ETWO - Why E2open Stock Jumped (Another) 22% This Week
2023-10-20 06:05:00 ET
Shares of E2open (NYSE: ETWO) were up 22.4% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence , following news that an activist investing firm has increased its stake in the company and is reportedly considering a bid to take it private.
To be sure, virtually all of E2open's rally occurred on Monday after a Securities and Exchange Commission (SEC) filing revealed billionaire activist investor Paul Singer's firm, Elliott Investment Management, now holds 27.25 million shares of E2open at a cost of just over $69.6 million, or $2.55 per share. The firm also entered into derivative agreements in the form of cash-settled swaps on another 14,526,506 shares, bringing its exposure to around 13.8% of the supply chain software company . The move more than doubled the 6.8% position Elliott Investment held in E2open as of the midpoint of 2023.
The timing is no coincidence. E2open stock plummeted more than 40% last week as investors lamented the company's weak quarterly results, disappointing full-year outlook, and resignation of its CEO. At the time, CFO Marje Armstrong acknowledged E2open's "growth rate remained below [its] potential," adding that growth reacceleration initiatives will likely take several quarters to yield results.
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Why E2open Stock Jumped (Another) 22% This Week