SCHEDULE 13G/A: Morgan Stanley Reduces Stake in AudioCodes Ltd. Below 5% Threshold

Morgan Stanley and its subsidiary, Morgan Stanley Capital Services LLC, have reported a reduction in their beneficial ownership of AudioCodes Ltd. ordinary shares, falling below the 5% reporting threshold.

Summary

• Morgan Stanley and Morgan Stanley Capital Services LLC filed an Amendment No. 2 to Schedule 13G regarding their beneficial ownership of AudioCodes Ltd. Ordinary Shares.
• As of March 31, 2025, Morgan Stanley's aggregate beneficial ownership was 1,265,241 shares, representing 4.3% of the class.
• As of March 31, 2025, Morgan Stanley Capital Services LLC's aggregate beneficial ownership was 1,236,458 shares, representing 4.2% of the class.
• Both Morgan Stanley and Morgan Stanley Capital Services LLC have ceased to be beneficial owners of more than five percent of AudioCodes Ltd.'s ordinary shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 4

Explanation: The sentiment is mildly negative as a significant institutional investor reducing its stake below a key threshold can be perceived as a loss of confidence or a strategic rebalancing, potentially impacting market perception.

Negatives

• Morgan Stanley and its subsidiary, significant institutional investors, have reduced their stake in AudioCodes Ltd. below the 5% beneficial ownership threshold, which could be perceived as a decrease in institutional confidence or interest.

Risks

• A reduction in significant institutional ownership could lead to decreased investor confidence or increased selling pressure on AudioCodes Ltd.'s stock.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding AudioCodes Ltd.'s future performance or outlook.

Management Comments

• "As of the date hereof, Morgan Stanley has ceased to be the beneficial owner of more than five percent of the class of securities."
• "As of the date hereof, Morgan Stanley Capital Services LLC has ceased to be the beneficial owner of more than five percent of the class of securities."
• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This filing is a routine disclosure of a change in institutional ownership and does not provide broader industry context or trends for the telecommunications or unified communications sector in which AudioCodes Ltd. operates.

Stakeholder Impact

• Shareholders: The reduction in a significant institutional holding by Morgan Stanley could influence investor sentiment and potentially the stock price of AudioCodes Ltd.

Key Dates

Keywords

AudioCodes Ltd., Morgan Stanley, Schedule 13G, Beneficial Ownership, SEC Filing, Ordinary Shares, Institutional Investor, Stake Reduction, M15342104