TCS - Why The Container Store Stock Jumped as Much as 16% This Week
Shares of The Container Store (NYSE: TCS) , a retailer of home goods tied largely to storage, rose sharply on the first trading day of 2021 and were higher by as much as 16% at one point during the week according to data from S&P Global Market Intelligence . That said, it gave back some of the advance to start Friday, Jan. 7, up a still impressive 13.5% or so. The big news was an acquisition.
Normally when a company announces that it is buying another company the acquirer's shares fall, as it has to come up with the funds to seal the deal. That obviously wasn't the case here, with The Container Store's shares advancing after the premarket announcement on Jan. 3, the first trading day of the new year, that it was spending $21.5 million to buy Closet Works. That company makes wood-based closet organization systems.
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Why The Container Store Stock Jumped as Much as 16% This Week