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Stock Market & Financial Investment News

News Breaks
June 9, 2014
10:18 EDTDLTR, DG, FDODollar stores rally after Icahn takes Family Dollar stake
Shares of Family Dollar (FDO) are climbing after well-known activist investor Carl Icahn disclosed that he had obtained a significant stake in the company and Fox Business reported that Icahn could push for a merger between Family Dollar and peer Dollar General (DG). WHAT'S NEW: Carl Icahn disclosed in an SEC filing late Friday that he had obtained a 9.39% stake in discount retailer Family Dollar. Icahn stated that he believes the company's stock is undervalued and added that he sees great long-term potential in the sector. Meanwhile, Icahn told Fox Business that he would consider trying to get Family Dollar to merge with another company in the sector, Dollar General. For its part, Family Dollar said that it was open to holding dialogues with all of its shareholders, but then adopted a one-year shareholder rights plan meant to prevent anyone from gaining control of the company without paying a premium. ANALYST REACTION: In a note to investors earlier today, Jefferies analyst Daniel Binder upgraded Family Dollar and Dollar General to Buy from Hold. The analyst upgraded the stocks based on his belief that the companies could merge. A merger could allow the companies to generate large cost savings, according to Binder. He set a $79 price target on Family Dollar and a $75 price target on Dollar General. Significantly less optimistic about the potential for a merger was FBR Capital analyst Dutch Fox. Dollar General doesn't want to merge with Family Dollar and such a deal won't happen anytime soon, the analyst contended. However, both companies could launch share repurchase plans, he believes. Fox kept a Market Perform rating on Family Dollar and an Outperform rating on Dollar General. He recommended that investors respond to the news by being long Dollar General in the short-term. PRICE ACTION: In early trading, Family Dollar jumped 15% to $69.50, Dollar General surged 11% to $64.25, and Dollar Tree (DLTR), another retailer in the space, rose 2% to $56.35.
News For FDO;DG;DLTR From The Last 14 Days
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July 2, 2015
16:53 EDTDLTR, FDODollar Tree says receives FTC clearance to complete Family Dollar merger
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July 1, 2015
16:53 EDTFDOFamily Dollar reports Q3 adjusted EPS 74c, consensus 82c
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June 30, 2015
07:28 EDTDLTR, FDODollar Tree shares poised to outperform, says Wells Fargo
Wells Fargo predicts that Dollar Tree will be re-ranked by quantitative investment models following its merger with Family Dollar (FDO), enabling Dollar Tree's stock to outperform. The firm predicts that Dollar Tree's P/E ratio will become much lower versus its peers after the merger closes. Wells keeps an Outperform rating on Dollar Tree.
June 25, 2015
09:21 EDTFDOFamily Dollar volatility low into Q1 and outlook
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08:01 EDTDGDollar General names John Garratt as interim CFO, effective July 1
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