Aggressive investor Irenic's purchase caused Ralliant's stock price to rise

Investing.com – Ralliant Corporation (NYSE:RALL) stock rose 4.5% on Tuesday after Reuters reported that activist investor Irenic Capital Management has built a position in this precision technology manufacturer and is pushing for operational changes.

According to two sources familiar with the matter, Irenic owns about 2% of Ralliant and has met multiple times with management to discuss potential reforms to help the $4.7 billion market cap company improve performance. The sources requested anonymity because they were not authorized to discuss private conversations.

The sources said that the New York-based hedge fund hopes the North Carolina-based company will commit to repurchasing more shares. Ralliant stated in its early February earnings report that the $200 million buyback authorization approved by the board last year “remains fully available.” Irenic believes the company could announce a larger buyback program and accelerate its share repurchase plan, which is a quick, contractual approach that allows the company to buy back a large amount of its own shares immediately.

The sources also said that Irenic is pushing Ralliant to cut daily operating expenses. The company had previously raised cost forecasts twice, surprising investors, including expenses related to performance-based salary increases and other employee costs.

The activist investor wants Ralliant to focus more on its defense and electronics businesses.

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