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Why is Skullcandy (SKUL) Stock Surging Today?


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On Wednesday, shares of headphone maker Skullcandy Inc. SKUL are surging, up over 16% in afternoon trading after its founder, Rick Alden, has expressed interest in taking the company private.

In a 13D filed by Ptarmagin Capital, LLC, it was revealed that Alden is interested in having all or some of Skullcandy's shares purchased. If this cannot be accomplished, then Alden would be interesting in taking Skullcandy private. Ptarmagin has a 12.7% stake in the company.

"Given the recent selloff in shares of [Skullcandy], and subsequent sharp discount multiple on the stock, such a transaction could indeed look attractive," Rommel Dionisio, an analyst at Wunderlich Securities, in a note to clients, according to  MarketWatch . Dionsio goes on to say that the possible takeout value for the stock would be in the range of $5.50-$6.50 per share, which is 40%-65% above Tuesday's closing price of $3.93.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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