Adidas AG (ETR:ADS) has made a major announcement and it is sending shares of stock soaring in trading today. The company announced today that they have hired the head of consumer products at Henkel, Kasper Rorsted, to be their new Chief Executive Officer (CEO).
Rorsted will take over for current CEO, Herbert Hainer starting on October 1, 2016 but will join the company in August to help in a smooth transition. Shares of Adidas AG (ETR:ADS) originally jumped 11% prior to falling slightly, but remain up significantly today. Hainer leaves the company after running it for over 14 years. He had faced a lot of pressure from shareholders over the past year to year and a half, due to poor company performance.
“Given Rorsted’s success at Henkel, we are sure there was—or would have been—no shortage of offers open to him, so the news of that he is to become Adidas CEO is somewhat of a surprise given Adidas is half the size of Henkel,” explained Bernstein analyst Andrew Wood.
The stock is up 7.13% or EUR 5.99 following the news, hitting EUR 90 per share. About 3.14M shares traded hands or up 226.07% from the average. ADS has declined 16.67% since June 12, 2015 and is currently downtrending. It has underperformed the S&P500 by 7.80%.
From a total of 16 analysts covering adidas (ETR:ADS) stock, 5 rate it a “Buy”, 2 a “Sell”, and 9 a “Hold”. This means that 31% of the ratings are positive. The highest target price is €110 while the lowest target price is €70. The mean of all analyst targets is €88.13 which is -2.08% below today’s (€90) stock price. adidas was the topic of 38 analyst reports since June 23, 2015 according to the firm StockzIntelligence Inc. Independent Research upgraded shares on January 6 to a “Buy” rating. Credit Suisse downgraded shares to a”Underperform” rating and a €80 target share price in their report from a December 11. Commerzbank maintained ADS stock in a recent report from January 5 with a “Hold” rating. Bankhaus Lampe maintained the rating on December 11. Bankhaus Lampe has a “Hold” rating and a €88 price target on shares. Finally, Citigroup maintained the stock with a “Neutral” rating in a report they issued on a December 16.
The institutional sentiment increased to 1.09 in Q2 2015. It’s up 0.26, from 0.83 in 2015Q2. The ratio improved, as 52 funds sold all their adidas AG shares they owned while 164 reduced their positions. 62 funds bought stakes while 173 increased their total positions. Institutions now own 67.81 million shares which is 17.07% more than the previous share count of 57.93 million in 2015Q2.
Cryder Capital Partners Llp holds 11.22% of its total portfolio in adidas AG, equating to 67,054 shares. Smith Thomas W owns 47,950 shares representing 10.49% of their total US portfolio. Moreover, Muhlenkamp & Co Inc has 9.22% of their total portfolio invested in the company, equating to 121,235 shares. The United Kingdom-based Amiya Capital Llp has a total of 6.11% of their portfolio invested in the stock. Prescott General Partners Llc, a Florida-based fund reported 282,370 shares owned.
Since April 22, 2015, the stock had 0 insider buys, and 1 insider sale for a total of $339,456 in net activity. Ballou Roger H sold 1,250 shares worth $339,456. Anderson Bruce K sold 835 shares worth $249,665. Pearson Bryan A sold 4,000 shares worth $1.24M. Santillan Laura sold 3,706 shares worth $1.15M. The insider Epperson Leigh Ann K sold 1,168 shares worth $350,435.
adidas AG designs, develops, produces and markets a range of athletic and sports lifestyle products. The company has a market cap of 18.83 billion EUR.