Market Overview

Report: Carl Icahn Accumulates Dollar Tree Shares

Report: Carl Icahn Accumulates Dollar Tree Shares

Billionaire investor Carl Icahn established a large stake in struggling Family Dollar in 2014. He pressured the company to seek a buyer and turned a significant profit when it was acquired by Dollar Tree, Inc. (NASDAQ: DLTR) for $8.5 billion.

What Happened

Icahn is now assembling a large stake in Dollar Tree, and the stock subsequently spiked the highest it has traded in eight months, according to a report from New York Post.

The stock was up 7.18 percent at $86.75 at the time of publication Tuesday. 

Why It’s Important

Dollar Tree shares have fallen roughly 11 percent from $92.37 to $81.75 in the past 12 months. Shares of its main competitor Dollar General Corp. (NYSE: DG) have increased 29 percent to $108.18 and got another 3-percent boost on the Icahn news. 

Dollar General has outperformed Dollar Tree as of late and may continue to be a market front-runner. With Icahn’s reputation for pushing executive change upon involvement in mind, it seems as if Dollar Tree could be on the brink of some major alterations.

What’s Next

Despite Dollar Tree’s residual debt from the Family Dollar deal, the company plans to to hire 25,000 associates, according to New York Post.

Related Links:

Carl Icahn Doubles Down On Dell Technologies: 'One Of The Best Opportunities I Have Ever Seen'

3 Reasons To Like Dollar Tree Stores, According To Piper Jaffray

Photo by M.O. Stevens/Wikimedia. 

Posted-In: Activist investors Carl Icahn dollar stores family dollar New York PostMedia General Best of Benzinga


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