Activist Holdings

LL Flooring Holdings (LL)

F9 Investments reported holding 2,698,907 shares of the flooring retailer, equal to 8.8% of the outstanding stock. On May 26, F9 Investments, in conjunction with its wholly owned Cabinets to Go, made an unsolicited cash offer to acquire LL Flooring for $5.76 per share. F9 Investments withdrew that offer on Aug. 17, “in light of LL’s deteriorating financial and operational performance and eroding value, as disclosed in LL’s second-quarter 2023 results.”

LL Flooring’s board had already rejected the offer on June 26, believing that it “undervalued the worth” and the potential of the company.

Investors soured on LL Flooring after it reported year-over-year drops of 20.9% and 22.2% in second-quarter net sales and comparable-store sales, respectively, on Aug. 9. Shares have since whipsawed, surging higher after LL Flooring’s board announced on Aug. 14 that it was exploring strategic alternatives, only to falter after F9 Investments’ offer withdrawal three days later. F9 Investments is LL Flooring’s largest shareholder.

LL Flooring stock has dropped nearly 40% this year. Last month, the company named Robert L. Madore chief financial officer, effective on July 10. Madore was previously CFO of cannabinoid firm Cronos Group (CRON), and of retailers American Eagle Outfitters (AEO) and Ralph Lauren (RL). His predecessor at LL Flooring, Nancy Walsh, left in December.

Earthstone Energy (ESTE)

Post Oak Energy Capital has disclosed a position of 11,167,213 shares of Earthstone Energy, which is equal to 10.5% of the outstanding stock. This disclosure follows a voting and support agreement between Post Oak Energy, Earthstone Energy, and Permian Resources on August 21. Under this agreement, Post Oak will vote all of its eligible Earthstone shares in favor of Permian Resources' all-stock acquisition of Earthstone. It's worth noting that Post Oak will not be selling or transferring any Earthstone shares. The merger is expected to be finalized by the end of the year.

Decreases in Holdings

Alight (ALIT)

Blackstone Group has decided to reduce its stake in the payroll-and-benefits technology firm. Their stake now stands at 47,751,475 shares after selling a combined total of 13,928,840 Alight shares through a secondary offering. The offering was priced at $7.98 per share after applying the underwriters' discount. Additionally, the same Blackstone affiliates sold another 775,763 shares to Alight as part of a repurchase agreement that was contingent on the closing of the offering. Both transactions were completed on August 22, leaving Blackstone with a 9.1% interest in Alight.

Wendy's (WEN)

Trian Fund has decided to reduce its position in Wendy's burger chain. Two Trian affiliates sold 2,905,569 Wendy's shares on August 22 at a price of $20.30 each. This reduction in position was done for portfolio management purposes. Trian Fund now holds a 16.1% stake in the company's tradable stock.