Unilever Plc (NYSE: UL), the world’s largest consumer products company, has added activist investor Nelson Peltz to its board of directors. A professional with vast knowledge in the consumer products industry can help the firm grow.
The announcement of the appointment prompted UL shares to climb about 10% in trade on May 31st. On June 1, the stock corrected and closed the day at $46.24.
While Unilever Plc (UL) has a huge number of well-known brands in its portfolio, the firm has struggled for several years and has fallen behind competitors in terms of growth. The corporation attempted a number of modifications in recent quarters, but not all of them were well received by investors.
Unilever’s plan to undertake an acquisition, for example, was accompanied by a dramatic drop in quotes. Following the management’s decision to forego the acquisition, the stock soared in value once more.
Nelson Peltz, the new member of the board of directors, is expected to bring good improvements to the firm, according to investors and management. The expert has vast expertise, having previously worked for Procter & Gamble, a rival of Unilever Plc (UL).
Despite the impact of inflation, the firm is now achieving double-digit organic growth, thanks in large part to Pelzer’s efforts. Some investors are likely to feel Peltz can have a similar favorable influence on Unilever.
On June 1st, the company’s shares were last trading -4.32 percent down at $46.24. Prices ranged between $46.05 and $47.365 during the most recent trading session. The stock is now trading 34.08 percent below its target price of $62.00. The company’s current market capitalization is $117.62 billion.