Nike Inc 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) 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
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
