SCHEDULE: Neuberger Berman Boosts Conduent Stake to 10.2%

Neuberger Berman Group LLC and its affiliates have disclosed a significant beneficial ownership of 10.2% in Conduent Inc., primarily for passive investment purposes.

Summary

• Neuberger Berman Group LLC and Neuberger Berman Investment Advisers LLC have filed an Amendment No. 3 to Schedule 13G regarding their beneficial ownership in CONDUENT Inc.
• Neuberger Berman Group LLC reported an aggregate beneficial ownership of 15,624,300 shares, representing 10.2% of Conduent Inc.'s common stock.
• Neuberger Berman Investment Advisers LLC reported an aggregate beneficial ownership of 14,703,343 shares, representing 9.6% of Conduent Inc.'s common stock.
• Neuberger Berman Group LLC holds shared voting power over 10,753,810 shares and shared dispositive power over 15,624,300 shares.
• Neuberger Berman Investment Advisers LLC holds shared voting power over 9,832,853 shares and shared dispositive power over 14,703,343 shares.
• The securities were acquired and are held in the ordinary course of business, without the purpose or effect of changing or influencing the control of Conduent Inc., other than activities solely in connection with a nomination under Rule 240.14a-11.
• The beneficial ownership is held in various fiduciary capacities for unrelated clients, with Neuberger Berman Group LLC and its affiliates having no economic interest in the securities; clients retain the sole right to dividends and sale proceeds.

Sentiment

Score: 5

Explanation: The filing is a standard regulatory disclosure of beneficial ownership, indicating a neutral sentiment as it does not contain operational or financial performance updates, but rather a factual statement of an investment position.

Positives

• The filing indicates a significant institutional investor, Neuberger Berman, maintains a substantial stake in Conduent Inc., which can be viewed as a vote of confidence in the company's long-term prospects.
• The passive nature of the investment, as certified by Neuberger Berman, suggests stability and a lack of immediate intent to disrupt corporate control.

Future Outlook

NA

Management Comments

• Brad Cetron, Managing Director for Neuberger Berman Group LLC and Neuberger Berman Investment Advisers LLC, certified that, to the best of his knowledge and belief, the securities were acquired and are held in the ordinary course of business and not for the purpose or with the effect of changing or influencing the control of the issuer, other than activities solely in connection with a nomination under Rule 240.14a-11.

Industry Context

This filing reflects a common practice among large institutional asset managers to disclose significant passive stakes in publicly traded companies, aligning with regulatory requirements for transparency in the investment landscape.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake by Neuberger Berman may influence market perception of Conduent Inc.'s stability and investment appeal.
• Company Management: Awareness of a large, passive institutional investor on the shareholder register may influence strategic considerations, though the filing explicitly states no intent to control.

Key Dates

Keywords

Conduent Inc, Neuberger Berman, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, Investment Advisers, Passive Investment