Why Pearson Stock Popped Today
Shares of Pearson (NYSE: PSO) have popped today, up by 10% as of 12:45 p.m. EDT, after activist investor Cevian Capital disclosed that it had amassed a 5.4% stake in the company. Activist investors typically agitate for changes that they believe can maximize shareholder value, benefiting other public investors.
In a regulatory filing, Cevian revealed that it had bought over 40.6 million shares throughout June for a total of $266 million, representing 5.4% of total shares outstanding. Cevian believes that the stock represents "an attractive investment opportunity," and the institutional investor plans to "discuss numerous operational and strategic opportunities to maximize shareholder value" with the education company's board of directors.
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Source Fool.com
