Macy’s shares surged Wednesday thanks to comments made by an activist investor at a conference.
Jeffrey Smith, who owns an undisclosed amount of the retailer’s stock and is the Starboard Value CEO, said Macy’s shares should be worth over double what they are currently. He said that Macy’s could also operate as two separate companies — one running its real estate holdings, and another operating its retail businesses, CNBC reported.
“We believe there is an opportunity to create two leading companies…while maintaining the dividend,” said Smith.
The market took notice of Smith. Macy’s (M) shares spiked by about 5% directly after his comments were made. As of 1:45pm ET, shares were up by nearly 8% to $72 per share.
Other stocks also saw prices rise thanks to comments made at the Delivering Alpha conference, including Ethan Allen (ETH), which makes furniture.