Cardtronics PLC (CATM:US)
12-month performance: -18%
Insider activity: Bullish
Buying pattern: Multiple purchases from activist investor
Recent news: Provided business update
Cardtronics is the world’s largest ATM operator. The company has approximately 285,000 ATMs across the world, and processes over two billion transactions every year. It is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $1 billion.
Cardtronics issued an encouraging business update on 15 June. Not only did the company say that it had seen continued improvement in transaction volumes across geographies as governments had relaxed and removed Covid-19 lockdowns, but it also said that since the beginning of June, total cash dispensed at its US ATMs on a same-unit basis was up nearly 10% versus June last year. This suggests that cash usage remains robust.
What has caught our attention here is the fact that activist investor Hudson Executive Capital – a value-oriented event-driven fund that is focused on engaging with US small/mid-cap public companies that have significant potential – has recently added to its position in Cardtronics. Between 19 June and 26 June, the fund acquired 478,924 shares in Cardtronics, spending $11.2 million on stock. Hudson Executive Capital is led by Douglas L. Braunstein, who was previously CFO and Vice Chairman at JPMorgan Chase & Co and now sits on the board at Cardtronics. We see this buying activity from the activist investor as a bullish signal. Given that Braunstein is on the board at Cardtronics, he is likely to have a good understanding of the company’s recent trading performance and its future prospects.