Dallas, Texas 06/26/2015 (Financialstrend) – Pep Boys-Manny Moe and Jack (NYSE:PBY) appears to have been on the radar of investors as it remained active in yesterday’s trading session.
Much of the interest in the auto-parts as well as services retailer comes from the investment interest shown by the likes of equity firm, Golden Gate Capital, besides similar-sized companies. The continued investment interests have led to a bullish growth for this stock.
However, there has been other news about the company. Recently, Yahoo finance news reported that people who know Pep Boys-Manny Moe and Jack (NYSE:PBY) remarked that, the company was “not working with any investment bank on a sale.” The person also claimed that the company had not negotiated with other parties for a sale either. Hence, there was lack of clarity on whether the company wanted to make a sale, the person claimed. Therefore speculation that equity firms and other investors were interested in dealing with Pep Boys was ‘far from certain.’
In the news week when such proposed developments were discussed the stock saw 16% rise, closing at $10.75, preceding the strong ‘bullish’ phase of growth. The important start, however, came from the company’s quarterly financial reports and the upwardly revised outlook. The expectation is currently at $0.16 to $0.25 for 2015 financial year and $0.23 to $0.33 in the following year. Besides, the appointment of Board Member, Scott Sider as new CEO, further encouraged positive investor sentiment.
With talks of potential buyers doing the rounds, Pep Boys-Manny Moe and Jack (NYSE:PBY) is expected to remain ‘bullish’ in the coming weeks. The present stakeholders in the company are Mario Gabelli-led GAMCO investors with 12% stake as filed by the company. Others holding stake in the company include Glenhill Advisors, holding 7.8% to 7% in first quarter as per 13D filing. Therefore, investments from other private equity firms are leading to a bullish curve, for Pep Boys in recent trading sessions.