Atkore International Group (ATKR) stock experienced a delayed rally on Thursday after the manufacturer and seller of electrical, safety, and infrastructure products announced a business sale. The company revealed yesterday that it will sell its High-Density Polyethylene pipe and conduit business to Infra Pipes, a North American-based polyethylene pipeline solutions company.
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Atkore International Group said that the deal will see it contribute its High-Density Polyethylene business and capitalize it with $28 million. The company will also retain a 10% equity stake in the combined company. Atkore International Group expects the deal to result in several tax benefits.
Bill Waltz, president and CEO of Atkore International Group, said, “Infra Pipes is a market leader and a strong fit for our HDPE business, and we look forward to building a strong relationship for the future as a minority owner in the new larger entity.”
Atkore International Group Stock Movement Today
Atkore International Group stock was up 10.46% in pre-market trading on Thursday, following a 3.36% rally yesterday. The stock has also increased 4.73% year-to-date and 16.24% over the past 12 months.
Despite the deal with Infra Pipes, shares of ATKR stock have not seen much trading activity today. However, some 417,000 shares changed hands yesterday, which was above the company’s three-month average daily trading volume of about 308,000 shares.
Is Atkore International Group Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Atkore International Group is Hold, based on one Buy and three Hold ratings over the past three months. With that comes an average ATKR stock price target of $72.33, representing a potential 9.74% upside for the shares.
