13GD Ownership Change: Sothebys Has Another Bullish Trade, Taikang Insurance Group, Inc Bought Stake!

13GD Ownership Change: Sothebys Has Another Bullish Trade, Taikang Insurance Group, Inc Bought Stake!

The New Taikang Insurance Group, Inc Holding in Sothebys

Taikang Insurance Group, Inc filed with the SEC SC 13D/A form for Sothebys. The form can be accessed here: 000094562116000761. As reported in Taikang Insurance Group, Inc’s form, the filler as of late owns 14.99% or 7,939,661 shares of the Consumer Discretionary–company.

Sothebys stake is a new one for the and it was filed because of activity on November4, 2016. We feel this shows Taikang Insurance Group, Inc’s positive view for the stock.

Reasons Why Taikang Insurance Group, Inc Bought – Sothebys Stock

Purpose of Transaction


Item 4 is hereby amended and superseded with the following:

The Reporting Person has acquired the Shares for investment purposes based on a positive view of the Issuer’s business prospects. Based on this view, personnel of the Reporting Person have expressed to members of the Issuer’s Board of Directors (the “Board”) and management support for the Issuer’s broader strategic initiatives, and on November 4, 2016, the Reporting Person entered into a support agreement with the Issuer (the “Support Agreement”).

Under the Support Agreement, for the three years after the date of the Support Agreement, the Reporting Person will be subject to a standstill that will restrict the Reporting Person from acquiring beneficial ownership of Shares of the Issuer, if such acquisition results in the Reporting Person beneficially owning 15.00% or more of the Issuer’s Shares, or a higher amount if permitted by the Board. However, the terms of the Support Agreement permit the Reporting Person to exceed the beneficial ownership threshold under the following circumstances: (i) if the Reporting Person exceeds the threshold solely as a result of the Issuer engaging in share repurchases; (ii) if the Reporting Person makes a “qualifying offer” for all outstanding shares at the same per-share price conditioned upon acceptance by a majority of shareholders; and (iii) if another shareholder acquires beneficial ownership of more than 15.00% of the Issuer’s Shares (x) absent approval of the Board, in which case the Reporting Person may acquire the minimum amount necessary such that the Reporting Person’s beneficial ownership exceeds that of the other shareholder, or (y) in a new issuance or other Board approved transaction, in which case the Reporting Person may acquire beneficial ownership of 15.00% of the Issuer’s Shares. Under the Support Agreement, the Reporting Person also agrees to vote its Shares in the election of directors in accordance with the Board’s recommendations, to not engage in a proxy contest, initiate a lawsuit, or dispose of shares to a third party if such third party (or group affiliated with such third party) has (or would have as a result of the sale) an ownership interest in the Issuer of 5.00% or more in the aggregate.

In addition, in accordance with the Support Agreement, the Issuer has appointed Linus W. L. Cheung to the Board as an independent director, and has agreed to nominate Mr. Cheung for election to the Board at the 2017 Annual Meeting on the Issuer’s slate of director nominees. Further, the Issuer and Reporting Person will identify a mutually acceptable qualified independent director to replace Mr. Cheung should he become unable to serve as a director. The Support Agreement is to remain in effect for three years from the date of the Support Agreement, unless the Issuer and Reporting Person agree otherwise.

The Reporting Person will continue to analyze its investment in the Issuer on an ongoing basis. As part of this investment analysis process, the Reporting Person reserves the right to engage in future discussions with management of the Issuer and with third parties that may have an interest in the business affairs of the Issuer in order to monitor its investment and consider alternatives for growth and exploration of commercial opportunities. However, under the terms of the Support Agreement described above, the Reporting Person may not engage in a proxy contest, or acquire beneficial ownership of securities of the Issuer such that it beneficially owns 15.00% or more of the Issuer’s common stock (unless permitted by the Board, subject to certain exceptions described above).

Although the Reporting Person has no specific plan or proposal to dispose of Shares, the Reporting Person may also, at any time or from time to time, dispose of or distribute some or all of its Shares, depending on various factors, including but not limited to the price of Shares, prevailing market conditions, results, business, operations and prospects, other investment opportunities, and the Reporting Person’s own liquidity, diversification and investment considerations. However, as a condition of the Support Agreement, the Reporting Person will not dispose of shares to a third party if such third party (or group affiliated with such third party) has (or would have as a result of the sale) an ownership interest in the Issuer of 5.00% or more.

