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Ackman's Pershing Square Exits Nike Stake, Likely Made $100M Profit

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Ackman's Pershing Square Exits Nike Stake, Likely Made $100M Profit

Nike Inc (NYSE: NKE) shares ticked lower Thursday afternoon following a Dow Jones report that Pershing Square Capital's Bill Ackman sold his high profile stake in the company ahead of third quarter results slated for after the close.

What Happened

Ackman starting buying Nike in October around $52-$53 per share, the same month the company hosted its bi-annual Investor day conference.

"Pershing Square had owned about 5.8 million shares at the end of 2017, it had disclosed, which would mean the bet scored about $100 million in profits," the Dow Jones report said. "The exact size couldn’t be determined given the potential for other trading that wasn’t disclosed."

What's Next

The move comes one week after adidas (AG) (ADR) (OTC: ADDYY) announced it's sustaining its rapid growth rate in North America, as the German sportswear company continues to infringe on Nike’s turf.

It was also revealed that Nike dealing its own management issues, with succession plans for CEO Mark Parker now in the balance after longtime favorite Nike Brand head Trevor Edwards announced an abrupt retirement amid a workplace scandal. It was announced Parker will stay as Nike Chairman and CEO until 2020.

Analysts estimate Nike will report earnings of 53 cents per share on revenue of $8.8 billion.

Related Links:

Nike's Innovation Pipeline Fuels Analyst Optimism, Despite Management Shake-Up

All Eyes On Nike's New Products Ahead Of Q3 Print

Posted-In: Bill Ackman Dow JonesNews Hedge Funds Movers Media Trading Ideas General Best of Benzinga

 

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