Now here's a wager.
The former CEO of Gap, Inc. (GPS) and newly appointed co-chairman of the board at Lululemon Inc. (LULU) , Glenn Murphy, has bought 100,000 of the athleisure-maker's stock in two separate transactions on Monday, June 26, and Tuesday, June 27, according to a filling of the Securities and Exchange Commission on Wednesday.
Could that move have sent Lululemon's stock upward?
The stock was up 6.9% to $58.82 on Thursday morning. On Aug. 19, 2016, the stock had a high of $80.65.
The rise in the stock on Wednesday fueled speculation on a long-simmering rumor that the struggling yoga wear company may be on the block to go private, at a price of $70 per share, according to analyst Joshua Rodriguez of CNA Finance. Rodriguez told TheStreet Wednesday that he'd heard speculation that the sale price could go at high as $80 a share, but reiterated that it couldn't be confirmed yet.
Murphy, who could not be reached for comment on Wednesday, is the founder and CEO FIS Holdings, was the CEO and chairman of Gap for seven years and CEO of Shoppers Mart Drug Corporation.
In the last year, the company has dealt with a slowdown in customer interest and change in fashion trends, both of which have impacted sales. And it has also closed stores, like many mall-based retailers. The company plans to shut down approximately 40 of its 55 ivivva stores geared to girls by Aug. 20 and convert about half of the remaining locations to lululemon stores this year. All affected employees will work until Sept. 1 and, if possible, be placed in other jobs within the company. Lululemon said that because the ivivva stores have been operating at a slight loss, it made the decision to close the bulk of them, while eight will remain in key communities and seven stores will be converted into Lululemon stores, where sales have been stronger.
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