- The stock price of Kohl’s Corporation (NYSE: KSS) is trading at over 10% intraday. This is why it happened.
The stock price of Kohl’s Corporation (NYSE: KSS) was trading at over 10% intraday as it went from a previous close of $52.70 to a day high of $58.31. The stock price went up after it was revealed that a group of activist investors is pushing for changes at the company.
The investor group — which includes Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital — now have a 9.5% combined stake of the company. And the investor group said that they believe without material change to the board, the company and shareholders will experience stagnant sales, declining gross margins, SG&A, ineffective marketing, declining inventory returns, ineffective capital allocation, and a persistently deteriorating EPS.
The group had nominated 9 people as independent candidates for the board of directors at the company, including Marjorie L. Bowen, James T. Corcoran, David A. Duplantis, Jonathan Duskin, Margaret L. Jenkins, Jeffrey A. Kantor, Thomas A. Kingsbury, Margenett Moore-Roberts, and Cynthia S. Murray.
Kohl’s issued a statement against the investors:
“The Kohl’s Board and management team have been engaged in discussions with the Investor Group since early December and we remain open to hearing new ideas. Kohl’s is deeply committed to enhancing shareholder value and is confident the Company’s new strategic framework, published in October 2020, will accelerate growth and profitability. Since we published the new strategy, Kohl’s has received seven equity analyst upgrades and our stock price has appreciated more than 150%,” said a Kohl’s spokesperson in an email sent to Yahoo Finance.
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