Why Ann (ANN) Stock Is Lower Today

NEW YORK (TheStreet) -- Shares of Ann Inc. (ANN) are down 1.13% to $40.36 in mid-afternoon trading on Monday, after the women's apparel company, which sells merchandise under its Ann Taylor and LOFT brands, responded to hedges funds Red Alder LLC and Engine Capital's request the company consider selling itself to another apparel company or a private equity firm.

The company said its board welcomes input from shareholders and that it has reviewed the suggestions made by the hedge funds this morning.

Ann said its board will continue to "consider and determine the courses of action that are in the best interests of all its shareholders," but did not elaborate further.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Red Alder and Engine Capital said they believe that if another apparel company were to make a bid for Ann Inc. the company could bring a price between $60 and $65 per share, while a private equity firm could offer a price of $50 to $55 per share, Reuters reports.

Separately, TheStreet Ratings team rates ANN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ANN INC (ANN) a BUY. This is driven by some important positives, 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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