Bill Ackman Is Piling Into Nike Stock: 3 Things Investors Need to Know

Nike (NYSE: NKE) is the largest U.S. footwear and apparel company by far. The brand has transcended its athletic gear origins and become a label of choice for loyal fans globally. However, that hasn't saved the company from experiencing some serious sales pressures over the past few years. It made a few missteps, and the macroeconomic environment hasn't helped.Hedge fund manager Bill Ackman, who runs Pershing Square Capital and is known for taking activist stances, recently opened a large position in Nike. Ackman focuses on a few stocks, and before he added Nike stock to his portfolio in the second quarter, his portfolio had only seven holdings. As of the end of the third quarter, that figure had risen to 11. And over that time, he boosted his  Nike stake by 436%, bringing it from his smallest position at only 2.2% of the total to a more meaningful 11%.Nike's stock price is down by about 30% year to date, but there are many reasons to believe it can bounce back, which makes this look like a clear opportunity. It trades at the cheap P/E ratio of 22, which could appeal to value investors. If you think you might be interested in following Ackman into Nike, consider these three things before you hit the "buy" button.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool