Steve Cohen's Point72 Buys $156M Worth of Bill Holdings Shares Ahead of Potential Sale

New York Mets owner and billionaire investor Steven Cohen is known for his swift and agile approach to investing. His high-risk, high-reward strategy has earned him a personal wealth of $23 billion (£17.4 billion), according to Forbes.

From Hedge Fund to Family Office

Cohen founded SAC Capital Advisors, one of the most successful hedge funds before its demise. The firm was charged with insider trading and had to pay $1.8 billion (£1.3 billion) in penalties. Consequently, Cohen faced a two-year ban on managing investors' money.

In 2013, he transitioned his investment operations into a family office, adopting the name Point72 Asset Management the following year. By 2018, the firm became a registered investment adviser, opening to outside capital.

Point72's Recent Bargain Hunt

In a 13G form filed with the US Securities and Exchange Commission on Monday, Cohen's Point72 disclosed the purchase of over 3.2 million shares of Bill Holdings (NYSE:BILL) for $156.6 million (£118.8 million). This equates to an average buying price of $48.19 (£48.19) per share. The hedge fund increased its stake by over 180%, now holding more than 5 million shares.

Bill Holdings is a cloud-based software firm providing automated financial operations for businesses. Its services include digitising and overseeing back-office processes, facilitating electronic payments, and expense management.

The stock has declined 41% year-to-date, partly due to the company's consecutive quarters of lower adjusted earnings. This decline has raised questions about its growth prospects and strategic direction.However, recent speculation about a potential sale appears to be supporting the stock price.

Activist Investor's Influence

Shares of Bill Holdings surged 11% in a single trading session when Bloomberg reported that the company is exploring strategic options, including a potential sale, under pressure from activist investor Starboard Value.

The firm is working with a financial advisor to gauge interest from industry players and private equity, though no final decision has been made. Sources indicate Bill may choose to remain independent. The company has faced challenges from declining customer spending and intense competition.

Starboard's chief, Jeff Smith, entered into a cooperation agreement with Bill last month after disclosing a stake earlier this year. Subsequently, Bill appointed four new independent directors, one of whom was nominated by Starboard. The company also announced plans for an investor day in H1 2026.

The move to explore a sale comes amid ongoing consolidation in the payments sector, where larger companies and buyout firms have been acquiring smaller firms.

Bill Holdings Stock Price Forecast

Most analysts polled by TipRanks maintain a 'Buy' rating on the stock, with an average price target of $60.53 (£45.94) per share, implying an upside of over 22% from current levels. However, seven analysts currently rate the stock as a 'Hold'.

Cohen's recent trading activity, amidst the potential sale discussions, may suggest he agrees with Starboard's strategy of organisational restructuring. This could be a move to facilitate a much-needed turnaround for Bill Holdings amid a volatile macroeconomic environment.

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