Nike Shares Surge as Billionaire Investor Bill Ackman Buys In
Hedge Fund Pershing Square Capital Management Acquires 3 Million Shares
Billionaire investor Bill Ackman has taken a new stake in Nike, Inc. (NKE), according to a recent regulatory filing. The move has sent shares of the sportswear giant climbing in after-hours trading.
Ackman's Stake in Nike
Ackman's hedge fund, Pershing Square Capital Management, disclosed that it had acquired approximately 3 million shares of Nike during the second quarter of 2023. The filing also revealed that Pershing Square owned additional 68 million shares, bringing its total stake to just over 71 million shares.
Market Reaction
Nike shares surged nearly 4% in late trading on Thursday following the disclosure of Ackman's stake. Investors are hopeful that the return of the billionaire investor could spark a turnaround for the company, which has faced challenges in recent months.
Potential Impact of Ackman's Involvement
Ackman is known for his activist investing approach, where he takes large stakes in companies with the goal of influencing their strategic direction. His investment in Nike could signal that he believes the company has potential for growth and value creation.
Nike's Recent Performance
Nike has faced a number of headwinds in recent months, including supply chain disruptions, rising costs, and increased competition. The company's shares have fallen by approximately 25% over the past year.
Ackman's Track Record
Ackman has a track record of successful investments, including his involvement in companies such as Chipotle Mexican Grill (CMG) and Lowe's Companies (LOW). His investment in Nike could be a sign that he sees value in the company's long-term prospects.
Disclaimer
The information provided in this blog post is for informational purposes only and should not be construed as financial advice. Investing in stocks carries risk, and you should always conduct your own research before making any investment decisions.
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