ETWO - Why E2open Parent Holdings Stock Popped Today
2023-10-16 14:53:00 ET
Shares of E2open Parent Holdings (NYSE: ETWO) were up 24.5% as of 1:30 p.m. ET Monday after billionaire activist investor Paul Singer took a significant stake in the company through his firm Elliot Investment Management.
In a Securities and Exchange Commission (SEC) filing this morning, E2open disclosed that Elliot Investment Management now owns 27.25 million shares at a cost of just over $69.6 million, or $2.55 per share. Elliot also entered into derivative agreements in the form of cash-settled swaps on another 14,526,506 shares. All told, that brings Elliot's stake to around 13.8% of the company -- more than doubling the 6.8% stake it held as of June 30, 2023.
The timing of the move is no coincidence; E2open stock only just plunged more than 40% last week after the company announced disappointing quarterly results, reduced its full-year outlook, and announced the resignation of its CEO. In an earnings press release, E2open CFO Marje Armstrong admitted the company's "growth rate remained below [its] potential." Armstrong also suggested revenue headwinds will likely persist for several quarters as the company implements initiatives aimed at improving its go-to-market performance and reaccelerating growth.
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Why E2open Parent Holdings Stock Popped Today