Clinton Group increases stake in Nutrisystem
Activist hedge fund Clinton Group had increased its stake in Nutrisystem Inc. Clinton Group had raised its stake to 5.2%. Clinton Group saw that the company's stock was undervalued which led to the hedge fund's stake increase. Clinton Group had been asking for an increase in dividend, said a filing on Monday.
According to Clinton Group, "Given our enthusiasm for all that you are doing and for the company's assets and opportunities, you can imagine how bewildered we are by the stock price."
Clinton Group had pushed Nutrisystem to appoint new members into its board of directors last year. Hedge fund manager Clinton Group had been pushing Nutrisystem Inc.'s board to raise its dividend. The hedge fund that the company's excess capital could improve value for shareholders and reduce the volatility of its stock price.
After increasing its stake in Nutrisystem, Clinton Group had become a top shareholder in the firm. Clinton Group CEO Dawn Zier said that the company's stock were undervalued based at its current price. The CEO also encouraged the company to raise its dividend after improved cash flow.
Shares increased by USD0.13 to USD14.30 in light premarket trading. The stock is up 73% this year.