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.
Read Full Insider Report For: SVU |