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Eric Singer buys Barnes & Noble Education shares worth over $600k

Published 07/10/2024, 08:05 PM

Eric Singer, a notable director and significant shareholder of Barnes & Noble Education, Inc. (NYSE:BNED), has recently made substantial purchases of the company's stock. Over a span of three days, Singer acquired a total of 87,000 shares, amounting to over $600,000 in value.

On July 8, Singer started his buying spree by purchasing 47,000 shares at prices ranging from $6.55 to $7.02, averaging $6.7367 per share. The following day, he continued to increase his stake by adding another 10,000 shares to his portfolio, with the purchase prices falling between $7.27 and $7.30, averaging $7.285 per share. He concluded his purchases on July 10, acquiring 30,000 shares with prices between $7.19 and $7.28, with a weighted average of $7.2367 per share.

These transactions have significantly increased Singer's direct ownership in Barnes & Noble Education, reflecting a strong vote of confidence in the company's prospects. Following these purchases, Singer's direct holdings in the company have risen to 94,441 shares.

Investors closely monitor insider transactions like these, as they often provide insights into the executive's perspective on the company's current valuation and future potential. Eric Singer's recent investments in BNED have been noteworthy, not only for their size but also for the strong signal they send about his bullish stance on the company's future.

It's worth noting that Singer is associated with a group that collectively holds a substantial ownership position in BNED, further emphasizing the significance of his recent buying activity. This group includes entities such as Toro 18 Holdings LLC and Immersion (NASDAQ:IMMR) Corporation, among others, which together own a substantial portion of the company's outstanding common stock.

Barnes & Noble Education, with its focus on retail and educational services, continues to draw attention from investors and industry observers alike. The recent buying activity by one of its key insiders will undoubtedly remain a topic of interest as market participants evaluate the company's trajectory in the competitive education sector.

In other recent news, Barnes & Noble Education (BNED) has seen significant changes in its leadership and financial structure. The company has announced the appointment of Jonathan Shar as the new CEO, succeeding Michael P. Huseby. Shar brings a wealth of experience to the role, having held various leadership positions within the company and the broader book retailing industry.

BNED has also secured $95 million in equity capital in a deal led by Immersion Corporation. This includes a $50 million equity investment and a $45 million equity rights offering, expected to close in June 2024. The transactions are set to provide BNED with approximately $75 million in net cash proceeds after transaction costs.

Additionally, BNED plans to refinance its asset-backed loan facility, availing a $325 million facility maturing in 2028. This move, coupled with the recent equity capital infusion, is part of BNED's strategy to strengthen its financial stability.

Following these developments, Needham maintained a hold rating on BNED's stock after the release of mixed preliminary financial results for fiscal year 2024, where BNED's revenue fell short of expectations, but its adjusted EBITDA surpassed forecasts. Lastly, BNED has adopted a stockholder rights plan, designed to be activated if an individual or group acquires 10% or more of the company's common stock.

InvestingPro Insights

Amidst the notable insider buying activity by Eric Singer at Barnes & Noble Education, Inc. (NYSE:BNED), there are several financial metrics and market indicators that investors may find valuable. According to InvestingPro data, BNED has a market capitalization of approximately $186 million, underscoring its position in the market. Despite recording a slight revenue growth of 1.55% over the last twelve months as of Q4 2024, the company's stock price has experienced significant volatility, with a one-month total price return of -24.5% and a staggering six-month total price return of -93.22%.

InvestingPro Tips highlight that BNED operates with a significant debt burden and analysts do not anticipate the company will be profitable this year. Additionally, the stock's price volatility is evident, with the Relative Strength Index (RSI) suggesting that the stock is currently in oversold territory. These insights may provide a deeper understanding of the company's financial health and market perception, particularly in light of Singer's recent investment decisions.

For those seeking further analysis and tips on BNED, there are an additional 16 InvestingPro Tips available at Investing.com/pro/BNED. Interested readers can utilize the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive view of the company's financial landscape and investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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