Shares in Nick Scali Limited (ASX: NCK) are trading 3.5% higher today at $13.92 apiece.
The furniture retailer's shares started the day well, before reversing course. They bottomed hard at $13.37, then spiked back up to current levels.
Investors are reacting well to a company announcement quelling rumours that the founding family is set to sell some shares. Let's take a quick look.
What did Nick Scali announce today?
The company has strenuously denied rumours in yesterday's The Australian referring to a potential share sale by the Scali family.
Another report in today's The Australian notes that "brokers were said to be shopping a stake in furniture retailer Nick Scali on Monday held by the Scali family, but the deal stalled as the share price fell".
In a brief statement today, the company said:
Nick Scali Limited refers to recent press speculation in The Australian on 8 February 2022 relating to a potential sale of shares in the Company by the Scali family.
The Board has been informed by the Scali family and Scali Consolidated Pty Ltd that this speculation is unfounded and the entity does not have any intention to sell shares in the Company at the current time".
News of the Scali family holding their stake was received well today, with the Nick Scali share price firmly up.
Prior to today's gains, the Nick Scali share price has been struggling. It has whipsawed down from a 52-week high of $16.30 in November to near 3-month lows today. See the chart below (RHS).
Nick Scali share price summary
In the past 12 months, the Nick Scali share price has gained almost 21%.
However, in 2022 the shares have faltered by 10% — twice as much as the S&P/ASX 200 Index (ASX: XJO).
