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PALO ALTO, Calif. - Glenbrook Capital Management, a shareholder of Tejon Ranch Co. (NYSE:TRC), has publicly endorsed Bulldog Capital’s nominees for the company’s board of directors, ahead of the upcoming annual meeting on May 13. According to InvestingPro data, Tejon Ranch currently trades at $17.17 with a market capitalization of $461 million. Glenbrook, which holds approximately 1.1% of Tejon’s outstanding shares, also supports a shareholder proposal that would allow owners of a combined 10% of Tejon’s shares to call special meetings.
The investment firm expressed dissatisfaction with the current board’s management and transparency, criticizing the board for not engaging with shareholders and for the company’s underwhelming stock performance. While InvestingPro data shows the stock has gained 7.12% over the past year, analysis indicates the company is currently overvalued relative to its Fair Value. Glenbrook highlighted that 97% of NYSE companies hold quarterly earnings calls, a practice Tejon’s board has not adopted. The company maintains strong liquidity with a current ratio of 4.13, though it suffers from weak gross profit margins of just 4.52%.
Former CEO Gregory Bielli’s inclusion on the board’s slate of nominees for the annual meeting was particularly contentious. Glenbrook contends that Bielli’s tenure as CEO saw no significant improvement in stock price and that his appointment to the board and a subsequent consulting contract were unwarranted. InvestingPro analysis reveals several additional insights about the company’s performance and financial health, with 6 more exclusive ProTips available to subscribers.
The shareholder proposal, known as "Item 4," received backing from proxy advisory firms ISS and Glass Lewis. These firms argue that the ability for shareholders to call special meetings is a fundamental right that can impact corporate performance and shareholder returns. Glenbrook believes that approving this proposal and electing Bulldog’s three board nominees are crucial steps towards realizing Tejon’s potential value. The company operates with a moderate level of debt, with a debt-to-equity ratio of 0.14, and maintains profitable operations despite challenging conditions.
Glenbrook’s statement also contained forward-looking statements, cautioning that their expectations might not materialize and that actual outcomes could differ materially.
The press release concluded by stating that Glenbrook is not soliciting proxy cards for the annual meeting. The information presented is based on a press release statement from Glenbrook Capital Management.
In other recent news, Tejon Ranch Co. has reported a 15% increase in total revenue year-over-year, reaching $21.6 million, along with a significant 186% rise in GAAP net income attributable to common shareholders, amounting to $4.5 million. The company is actively seeking shareholder support for its board nominees, emphasizing their experience and strategic direction. Tejon Ranch Co. is urging shareholders to vote for its nominees, contrasting them with those proposed by Bulldog Investors, which the company argues lack relevant expertise and alignment with its long-term growth strategy. The company has recently appointed Matthew Walker as its new President and CEO, effective March 31, 2025, following a comprehensive search. Walker, with over two decades of experience in real estate, is expected to lead the company into its next growth phase. Tejon Ranch has also highlighted its strategic focus on developing its 270,000-acre land, which includes plans for four master-planned communities. The board has been refreshed with four new independent directors in the last six months, as part of a succession planning process that incorporated shareholder input. The company continues to emphasize its strategy of disciplined capital allocation and proactive investor communication.
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