Steadfast Capital Acquires New Stake in Leading Online Food Delivery Company
In a separate 13G filing, Steadfast Capital Management LP, overseen by Robert S. Pitts Jr., reported a new stake of 4.31 million shares in GrubHub Inc. (NYSE:GRUB), which accounts for 5.1% of the company’s outstanding shares. GrubHub is the leading online and mobile food delivery company, whose two restaurant-ordering platforms, GrubHub and Seamless, account for approximately 32% of all online food orders. Nonetheless, the competition in the online food delivery space has been intensifying in recent years. DoorDash, a three-year-old food delivery service, recently raised $127 million in venture capital (VC) from some of Silicon Valley’s largest VC firms such as Sequoia Capital, Khosla Ventures, and others. DoorDash has spread its operations out across 22 markets from a mere three markets less than a year ago. Similarly, Uber, the so-called killer of the taxi industry, recently launched a food delivery app called UberEats.
Meanwhile, GrubHub Inc. (NYSE:GRUB)’s 2015 revenue was $361.83 million, up from $253.87 million in 2014 and $137.14 million in 2013. The company generally receives a commission from restaurants, which represents a share of the value of the orders processed through its platform. GrubHub shares have gained 10% since the beginning of 2016, but are down by 31% in the past 52 weeks. Ross Turner’s Pelham Capital acquired a 4.40 million-share stake in GrubHub Inc. (NYSE:GRUB) during the December quarter.
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Adage Capital Partners Discloses 4.8% Stake in Independence Contract Drilling
As revealed by a 13G filing, Adage Capital Partners L.P., founded by Phillip Gross and Robert Atchinson, currently owns 1.82 million shares of Independence Contract Drilling Inc. (NYSE:ICD), which make up 4.84% of the company’s outstanding common stock. The current position is more than double the stake of 848,201 shares reported in Adage Capital’s 13F filing for the fourth quarter of 2015. Independence Contract Drilling provides land-based contract drilling services for oil and natural gas producers targeting unconventional resource plays across the United States. Precisely, the company constructs and operates a premium land rig fleet that comprises 14 technologically-advanced, custom-designed ShaleDriller rigs.
The depressed crude oil prices throughout the entirety of 2015 and early 2016 have put pressure on ICD’s pricing, utilization and contract tenors for its ShaleDriller rig. Independence Contract Drilling Inc. (NYSE:ICD)’s drilling fleet had a utilization rate of 86% during the first quarter of 2016, but the rate is anticipated to decline should crude oil prices fail to continue their recovery. At the end of April, the company raised approximately $43.0 million through an underwritten public offering of 13.23 million shares of common stock, which were sold to the public at a price of $3.50 per share. ICD plans to use the capital to pay down a portion of the outstanding borrowings under its revolving credit facility, as well as to cover general corporate expenses. Jim Simons’ Renaissance Technologies owned 73,900 shares of Independence Contract Drilling Inc. (NYSE:ICD) on December 31.
