Sears Witnesses A Rise In Shares After Rumor About Merger With REIT

The retail store owners have experienced a rise in share value after the acquisition news got out.

In the most recent Sears Holdings News Update, what became evident was that the company has made an announcement in a recent press release in which it has disclosed the name of a new firm called Seritage Growth Properties which has huge plans for acquisitions. According to the most recently available data, it has become clear that this new company will be taking over a massive 254 stores of Sears, all in one go. This has come as a huge surprise to the investors and financial analysts but it has also been taken as pleasant news as the multinational retail store has been in a dire need for some help regarding the finances.

According to analysts, this new acquisition plan is expected to raise the fallen standard of the Sears retail stores. One of the main reasons why analysts came up with this analysis was that the shares of the multinational company experienced a huge rise in share value in which an increase of 11% was recorded on the stock index.

After the most recent trading session, Sears enjoyed a rise of 3.5% in the share price which showed that this new plans for a takeover by a new company might turn out to be in the favor of the Chicago-based company. According to analysts who are making coverage on the stock of the company are of the opinion that since the fall in the share value of the retail store firm, it has been finding it hard to regain its position in the financial market which has raised many concerned eyebrows of the investors over the period of time.

Therefore, the fact that Sears stores will be soon taken over by REIT has been welcomed warmly by analysts and investors alike. As the retail store giant falling stature in the financial market has made it clear that the company is in a bad position and any way through which the company can welcome cash will not be ignored.

After the selling of the Sears closing stores takes place, the company will be receiving a massive $2.5 billion with which the retail stores owners can make further plans to bring about positive changes in the management as well as the future endeavors of the company. Analysts believe that through this selling procedure, the firm will get a chance to fix a lot of the problems that have been troubling the retail company for quite some time.

Sears Holdings Shares Sold By Major Shareholder

Shares of Sears Holdings were sold by major shareholder Bruce Berkowitz in which he sold 41,700 shares valued up to $1,522,004.

In the most recent trading session, that the multinational company went through, Sears Holdings recorded the sale of 41,200 shares by one of the biggest shareholders of the company called Bruce Berkowitz. This transaction was recorded on Monday, 16th March 2015 in stock chart of the company in which Berkowitz was seen to sell shares at a price of $37.67 at an average. The transaction that was made resulted in the generation of $1,552,004. After the transaction was successfully carried out by the shareholder, he then became the owner of 71,700 shares of the company. His share in the company is valued at $2,700,939. This transaction has been submitted to the SEC as shareholders that own more than 10% of the companies are bound to report to the Securities Exchange Commission regarding any kind of trade that they undergo within the company’s stock index.

On Monday, 16th March 2015, Sears Holdings stock price was seen to experience a rise in trade by 0.68% which helped the share price reach $38.47. On the same trading session, the shares of the company have an average volume of 465,947 shares. The multinational company’s one-year high has been recorded at a price of $48.25 whereas, on the other hand, the one-year low of the company has been recorded at $22.45. Sear Holdings has a total market value which has been recorded by the stock exchange at $4.10 billion.

The stock quote of the Hoffman-based company disclosed that the earnings for the last quarter of 2014 were presented on Thursday, 26th February 2015 in which the company was seen to record earnings per share at $1.50. The financial analysts previously predicted that the company will report an EPS of $1.89, but a decline in the quarterly results was seen by the company. On the other hand, the company managed to raise revenue of $8.10 billion in the same quarter which was also $0.20 billion less than the estimated earnings.

However, the company witnessed an increase in quarterly earnings on a year-over-year basis as in the fourth quarter of 2013; Sears had recorded an EPS of $1.13. Nevertheless, the company’s earnings for the quarter saw a decline by 23.5% as compared to the same quarter earnings of 2013.

For the current year, analysts have predicted that Sears Holdings will post even lower EPS than the previous two years. The guidance that has been provided for the current financial year is that the company will only manage to make $9.96 EPS, which is much lower than what the company has been previously generating since it was founded.