Crown Castle gives in to Elliott's pressure: Insider trades & hedge funds weekly
Here is your Pro Recap of the biggest insider trades and institutional investor headlines you may have missed this week: Crown Castle announces a review of its fiber business and the replacement of two board members as it gives in to Elliott's demands, and top brass buys at Complete Solaria, GlobalStar, and Beyond Air.
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Crown Castle agrees to Elliott's terms, revamps Board and Fiber unit
On Wednesday, Crown Castle International (NYSE:CCI) announced a comprehensive review of its fiber business and the replacement of two board members. This move is in alignment with an agreement reached with Elliott, an activist investor group that has been pushing for changes at the wireless tower company due to prolonged underperformance.
As part of this arrangement, the company is establishing two new committees. One will oversee the review of the Fiber unit, and the other will focus on selecting a new CEO. Earlier this month, Jay Brown, the former CEO, stepped down following Elliott's call for a leadership overhaul.
Under the terms of the agreement, Jason Genrich, a Senior Portfolio Manager at Elliott, will join Crown Castle's board, alongside Sunit Patel, a former executive at T-Mobile. They will be taking the places of Benjamin Moreland and Maria Pope.
The fiber division of Crown Castle reported a 4% increase in revenue in the most recent quarter. However, this figure represents a significant decrease of about 25% from the preceding quarter. This division contributes to nearly a third of Crown Castle's overall revenue.
Elliott has suggested several strategies for Crown Castle, including considering the sale of the fiber business, enhancing corporate governance, and refining its incentive plan.
Insider buys
Complete Solaria (NASDAQ:CSLR) announced that its chairman T.J. Rodgers had invested $5 million in the company at the market price via private placement. Following the announcement, shares jumped more than 9% yesterday.
Globalstar (NYSE:GSAT) Director, James Lynch, purchased 750,000 common shares, or worth nearly $1.3M, at $1.665-$1.6958 per share. Lynch is the Managing Partner of Thermo Capital Partners, which owns the shares that were bought. Lynch owns a total of 7,540,720/8,040,720 shares indirectly, through Thermo Capital, and another 806,930 directly following the latest purchase.
Beyond Air (NASDAQ:XAIR) saw a couple of insider buys. CEO, Steven Lisi, purchased 77,775 shares, or worth more than $125,000, at $1.6303. Meanwhile, Director, Rober Carey, purchased 1,200,000 shares, or worth nearly $2M, at $1.635.
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