Home Business SAC Capital ups Stake in Vera Bradley, Inc. to 6%

SAC Capital ups Stake in Vera Bradley, Inc. to 6%

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According to a 13-D  filed with Securities and Exchange (SEC) late on Friday, Steven Cohen’s SAC Capital Advisors, has increased its holding in stake Vera Bradley, Inc. (NASDAQ:VRA) to 5.8% . Vera Bradley, Inc.has a market cap of $870 million, based on a closing price of $21.37 on Friday. The 5.8% stake or 2,338,200 shares purchased by Steve Cohen’s hedge fund, equals approximately 50 million.  SAC Capital previously held 189,320 shares of the Fort Wayne, Indiana based company, as of June 30th 2012.

SAC Capital ups Stake in Vera Bradley, Inc. to 6%

Vera Bradley, Inc. is a  producer, marketer, designer, and retailer of accessories for women.  Patricia R. Miller, who co-founded the company over 30 years ago, announced on September 6th, that should we be retiring.

The current price earnings ratio of the company is approximately 15.  The main competitors of the company include Macy’s, Inc. (NYSE:M), Michael Kors Holdings Ltd (NYSE:KORS), Coach, Inc. (NYSE:COH) and  Fifth & Pacific Companies Inc (NYSE:FNP).

For the 26 weeks ended 28 July 2012, Vera Bradley, Inc. (NASDAQ:VRA)revenues increased 17% to $240.2M. Net income increased 5% to $26M. Revenues reflect Direct segment increase of 36% to $124.9M, Indirect segment increase of 2% to $115.3M. Net income was partially offset by Unallocated corporate expenses segment loss increase of 20% to $35.1M. Basic Earnings per Share excluding Extraordinary Items increased from $0.61 to $0.64.

The most recent acquisitions/buys by SAC Capital Advisors, include; TiVo Inc. (NASDAQ:TIVO), and Clearwater Paper Corp (NYSE:CLW). SAC owns a 7.2% stake in Clearwater Paper Corp (NYSE:CLW), and is attempting to break up the company in order to unlock shareholder value.

A Spokesperson for SAC Capital Advisors Declined to comment on the transaction.

(Disclosure: The author of this article has no position in any securities mentioned.)


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