Starboard Value LP Acquires New Stake in Bloomin Brands Inc
Starboard Value LP, a New York-based private hedge fund sponsor, recently acquired a significant stake in Bloomin Brands Inc. (NASDAQ:BLMN). This article provides an in-depth analysis of the transaction, the profiles of the firm and the traded company, and the potential implications of this investment.
Transaction Details
On August 8, 2023, Starboard Value LP purchased 8,623,000 shares of Bloomin Brands Inc at a price of $25.77 per share. This new holding now represents 4.62% of Starboard's portfolio and 9.90% of Bloomin Brands' total shares. The transaction underscores Starboard's investment strategy of identifying undervalued companies, particularly within the consumer discretionary sector.
Profile of Starboard Value LP
Founded in 2002 by Jeff C. Smith and Mark Mitchell, Starboard Value LP is a private hedge fund sponsor that primarily invests in small-cap companies in the U.S. public equity markets. The firm's top holdings include Splunk Inc(NASDAQ:SPLK), Salesforce Inc(NYSE:CRM), GoDaddy Inc(NYSE:GDDY), Humana Inc(NYSE:HUM), and Vertiv Holdings Co(NYSE:VRT). With approximately $4.58 billion in total assets under management, Starboard Value LP has a strong presence in the technology and industrials sectors.
About Bloomin Brands Inc
Bloomin Brands Inc is a casual dining restaurant company that operates brands such as Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse and Wine Bar. The company, which went public on August 8, 2012, primarily generates revenue from franchise and other revenues, as well as restaurant sales. As of August 18, 2023, Bloomin Brands Inc has a market cap of $2.42 billion and a PE ratio of 10.76. The company's GF Score is 73/100, indicating average outperformance potential.
Comparison with Other Gurus
Other gurus who hold shares in Bloomin Brands Inc include First Eagle Investment (Trades, Portfolio), Keeley-Teton Advisors, LLC (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). However, the largest stake in the company is held by Hotchkis & Wiley Capital Management LLC. The investment strategies of these gurus vary, but all recognize the potential value in Bloomin Brands Inc.
Conclusion
Starboard Value LP's acquisition of a new stake in Bloomin Brands Inc is a significant move that aligns with the firm's investment philosophy. The transaction not only diversifies Starboard's portfolio but also provides Bloomin Brands with a vote of confidence from a respected investment firm. As the company continues to grow and improve its profitability, it will be interesting to see how this investment plays out in the long term.
This article first appeared on GuruFocus.
