Shares of Forward Air Corp.
FWRD,
were driven up 4.8% in morning trading Tuesday, after activist investor Ancora Alternatives LLC said it believes the less-than-truckload and freight services company value could nearly double if shareholders take action. Ancora, which said it is a “top 5” shareholder of Forward Air, said the stock can trade “north of $100” over the next six months, if shareholders vote down the cash-and-stock deal to buy Omni Logistics LLC announced on Aug. 10, then vote to replace the board of directors and management team. And over the intermediate term, those actions can lift the stock to the $140 to $145 range, which is about 80% to 86% above current levels. The stock had plunged 42.4% amid a six-day losing streak after the Omni deal was announced. Stifel had downgraded Forward’s stock to hold from buy in the deal-announcement’s wake, saying the deal price was “substantial” and included “material equity dilution,” and included “sizable” execution risks. The stock has tumbled 25.7% year to date, while the Dow Jones Transportation Average
DJT,
has climbed 13.4% and the Dow Jones Industrial Average
DJIA,
has tacked on 2.8%.
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