Supervalu Stock Plummets
Things aren't going well for Supervalu Inc. (NYSE:SVU), and the nearly 50 percent fall in the company's stock proves it.
According to The Wall Street Journal, the company has been in a painful struggle to report anything positive, with an earnings report that indicated a huge drop in sales, the company's decision to strike out its dividend and the ill-timed launch of a strategic review. All this together resulted in shares that fell to 32-year lows, and left many analysts wondering if the company would be able to sell itself even if it tried.
"We believe there is a now a very low probability of [Supervalu] being able to sell any of the assets to unlock the fair value, especially in the near term," UBS analyst wrote in a research note. "Buyers are not incentivized to pay full price when there is a strong possibility that they could buy it cheaper if SVU’s turnaround fails to materialize."
By the end of the day on Thursday, Supervalu stock had plunged 49.15 percent to $2.69 after finishing at $5.30 in the previous session.
It might not be surprising to see an uptick in insider transactions as the company flounders about in an attempt to walk away with cash.
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