7.4% Stake of Hill International, Inc. (HIL) Maintained by Engine Capital, L.P.
Engine Capital, L.P.
recently stated that they own 7.4% of Hill International, Inc. (NYSE:HIL) in a Form 13D disclosure that was filed with the Securities and Exchange Commission on Monday, November 6th. The investor owns 3,857,332 shares of the stock worth about $20,443,860. The reporting parties listed on the disclosure included Engine Capital, LP, Engine Jet Capital, LP, Engine Capital Management, LLC, Engine Investments, LLC and Arnaud Ajdler. The filing is available through the SEC website at this link.
Engine Capital, L.P.
provided the following explanation of their ownership:
The Reporting Persons purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.
The Issuer is currently trading at an enterprise value to revenue of approximately 0.6x and an enterprise value to normalized EBITDA (assuming an EBITDA margin of 10%) of around 6.0x. The Reporting Persons believe that peer companies trade for at least 1x revenue and 9x EBITDA implying significant upside for the Issuer’s shares. The Reporting Persons expect that this valuation gap will close as the Issuer demonstrates improved profitability and shows progress on its publiclyannounced profit improvement plan. The Reporting Persons intend to continue to have discussions with the Issuer’s Board of Directors (the “Board”) regarding various opportunities to increase and maximize shareholder value.
No Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein. The Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors, including, without limitation, the Issuer’s financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate, including, without limitation, engaging in communications with management and the Board, engaging in discussions with stockholders of the Issuer and others about the Issuer and the Reporting Persons’ investment, making proposals to the Issuer concerning strategic alternatives, the calling of special meeting(s), changes to the capitalization, ownership structure, board structure (including board composition) or operations of the Issuer, purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares, or changing their intention with respect to any and all matters referred to in Item 4.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. Susquehanna International Group LLP lifted its stake in Hill International by 282.5% in the 2nd quarter. Susquehanna International Group LLP now owns 21,900 shares of the business services provider’s stock worth $114,000 after acquiring an additional 33,900 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in Hill International by 50.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 35,965 shares of the business services provider’s stock worth $186,000 after acquiring an additional 12,071 shares in the last quarter. Teachers Advisors LLC lifted its stake in Hill International by 14.0% in the 2nd quarter. Teachers Advisors LLC now owns 65,570 shares of the business services provider’s stock worth $341,000 after acquiring an additional 8,047 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in Hill International by 4.4% in the 1st quarter. Bank of New York Mellon Corp now owns 121,390 shares of the business services provider’s stock worth $504,000 after acquiring an additional 5,117 shares in the last quarter. Finally, Menta Capital LLC lifted its stake in Hill International by 5.0% in the 2nd quarter. Menta Capital LLC now owns 106,629 shares of the business services provider’s stock worth $554,000 after acquiring an additional 5,110 shares in the last quarter. 53.08% of the stock is owned by institutional investors and hedge funds.
Hill International, Inc. (NYSE:HIL) traded up $0.20 during midday trading on Monday, hitting $5.30. The stock had a trading volume of 350,306 shares, compared to its average volume of 176,026. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 1.79. Hill International, Inc. has a one year low of $1.95 and a one year high of $5.70.
Several brokerages have weighed in on HIL. ValuEngine raised Hill International from a “sell” rating to a “hold” rating in a research report on Friday, September 1st. BidaskClub lowered Hill International from a “hold” rating to a “sell” rating in a research report on Wednesday, August 2nd.
Hill International Profile
Hill International, Inc is a professional services firm. The Company provides program management, project management, construction management and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets worldwide. It operates in Project Management Group segment.
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