NEW YORK (TheStreet) -- Shares of Ann Inc. are gaining by 7.24% to $37.62 in pre-market trading on Friday morning, as speculation circulates that the parent company of the women's clothing and accessories retailers Ann Taylor and Loft has been reaching out to potential buyers regarding a sale. In October, the New York-based company said it would be looking into its strategic options and has been working with JPMorgan Chase & Co. having recently reached out to rival retailers, sources told Bloomberg. Ann has been facing pressure to sell since at least August of this past summer when Engine Capital LP and Red Alder LLC said a buyout of the company could bring in $50 to $55 per share. Exclusive Report: Jim Cramer's Best Stocks for 2015 In March of last year the private equity firm Golden Gate Capital acquired a 9.5% stake in Ann, paying less than $35 per share, Bloomberg noted. In August the firm said it had no intention of buying the company but said it would instead work with Ann "as a long term public investor." The company is said to be speaking with two buyout firms and is also exploring the possibility of selling a stake or preferred shares to the private equity firm PIPE Investment, Bloomberg sources added. Separately, TheStreet Ratings team rates ANN INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate ANN INC (ANN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: The gross profit margin for ANN INC is rather high; currently it is at 56.76%. Regardless of ANN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.61% trails the industry average. ANN, with its decline in revenue, slightly underperformed the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. ANN INC's earnings per share declined by 27.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ANN INC increased its bottom line by earning $2.19 versus $2.10 in the prior year. For the next year, the market is expecting a contraction of 21.5% in earnings ($1.72 versus $2.19). You can view the full analysis from the report here: ANN Ratings Report
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