On Wednesday, shares of headphone maker Skullcandy Inc. (NASDAQ:SKUL) are surging, up over 16% in afternoon trading after its founder, Rick Alden, has expressed interest in taking the company private.
In a 13D filed by Ptarmagin Capital, LLC, it was revealed that Alden is interested in having all or some of Skullcandy’s shares purchased. If this cannot be accomplished, then Alden would be interesting in taking Skullcandy private. Ptarmagin has a 12.7% stake in the company.
“Given the recent selloff in shares of [Skullcandy], and subsequent sharp discount multiple on the stock, such a transaction could indeed look attractive,” Rommel Dionisio, an analyst at Wunderlich Securities, in a note to clients, according to MarketWatch. Dionsio goes on to say that the possible takeout value for the stock would be in the range of $5.50-$6.50 per share, which is 40%-65% above Tuesday's closing price of $3.93.
SKULLCANDY INC (SKUL): Free Stock Analysis Report
Original post
Zacks Investment Research