The shares of Dollar Tree rose more than 6% in premarket trading on Monday, following a report from a major news wire that activist investor Mantle Ridge has a $1.8 billion investment in the retailer and wants to press the retailer to act to increase its share price.
According to data, a position the size of Mantle Ridge's would amount to more than 5% of the company's shares, making Mantle Ridge one of the company's top two investors. At Friday's close, Dollar Tree had a market capitalization of more than $25 billion.
The stock has risen 19% in a year, compared to a 31% increase in the S&P 500. As inflation took hold, the company's margins were squeezed, putting its core strategy of stocking and selling most things for under $1 to the test. More products have had to be shifted to sell at a higher price.
According to a story from a major newswire, Mantle Ridge could opt to nominate directors to the company's board of directors when the one-month deadline for doing so opens on November 24.