Shares of consumer goods giant Unilever (NYSE: UL) jumped 8.6% on January 24 to close at $53.54, following the news about activist investor Nelson Peltz establishing a stake in the company, according to Reuters.
Furthermore, Unilever may potentially cut thousands of jobs, especially at management positions, across its operations.
Recently, Unilever was in the news for its now-abandoned pursuit of GlaxoSmithKline’s consumer healthcare business for £50 billion ($68 billion).
Peltz’s Hedge Fund Trian Partners Create Stake in Unilever
According to Reuters, Nelson Peltz’s New York-based hedge fund, Trian Partners has taken an unknown stake in Unilever.
Trian Partners is well-known for suggesting operational changes at its portfolio companies. In fact, Peltz had shown interest in another consumer goods company in the past as well.
In 2018, Procter & Gamble (PG) was proposed several changes by Trian Partners in a proxy fight, which lasted several months. Later, Peltz was added to the board of the company, with some of the demands being met by the company.
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 1 Buy and 1 Hold.
Investors Weigh In
According to TipRanks’ Stock Investors tool, investors currently have a Very Positive stance on Unilever, with 12.9% of investors increasing their exposure to UL stock over the past 30 days, at the time of writing.
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