asset Management more than doubled its holding of the stock, taking it to 182,700 shares worth approximately $32.4 million. Sandell Asset has also added to its stake in Compuware Corporation (NASDAQ:CPWR). It now holds 4.8 million shares worth $54 million according to the fund’s latest 13F report.

Disclosure: none.

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