NEW YORK (TheStreet) -- Shares of Sotheby's (BID) are down 1,87% to $43.00 after the New York Times reported this afternoon that activist investor Daniel S. Loeb called on shareholders to overthrow the auction house's "lackadaisical" board.
In a letter to shareholders, Loeb's hedge fund, Third Point, appealed to shareholders to vote for its proposal for the company.
Loeb accused Sotheby's board of lacking any "skin in the game," and that a "dysfunctional corporate culture" had resulted in a company that is poorly managed and focused on short-term goals.
TheStreet Ratings team rates SOTHEBY'S as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOTHEBY'S (BID) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: