Maybe they just want a new office chair, but one hedge fund is keeping an eye on furniture retailer Ethan Allen.
Tom Sandell of activist hedge fund Sandell Asset Management told institutional investors that Ethan Allen could be worth $37 a share if acquired by a private equity firm, reports Furniture Today. The stock could even hit $40 a share if its real estate holdings were split off into a real estate investment trust, says Sandell.
Ethan Allen closed at $30.24 a share Wednesday, a 1.58% gain for the day after Sandell’s announcement. The furniture company says it had a rise in retail sales last quarter, but final numbers haven’t been released yet.
Photo: Guy Dickinson