Depending upon such discussions and consideration of strategic alternatives, and subject to the limitations imposed by the Support Agreement, the Reporting Person could support one or more of the actions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D. The Reporting Person reserves the right to formulate other purposes, plans or proposals regarding the Issuer to the extent deemed advisable by the Reporting Person in light of current market conditions generally and specifically as they relate to the Issuer. The Reporting Person further reserves the right to add to or reduce their holdings in the Issuer at any time as circumstances warrant without prior notice, subject to the limitations of the Support Agreement.

A copy of the Support Agreement and the press release regarding the appointment of Mr. Cheung to the Board (the “Press Release”) issued by the Issuer on November 7, 2016 are attached hereto as Exhibits D and E, respectively, and incorporated by reference herein. The description of the Support Agreement contained herein is qualified in its entirety by reference to the full text of the Support Agreement.

Sothebys Institutional Sentiment

Latest Security and Exchange filings show 235 investors own Sothebys. The institutional ownership in Q3 2015 is very high, at 128.00% of the outstanding shares. This is decreased by 4782721 the total institutional shares. 67799355 were the shares owned by these institutional investors. In total 31 funds opened new Sothebys stakes, 87 increased stakes. There were 37 that closed positions and 77 reduced them.

5 managers had the stock in their top Ten. Notable investors are: Marcato Capital Management Lp, Shanda Asset Management Holdings Ltd..

Villere St Denis J & Co Llc is an institutional investor bullish on Sothebys, owning 2693147 shares as of Q3 2015 for 4.56% of its portfolio. Arrowgrass Capital Partners Llp owns 150000 shares or 2.55% of its portfolio. CA Marcato Capital Management Lp have 10.55% of their stock portfolio for 6571806 shares. Further, Lmcg Investments Llc reported stake worth 0.91% of its US stock portfolio. The NY Jericho Capital Asset Management Lp owns 2319885 shares. Sothebys is 4.62% of the manager’s US portfolio.

Business Profile

Sotheby’s is a global art business company. The Company operates in two segments: Agency and Finance. The Agency segment earns commissions by matching buyers and sellers of authenticated fine art, decorative art, jewelry, wine and collectibles (collectively, art or works of art or artwork or property) through the auction or private sale process. Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process and the activities of RM Sotheby’s. The Finance segment earns interest income through art-related financing activities by making loans that are secured by works of art. Its activities include Sotheby’s retail wine operations, Acquavella Modern Art, an equity investee, and sales of the remaining inventory of Noortman Master Paintings, an art dealer that was owned and operated by Sotheby’s are reported within all other segment.

SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.

Insitutional Activity: The institutional sentiment decreased to 0.57 in 2016 Q2. Its down 0.10, from 0.67 in 2016Q1. The ratio fall, as 37 funds sold all Sothebys shares owned while 78 reduced positions. 27 funds bought stakes while 38 increased positions. They now own 55.16 million shares or 4.11% less from 57.52 million shares in 2016Q1.

Shanda Asset Mgmt Holdg Limited owns 2.19 million shares or 11.54% of their US portfolio. M&R Management Inc holds 0.01% or 1,400 shares in its portfolio. Marcato Capital Management L P has 5.27M shares for 11.7% of their US portfolio. Commerzbank Aktiengesellschaft Fi owns 32,411 shares or 0.01% of their US portfolio. Blackrock has invested 0% of its portfolio in Sothebys (NYSE:BID). Voya Inv Mgmt Limited Liability has invested 0% of its portfolio in Sothebys (NYSE:BID). Ameriprise Financial Incorporated has 203,341 shares for 0% of their US portfolio. Marshall Wace Llp holds 0.06% or 260,776 shares in its portfolio. Plante Moran Fincl Advsr Llc has 28 shares for 0% of their US portfolio. Wolverine Asset Management Limited Liability Com accumulated 6,150 shares or 0% of the stock. South Dakota Council has 0.05% invested in the company for 79,000 shares. Utd Cap Advisers Limited Liability owns 9,132 shares or 0% of their US portfolio. Glenmede Communications Na, a Pennsylvania-based fund reported 525 shares. 1832 Asset Mngmt L P holds 0.02% of its portfolio in Sothebys (NYSE:BID) for 207,000 shares. Arcadia Investment Mngmt Corporation Mi holds 500 shares or 0% of its portfolio.

