Frasers Group secures almost 6 percent stake in Puma

Investors snapped up shares in Adidas and Puma on Thursday. With share price gains of 4.1 percent and 6.9 percent, the two sportswear manufacturers led the list of gainers on the Dax and MDax respectively.

A transaction by British billionaire and investor Michael Ashley provided a boost for Puma. Specifically, it involves the sale of financial instruments, known as short puts, which represent around 5.6 percent of the voting rights in Puma upon maturity. This was disclosed in a voting rights notification.

Since December, the shares have been hovering around the 23 euro mark, with significant fluctuations in both directions at times.

By selling these put options, Ashley grants buyers the right to sell Puma shares to him should they fall below a predetermined price threshold. In return, as the writer of the option, he receives an option premium in advance.

Ashley is reportedly betting that Puma's shares will not lose too much value, or may even rise. According to a stock market expert, he could also be speculating on securing what he considers a favourable entry point into Puma if the share price drops below the agreed put threshold. Through other financial instruments, Ashley is currently credited with 0.17 percent of Puma.

Ashley's Frasers Group is also known as an activist investor, meaning it likes to have a say in the companies it invests in. Frasers Group holds approximately 25 percent in the fashion group Hugo Boss.

Gulden capitalises on share price drop

Meanwhile, Adidas CEO Björn Gulden took advantage of the recent share price drop to make a purchase. The drop had brought the shares to their lowest point since early 2023. According to a voting rights notification, Gulden acquired Adidas shares worth over 500,000 euros on Thursday.

Several analysts lowered their price targets for Adidas following the release of its mid-week business figures. However, their targets remained significantly above the current share price level. UBS expert Robert Krankowski noted that management described the start to the current year as good during the conference call. Adam Cochrane of Deutsche Bank Research affirmed that Adidas has an attractive valuation in view of its profit outlook.

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