Activist Investor Buys Another $1.1 Million in Unifi Stock

11/9/18

By Jackson Liu, NC Biz News

An activist hedge fund known for pushing companies for board of director positions has bought another $1.1 million of stock in Greensboro-based Unifi Inc., according to a filing with the Securities and Exchange Commission.

San Francisco-based ValueAct Capital Management has purchased another 43360 shares in Unifi between Nov. 6 and Nov. 8, according to the filing, paying between $26.36 and $26.48 per share.

ValueAct has already purchased 925,000 shares in Unifi between March 22 and May 11, paying between $29.87 and $36.12 per share.

Eva Zlotnicka, a vice president at ValueAct Capital, was appointed to the board of directors of Unifi in early August.

ValueAct is famous for working behind the scenes with management to improve operations. In 2016, ValueAct built up a stake in Rolls-Royce Holdings Plc and was able to put one of its executives, Bradley Singer, on the engine maker’s board of directors. It is also a large shareholder of theme park and attraction company Merlin Entertainments Plc.

In the filing for previous stock purchases between March 22 and May 11, ValueAct said that it believed the securities were undervalued and represented an attractive investment opportunity.

Since ValueAct’s last stock purchase in May, Unifi’s shares has fallen by more than 16 percent. Its shares fell 30 cents, or 1.11 percent, to $26.66 in Thursday trading.

Unifi was recently struggling with its international competitors. Last month, the Greensboro-based textiles company filed a petition with the U.S. Department of Commerce alleging that illegal dumping of yarn from China and India was hurting its business.

Unifi, a producer of polyester and nylon yarns, reported a weak first-quarter profit last month due to decrease in gross profit and increase in SG&A expenses.

The company reported net income of $5.7 million, or 10 cents per share, compared to net income of $10.2 million, or 48 cents per share, in the first quarter of 2018.

Recent Deals

Interested in advertising your deals? Contact Edwin Warfield.