Why Express (EXPR) Stock Is Surging This Morning

NEW YORK (TheStreet) -- Shares of Express Inc. (EXPR) are surging, up 26.94% to $17.20 in pre-market trade, as Sycamore Partners said it's interested in acquiring the troubled clothing retailer company, Bloomberg reports.

Sycamore now has a 9.9% stake in Express, and in a letter to the retailer's board said that it would like to conduct due diligence to determine a takeover price.

Though Express responded by adopting a poison-pill defense, Sycamore's interest sent the shares as high as $18 after hours. The stock had closed at $13.55 before the letter was disclosed, giving the Columbus, Ohio-based company a market value of $1.14 billion, Bloomberg said.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

 

TheStreet Ratings team rates EXPRESS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate EXPRESS INC (EXPR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

Amazon Can't Even Be Stopped By a Massive Hurricane

Play Defense, Play the Dollar: Cramer's 'Mad Money' Recap (Tuesday 8/29/17)

Jackson Hole and a Solar Eclipse -- Week in Review

Market Rally Fades as Dow, S&P 500 and Nasdaq Finish Lower