Hilton Hotels Corporation Common Stock (NYSE: HLT) is having a great day in the market today, and for good reason. An activist investor recently announced that he took a large stake in the company. With activist investors generally leading to aligning interests between companies and investors, the news led to excitement and the stock is growing legs. Today, we’ll talk about:
- The activist investment;
- what we’re seeing from HLT stock as a result; and
- what we’ll be watching for ahead.
HLT Climbs On Activist Investment
As mentioned above, Hilton is having a strong start to the trading session this morning after an activist investor announced that he took a stake in the company. Recently, stories have been breaking that Bill Ackman’s Pershing Square Capital Management has purchased a 3.7% stake in the hotel operator.
Hilton has been on a strong downtrend as of late. Many investors are concerned about a slowdown in the hotel industry brought about by the trade war that seems to be heating up every day. In fact, before the announcement, the stock was falling below its one year low.
In recent announcements, Pershing Square said it purchased 10.9 million shares of HLT, representing about 13.9$ of the asset value of the fund. The fund also recently announced a $900 million investment in Starbucks.
What We’re Seeing From The Stock
One of the first lesosns that we learn when we start to work in the market is that the news leads to moves. In the case of HLT, the news proved to be overwhelmingly psoitive. After all, investors tend to like activist moves. On top of that, smart money follows big money. So, it comes as no surprise that investors are following Pershing Square’s lead and getting involved in Hilton. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:26), HLT is trading at $67.22 per share after a gain of $3.44 per share or 5.39% thus far today.
Stop wasting your time! Start fidning winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HLT. In particular, we’re interested in following the story surrounding the company’s work to reverse recent movement and alleviate concerns caused by the trade war. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!