Francesca’s Holdings (FRAN) Stock Climbs On New Investor!

Francesca's Holdings FRAN Stock News

Francesca’s Holdings Corp (NASDAQ: FRAN) is flying early on in the trading session with gains of more than 25% so far today. The gains come after an SEC filing showed that the company has won a new institutional investor. Here’s what’s going on:

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FRAN Stock Flies On Cross River Capital Management Investment

Francesca’s Holdings hasn’t issued any news of its own this morning, however, the stock is rocketing due to an SEC filing that was issued. According to the filing, the company has won a new big-money investor!

In the filing Cross River Capital Management disclosed that it has purchased a 20.3% stake in FRAN.  Cross River Capital is a privately owned hedge fund. The fund is known for making investments in micro-cap and small-cap companies.

In fact, Cross River Capital only invests in stocks that have a market cap of $1.5 billion or less at the time of its initial investment. Today’s SEC filing only adds to the institutional interest that we see surrounding this women’s clothing and accessory retailer. In fact, its institutional investors include Arrowstreet Capital, Charles Schwab, BNP Paribas, Barclays Capital, JPMorgan, UBS, Wells Fargo and Vanguard.

Why This News Is Sending The Stock Soaring

At the end of the day, retail investors tend to pay very close attention to moves made by institutional investors. After all, institutional investors make large investments on behalf of a pool of their customers.

As such, these are the experts that spend their entire day looking for opportunities in the market. They know how to analyze stocks and are generally very good at making picks that will see strong gains in value ahead.

Considering this, the fact that Cross River Capital Management purchased such a large chunk of FRAN stock shows that yet another highly-respected institutional investor sees opportunity. Ultimately, this validates the work that the company is doing and the potential for strong gains ahead.

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