Lowe’s Companies, Inc. shares rose more than 5% on Friday afternoon after Bloomberg reported that an activist hedge fund was building a stake. According to sources familiar with the matter, D.E. Shaw has started building an activist stake in Lowe’s following the launch of its new activist platform under portfolio manager Quentin Koffey, who previously worked at Paul Singer’s Elliott Management Corp.
While the activist hedge fund’s specific plans weren’t immediately apparent, Lowe’s has been struggling to compete with The Home Depot, Inc. and continue its momentum following hurricanes Harvey and Irma, which boosted third quarter same-store sales. D.E. Shaw has previously proposed spinouts and other actions at other public companies with the goal of increasing short- and long-term shareholder value. (see also: The D.E. Shaw Group: Investment Manager Highlight.)
Lowe’s shares moved sharply higher after D.E. Shaw reportedly took an activist stake, but traders will be watching these key levels. …read more
Read more here: Lowe’s Stock Breaks Out After Activist Investor Takes a Stake
Category: LOW, HD