PETM: PetSmart Stock Soars on Activist Investor Stake

PETM shares were up 12% Thursday evening

   

PETM: PetSmart Stock Soars on Activist Investor Stake

PetSmart (PETM) stock rose sharply on Thursday following news that an activist hedge fund has taken a 9.9% stake in the company.

PetSmart185 PETM: PetSmart Stock Soars on Activist Investor StakeJana Partners said that it took out PETM shares because it felt they were undervalued. Now that it has an almost 10% share in the company, Jana says it plans to meet with the board of directors to discuss several subjects. These subjects include a possible sale of the company, pursuing shareholder friendly policies, improving operating performance and more, reports Wall Street Journal.

PetSmart has responded to the comments made by Jana and says that it welcomes comments from its shareholders.

PetSmart has experienced missed expectations during its first quarter of the year and has also lowered its outlook for the year.The company has come to focus on services, such as grooming, as more Americans look to have their animals taken care of, WSJ notes.

PETM shares were up 12% as of Thursday afternoon.

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