Internap Shares Jump on Investor Stake

Shares of Internap Network Services (INAP) are higher this morning, apparently due to  growing interest in the company’s shares in investment funds. Today Dimensional Fund Advisors, an investment group based in Austin, Texas, said in an SEC filing that it owns 2.6 million shares (5.25 percent) of Internap’s stock. In late morning trading, shares of Internap are trading at $4.59, up 20 cents (about 4.5 percent) for the session. At that price, Dimension’s s take is valued at about $12.3 million.

Dimension is the third investment company to take a large position in Internap in the past two weeks. On Jan. 29 BlackRock Inc. disclosed a 5.9 percent stake in Internap, while Kornitzer Capital Managment said on Jan. 22 that it owns 6.7 percent of INAP shares.

Internap provides colocation, content delivery and network optimization services from a network footprint of about 250,000 square feet of space. Since taking over last year, CEO Eric Cooney has focused on an expansion of the company’s data centers, while it reduces its dependence upon space leased from third-party providers.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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  1. Justin

    DFA is a passive investment firm... i.e. - its products are effectively index funds (a la Vanguard). The firm does not do fundamental research, it buys stakes in hundreds/thousands of small cap value stocks (in order to make what is effectively a "small cap value index"). When large blocks come for sale, DFA will act opportunistically (to reduce transaction costs). Point being, the fact that DFA upped its stake in INAP doesn't mean that DFA has strong conviction in INAP's fundamentals.