Activist fund Starboard Value has built a position in Dollar Tree (DLTR) and is urging the company to explore ways to unlock value, including selling its Family Dollar business and raising prices.
The New York hedge fund, which owns 1.7% of Dollar Tree, said Monday it has nominated seven potential directors for the specialty discounter's 12-member board. Starboard is also urging Dollar Tree to explore charging as much as $2 for its products due to rising production costs.
"Looking forward, continuing global trade tensions and potential increases to tariffs will present additional headwinds for Dollar Tree," Starboard Chief Executive Officer Jeff Smith wrote in a letter to Dollar Tree's board.
Smith said he believes Dollar Tree could be worth $150 per share or more if it executes on its proposed changes.
Dollar Tree stock rose 2.3% to 94.99 before the open in Monday's stock market trading. Dollar Tree stock reclaimed its 200-day line last week, but is still near the bottom of an 11-month consolidation.
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The post Starboard To Dollar Tree: Sell Family Dollar, Raise Prices appeared first on Investor's Business Daily.
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