Monro (MNRO) stock closed more than 15% higher on Nov. 5 after legendary activist investor Carl Icahn increased his stake in the automotive services company by another $9.7 million.
Icahn now owns approximately 4.4 million shares of the company in total, making him MNRO’s largest shareholder, a position previously held by BlackRock Fund Advisors.
Despite a massive move higher on Wednesday, Monro stock is still down more than 25% so far this year.
Icahn’s involvement is largely bullish for MNRO stock as it signals strategic changes and value creation opportunities that may be on the horizon.
Their substantial stake validates the Nasdaq-listed company’s turnaround potential and provides assurance that the oversight of experienced activists will likely drive performance improvements.
Carl Icahn has previously led successful activist campaigns at big-name names like Herbalife (HLF) and eBay (EBAY). He is even credited with unlocking notable shareholder value in giants like Netflix (NFLX) and Apple (AAPL).
Monro’s better-than-expected earnings in its last reported quarter offer another notable incentive for investors to follow in Icahn’s footsteps.
Monro shares are worth owning on the Icahn news, as they are currently trading at an attractive price-to-sales (P/S) multiple of just 0.38x.
Today’s rally has also taken MNRO stock well above its 200-day moving average (MA), further indicating the bullish momentum ahead.
Meanwhile, options traders are also pricing in the continued rise in the company’s share price to around $20.50 through January 16. Historically, Monro has returned an average of 5.54% in November and another 1.60% in December.
Finally, the automotive aftermarket continues to demonstrate remarkable resilience despite broader economic headwinds that strengthen the case for owning MNRO heading into 2026.
Wall Street analysts aren’t entirely bearish on Monro stock either.
According to Barchart, the consensus rating on MNRO stock currently sits only at “Hold,” but price targets range as high as $19, indicating 7% upside potential from here.
