Militia Capital Management LLC Makes New $2 Million Investment in Accelerant Holdings $ARX

Key Points

• Militia Capital Management bought 150,000 Accelerant Holdings shares worth approximately $2.0 million in the first quarter, giving it a 0.07% stake. Several other major institutional investors also initiated or increased positions in the company.
• Analysts maintain a generally positive outlook, with 10 Buy, two Hold and one Sell rating, producing a consensus “Moderate Buy” rating and an average price target of $18.60.
• Accelerant reported quarterly EPS of $0.17, slightly above expectations, while revenue rose 53.5% year over year to $273.2 million. However, shares opened at $11.85, and insiders have sold more than $12.3 million of stock over the past three months.

Militia Capital Management LLC purchased a new stake in shares of Accelerant Holdings (NYSE:ARX - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 150,000 shares of the technology company's stock, valued at approximately $2,004,000. Militia Capital Management LLC owned 0.07% of Accelerant as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently modified their holdings of ARX. Alliancebernstein L.P. acquired a new stake in shares of Accelerant in the third quarter valued at $41,529,000. Vanguard Group Inc. acquired a new position in Accelerant during the third quarter worth about $33,482,000. Balyasny Asset Management L.P. bought a new stake in Accelerant in the third quarter worth about $30,060,000. Azora Capital LP raised its position in Accelerant by 288.9% in the fourth quarter. Azora Capital LP now owns 2,439,094 shares of the technology company's stock worth $39,879,000 after acquiring an additional 1,811,976 shares in the last quarter. Finally, Millennium Management LLC acquired a new stake in Accelerant in the 3rd quarter valued at about $12,985,000.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ARX. Citizens Jmp reduced their price objective on shares of Accelerant from $20.00 to $17.00 and set a "market outperform" rating for the company in a research report on Monday, April 13th. Raymond James Financial raised their target price on shares of Accelerant from $16.00 to $19.00 and gave the stock an "outperform" rating in a report on Monday, June 1st. BMO Capital Markets lifted their price target on shares of Accelerant from $16.50 to $17.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 16th. Wells Fargo & Company dropped their price target on Accelerant from $17.00 to $16.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. Finally, Weiss Ratings lowered Accelerant from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, July 20th. Ten equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.60.

Accelerant Stock Performance

Accelerant stock opened at $11.85 on Monday. Accelerant Holdings has a fifty-two week low of $9.18 and a fifty-two week high of $30.48. The firm's 50 day simple moving average is $13.77 and its 200-day simple moving average is $13.26. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.61 and a quick ratio of 1.61. The company has a market cap of $2.58 billion and a P/E ratio of -1.70.

Accelerant (NYSE:ARX - Get Free Report) last posted its quarterly earnings data on Wednesday, May 13th. The technology company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. Accelerant had a negative net margin of 135.47% and a positive return on equity of 49.99%. The firm had revenue of $273.20 million during the quarter. The firm's revenue for the quarter was up 53.5% on a year-over-year basis. As a group, equities research analysts predict that Accelerant Holdings will post 0.73 EPS for the current year.

Insiders Place Their Bets

In other news, Director Nancy Hasley sold 35,000 shares of the firm's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $13.11, for a total value of $458,850.00. Following the completion of the sale, the director owned 1,362,323 shares of the company's stock, valued at $17,860,054.53. This trade represents a 2.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Matthew David Sternberg sold 17,568 shares of the stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $14.64, for a total value of $257,195.52. Following the completion of the sale, the chief operating officer directly owned 596,482 shares of the company's stock, valued at approximately $8,732,496.48. This represents a 2.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 903,405 shares of company stock worth $12,339,427 over the last three months. Company insiders own 66.59% of the company's stock.

Accelerant Profile

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company's solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices.

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