Soros Fund Management LLC, the hedge fund headed by billionaire investor George Soros, increased its stake in Penn Virginia Corporation (NYSE:PVA) to 6,003,509 shares or 9.18% based on its latest 13D filed with the Securities and Exchange Commission (SEC) on Wednesday, March 12th.
The hedge fund held 5,829,845 shares of Penn Virginia Corporation (NYSE:PVA) based on its 13F filing in the fourth quarter of 2013.
Soros Fund Management’s new regulatory filing showed that it sold 165,006 shares of Penn Virginia Corporation (NYSE:PVA) for $11.91 per share on January 29. The hedge fund purchased 20,000 shares in the company for $13.10 per share and additional 220,000 shares for $13.06 per share & 250,000 shares for $13.04 per share on February 18. The following day, the hedge fund acquired an additional 50,000 shares for $13.08 a piece and 130,000 shares for $12.76 each.
Soros Fund Management indicated that Penn Virginia Corporation (NYSE:PVA) is an attractive investment and the common stock of the company is undervalued based on its current market price.
The hedge fund also stated that it may engage in discussions with the management of Penn Virginia Corporation (NYSE:PVA) from time to time regarding its business, assets, prospects and strategic alternatives and directions.
Soros Fund Management believes that the company “has been very well managed” and “the financial incentives for its management team should be enhanced.”
However, the hedge fund also believes that the management of Penn Virginia Corporation (NYSE:PVA) should explore strategic alternatives to enhance or maximize shareholder value. It indicated its intention to continue to discuss its observations with the management of the company.
Soros Fund Management also indicated its intention to seek conversations with the board of directors of Penn Virginia Corporation (NYSE:PVA), fellow shareholders, other industry participants, potential acquirers and other interested parties. It may also take other steps to bring changes or pursue other proposals to increase shareholder value. The hedge fund said it may take such actions in the future with respect to its investments in the company as it deems appropriate.
Penn Virginia stock soars
The shares of Penn Virginia Corporation (NYSE:PVA) are trading around $15.52 per share, up by more than 14% as of this writing, an increase of $1.06, in afternoon trading in New York.
Yesterday, analysts at SunTrust raised their price target for shares of Penn Virginia Corporation (NYSE:PVA) from $21 to $25 per share.