The San Antonio-based fuel distributor and convenience store operator announced that it would appoint two new board members as part of an agreement with activist investors JCP Investment Management and Engine Capital.
Tad Dickson, who previously served as the chairman of The Pantry, and Rocky Dewbre, who served as executive VP of Sunoco's (SUN) channel operations, will join CST's board, CST said in a statement.
"Over the past several months, one of our major goals as a board has been to add key skill sets and further diversify and strengthen our board's breadth of experience," CST CEO Kim Lubel said in a statement. "These outstanding executives are tremendous resources in providing valuable industry experience and insight into our corporate strategies and assisting with the board's review of alternatives to enhance stockholder value."
As of the market close today, 2.82 million shares of CST have traded, versus the company's 30-day average of about 823,000 shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.
You can view the full analysis from the report here: CSTCST data by YCharts