NEW YORK-Shares of Macy’s stock opened just above $66 per share on Tuesday but had climbed steadily to the $70 mark by noon. Is this a blow to Donald Trump’s supporters’ campaign against the company? Have they been cutting their Macy’s credit cards in vain? Are liberals flocking to support Macy’s in their fight against Trump?
Not quite. According to The Street, the boost is purely reaction to a statement made today by Starboard Value fund manager Jeff Smith who identified the stock as an undervalued one that should be trading at $125. He also called Macy’s stock, “his best idea for 2015”. Investors flocked to it in morning trading.
Whether or not Smith’s statement was a reaction to the negative press received by the company in recent days is not quite certain and whether or not the trend will continue, one thing is certain, a statement made by an investor has caused the price to rise a days after bad news caused a slight drop.