Why the Myer Holdings Ltd share price rocketed 16% higher today

The Myer Holdings Ltd (ASX:MYR) share price has been on fire on Monday. Is this why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Much to the relief of its long-suffering shareholders, the Myer Holdings Ltd (ASX: MYR) share price is heading in the right direction during trade on Monday.

At the time of writing the department store operator's shares are up a massive 16% to 46.5 cents.

What happened?

With no news out of the retailer or from its major shareholder Premier Investments Limited (ASX: PMV), it is unclear at this stage why its shares are surging higher.

But what is clear to see is that there has suddenly been a significant lift in the volume of shares being traded.

The average daily volume for Myer's shares stands at approximately 4.2 million shares. Whereas today there has already been 10.2 million shares traded at lunch.

It was a similar story during trade on Thursday and Friday. On Thursday 10.1 million shares changed hands and on Friday there were 13.1 million shares traded on market.

Is it a takeover approach?

There has been speculation floating around for a while now that Myer could be a takeover target.

The most likely candidate appears to be Solomon Lew's Premier Investments. The company is already a major shareholder and appears to believe it has a strategy that could reignite the fallen giant.

If Premier Investments has been adding to its shareholding over the last few trading days, it is quite likely that a change of interest notice will have to be submitted to the ASX advising of an increase in its holding.

A notice is required if a major shareholder increases its holding by 1% or more. Considering the first bout of buying appears to have started on Thursday, a notice would have to be submitted today (within two business days) advising of the change.

Should you invest?

I wouldn't recommend investors get caught up in takeover talk. While a takeover would certainly send the share price hurtling skywards, if one doesn't occur then its shares could take a sharp tumble.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »