Nike shares surge after Bill Ackman's Pershing Square takes a stake
What happened?
Nike Inc. (NYSE: NKE) shares rose in premarket trade on Thursday after Bill Ackman's Pershing Square Capital Management disclosed a new stake in the company.
Pershing Square has been involved with Nike before, making a $100 million profit in just a few months when it cashed out of a passive stake in 2018.
Why does it matter?
The filing shows that Ackman's hedge fund, Pershing Square Capital Management, owned roughly 3.1 million shares of Nike and $68 million worth of its convertible senior notes as of June 30.
Nike's shares have slumped 28% this year, giving Ackman an opportunity to buy in at a discount.
The investment is a sign of confidence in Nike's long-term prospects, which have been dented by supply chain disruptions and rising costs.
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