Recently, an unnamed investor took an interest in PGT Innovations (NYSE:PGTI) and started buying a lot of shares. PGT Innovations established what some called a “limited-duration shareholder rights plan” and what others called a “poison pill.” The measure would activate once any single investor purchased at least 10% of PGT Innovations stock. This caused shares to jump almost 10% in today’s session.
The plan’s duration is one year, and if that massive buy-out should take place, other shareholders can purchase PGT Innovations stock at “the then-current exercise price.”
Furthermore, Jefferies analyst Philip Ng noted that a reasonable takeover offer for the company from a strategic investor could be around the $33 per share range based on a 10x EV/EBITDA multiple, citing when Masco (NYSE:MAS) sold its Milgard Windows business back in 2019.
Furthermore, PGTI stock appears to be well-liked by institutional investors. Indeed, hedge fund confidence is currently rated as Positive, as they added 162,400 shares of PGT Innovations to their holdings last quarter. This is the sixth consecutive quarter where hedge funds increased their stakes in the company.
