Speculation over the possible sale of Aeropostale (ARO) saw ARO stock rise over 4% on Thursday.
There was talk over the apparel retailer possibly selling after executives cancelled an appearance at the ICR XChange Conference. The speculation of a sale has escalated over the fact that Aeropostale has no upcoming events listed on its website. Crescendo Partners recommended that the company start a sale process as Hirzel Capital took a 6% stake in the company.
TheStreet Ratings Team has a ‘sell’ rating on ARO stock despite the Thursday pop. The team of analysts explained their rating by stating that Aeropostale has weaknesses in several areas “ such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.”
ARO shares are currently selling at $9.01.