Signet Jewelers May Have Just Lost A Major, Long-Time Shareholder

Corvex Management has sold its 3.459 million shares of Signet Jewelers Ltd. SIG, according to a source familiar with the matter. Stock values plunged after investors learned of the block trade, which sold at $83.75 a share.

Thursday’s news is just the latest in a long history between the two corporations.

In January 2014, Signet announced a “constructive meeting” with Corvex, and the relationship progressed in 2015 when Corvex boosted its stake in the jewelry company to 7.2 percent. In December, Corvex cut its stake from 9.94 percent to 4.97 percent.

Now, it seems the shareholder has pulled out entirely.

Signet’s Bad Luck

The news doesn’t bode well for Signet, which has recently been plagued by poor sales, poor guidance and poor press.

On Wednesday, the company reported a nine-week, same-store sales decrease of 4.6 percent. This followed a more substantial hit taken by Signet throughout the fall when its Kay Jewelers franchise faced allegations of selling fake diamonds.

Shares initially fell 2 percent on spreading rumors, and the value continued to plunge after Benzinga confirmed the report.