Nielsen Holdings PLC (NYSE: NLSN) is having an overwhelmingly strong start to the trading session this morning, and for good reason. News is breaking that an activist investor has taken a large stake in the company and is pushing for a major change. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The activist investor taking interest in NLSN;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for ahead
NLSN Climbs On Activist Investor Stake
As mentioned above, Nielsen Holdings is having an incredibly strong start to the trading session this morning as news breaks that an activist investor is getting involved. In various reports, we’re seeing news that Elliott Management has taken a large stake in the company. Ultimately, these reports suggest that Elliott has a goal of pushing NLSN to sell itself.
As of today, Elliott holds an 8% stake in the company that’s worth approximately $640 million. According to the reports, multiple private-equity firms have shown interest in NLSN. With the activist investor now involved, this interest could become a deal down the line.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Nielsen Holdings, the news proved to be overwhelmingly positive. After all, if Elliott does succeed with its goal of getting the company to sell itself, the transaction will likely represent a strong return of value for shareholders. So, it comes as no surprise that excited investors are pushing the stock toward the top this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:16), NLSN is trading at $24.95 per share after a gain of $2.98 per share or 13.56% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NLSN. In particular, we’re interested in following the story surrounding the involvement of Elliott and whether or not the company sells itself under the activist pressure. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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