Disney rejects Trian’s board seats request: Insider trades & hedge funds weekly

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Investing.com — Here is your Pro Recap of the biggest insider trades and institutional investor headlines you may have missed this week: Walt Disney turns down Trian request for Board representation, Elliott takes $1 billion stake in Phillips 66 and seeks board seats, and top brass buys at Arbor Realty Trust , Agilon Health, and 3D Systems.

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Walt Disney turns down Trian Fund Management request for Board representation

Trian Fund Management, led by activist investor Nelson Peltz, announced that their request for board representation at Walt Disney (NYSE:DIS) was rejected. Holding about $3 billion in Disney shares, Trian disclosed that despite discussions with Disney’s CEO and an invitation to meet with the board, their proposal for board seats, including one for Peltz, was declined.

This comes after reports stated that Peltz might nominate at least three directors for Disney’s board.

“Since we gave Disney the opportunity to prove it could ‘right the ship’ last February, up to our re-engagement weeks ago, shareholders lost ~$70 billion of value,” said Trian in its statement, noting low investor confidence and looming key strategic questions.

Trian’s latest statement follows the appointment of James P. Gorman, Morgan Stanley’s chairman and CEO, and veteran media executive Jeremy Darroch as new Disney directors. While acknowledging these appointments as positive, Trian believes they are insufficient to regain investor trust or address the fundamental problems under the current board’s oversight. Trian plans to take the case for change directly to shareholders.

Elliott takes $1B stake in Phillips 66, seeks board seats

Elliott Investment Management has taken a position worth $1B in Phillips 66 (NYSE:PSX) and is pushing to appoint two board members at the oil refining company.

In a letter on Wednesday, Elliott proposed strategies for Phillips 66 to address its performance issues, enhance execution, rebuild investor trust, and significantly increase shareholder value, estimating approximately 75% upside to the current stock price.

Elliott expressed support for the company’s 2025 goals but noted investors’ doubts about the company’s capability to achieve these targets. The letter highlighted the need for the Phillips 66 management team, led by Mr. Lashier, to make tangible progress towards these goals to maintain investor support. However, Elliott also recognized the market’s skepticism and urged the board to take steps “to reassure investors that Phillips 66 is in the best possible position to achieve its value-creation potential”.

Elliott’s call to action comes amid Phillips 66’s underperformance compared to industry peers like Marathon Petroleum (NYSE:MPC) and Valero Energy (NYSE:VLO) over the past three years.

In response, Phillips 66 stated its intention to maintain constructive talks with Elliott Investment Management. Phillips 66 retained two top financial and legal advisers for its duel with activist investor Elliott Investment Management, according to Reuters, which cited people familiar with the matter.

This news, along with Elliott’s proposals positively impacted investor sentiment. Phillips 66’s stock price experienced a significant increase in the last two days, closing the week with more than an 8% gain.

Insider buys

Arbor Realty Trust (NYSE:ABR) saw a couple of insider buys on Wednesday. Chairman, CEO and President Ivan Kaufman purchased 40,000 common shares, or worth around $480,000, at $11.86-$12.05. Meanwhile, CFO, Paul Elenio, bought 5,000 common shares, or worth around $60,000, at $11.90-$12.03

Shares gained more than 3% yesterday.

agilon health (NYSE:AGL) Director, Jeffrey Schwaneke, purchased 22,300 common shares, or worth over $250,000, at $11.22. Schwaneke owns a total of 31,931 shares following the latest purchase.

Shares are up nearly 2% pre-market today.

3D Systems (NYSE:DDD) Director, Thomas Erickson, bought 50,000 common shares, or worth $265,000, at $5.30. Erickson owns a total of 257,294 shares following the latest purchase.

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