Insider Transactions: Since May 17, 2016, the stock had 3 insider buys, and 1 sale for $1.07 million net activity. On Wednesday, June 1 the insider Wilson Harry James bought $151,421. 4,000 Sothebys (NYSE:BID) shares with value of $111,562 were bought by WEIBLING DENNIS M. 21,000 shares with value of $738,190 were bought by Taikang Insurance Group – Inc. on Wednesday, November 9. Shares for $18,601 were sold by DELANEY KEVIN M. 6,620 shares were bought by DE SOLE DOMENICO, worth $200,536.

About 717,217 shares traded hands or 25.90% up from the average. Sothebys (NYSE:BID) has risen 35.54% since April 13, 2016 and is uptrending. It has outperformed by 31.61% the S&P500.

Sotheby’s is a global art business company. The company has a market cap of $2.14 billion. The Firm operates in two divisions: Agency and Finance. It currently has negative earnings. The Agency segment earns commissions by matching buyers and sellers of authenticated fine art, decorative art, jewelry, wine and collectibles through the auction or private sale process.

Sothebys (NYSE:BID) Ratings Coverage

Out of 8 analysts covering Sotheby’s (NYSE:BID), 1 rate it a “Buy”, 0 “Sell”, while 7 “Hold”. This means 13% are positive. $49.0 is the highest target while $25 is the lowest. The $32.50 average target is -15.32% below today’s ($38.38) stock price. Sotheby’s has been the topic of 12 analyst reports since July 28, 2015 according to StockzIntelligence Inc. Stifel Nicolaus maintained the stock with “Buy” rating in Tuesday, November 10 report. The rating was downgraded by Standpoint Research to “Hold” on Thursday, April 14. The firm earned “Buy” rating on Friday, December 18 by Stifel Nicolaus. The firm earned “Mkt Perform” rating on Friday, February 26 by Barrington Research. The stock of Sothebys (NYSE:BID) earned “Buy” rating by Standpoint Research on Wednesday, January 20. The stock of Sothebys (NYSE:BID) earned “Hold” rating by Sitfel on Thursday, February 11. The company was maintained on Thursday, September 3 by Williams Capital Group. Stifel Nicolaus downgraded the shares of BID in a report on Thursday, February 11 to “Hold” rating. The stock has “Hold” rating given by TheStreet on Tuesday, July 28.

More notable recent Sothebys (NYSE:BID) news were published by: Nytimes.com which released: “Sotheby’s Impressionist Auction Has ‘Thinner’ Sales After Election” on November 15, 2016, also Nytimes.com with their article: “Arts|Sotheby’s Reports $54.5 Million Loss in 3rd Quarter” published on November 07, 2016, Bloomberg.com published: “Cohen’s Point72 Exited Stake in Sotheby’s Amid Rise in Shares” on November 14, 2016. More interesting news about Sothebys (NYSE:BID) were released by: Therealdeal.com and their article: “Sotheby’s nixes plan to sell East Side HQ” published on November 14, 2016 as well as Ft.com‘s news article titled: “Sotheby’s Impressionist auction falls short of estimates” with publication date: November 15, 2016.

According to Zacks Investment Research, “Sotheby’s Holdings, Inc. is one of the world’s second largest auctioneers of fine arts, antiques and collectibles, offering property in collecting categories, among them paintings, jewelry, decorative arts, and books. Sotheby’s Holdings, Inc is the parent company of Sotheby’s worldwide auction businesses, art-related financing and private sales activities. The Company operates in countries, with principal salesrooms located in New York and London. The company also regularly conducts auctions in other salesrooms around the world, including Australia, Hong Kong, France, Italy, the Netherlands, Switzerland and Singapore.”

BID Company Profile

Sotheby’s, incorporated on March 30, 2006, is a global art business company. The Firm operates in two divisions: Agency and Finance. The Agency segment earns commissions by matching buyers and sellers of authenticated fine art, decorative art, jewelry, wine and collectibles (collectively, art or works of art or artwork or property) through the auction or private sale process. The Company’s Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process and the activities of RM Sotheby’s. The Finance segment earns interest income through art-related financing activities by making loans that are secured by works of art. Activities, including Sotheby’s retail wine operations, Acquavella Modern Art (AMA), an equity investee, and sales of the remaining inventory of Noortman Master Paintings, an art dealer that was owned and operated by Sotheby’s are reported within all other segment. All other segment also includes Sotheby’s brand licensing activities and other ancillary businesses.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.

Leave a Comment