Tiffany Stock Drops as Takeover Talks Dissipate

Various concerns have popped up for LVMH regarding the deal

Deputy Editor
Jun 3, 2020 at 11:32 AM
facebook X logo linkedin


The shares of Tiffany & Co (NYSE:TIF) are down 1.1% at $115.73, after reports that the $16.2 billion takeover of the jewelry brand by French luxury group Louis Vuitton SE (LVMH), is looking less certain. LVMH's board is concerned about a deteriorating situation in the U.S. market as well as Tiffany & Co's debt. However, Credit Suisse noted that it would be short-sighted for LVMH to avoid the deal, and would make its dealings less credible in the future. Looking ahead, the jewelry name is scheduled to report earnings a week from today on Wednesday, June 10, before the open.

Trading sideways since late March above $125 region, yesterday's drop of around 9% put TIF back below the $120 mark for the first time since mid-March. From a wider perspective, the equity is down 12.9% year-to-date. 

Analysts are hesitant in the options pits, with all fifteen in coverage sporting a tepid "hold" rating. Meanwhile, short interest has fallen 10.5% in the last two reporting periods, now making up 10.44 million shares. This accounts for 8.7% of the stock's total available float and would take a little over three days for shorts to cover, at TIF's average pace of trading.

 

 

*SPONSORED CONTENT*

How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.

*SPONSORED CONTENT*