Academy Sports & Outdoors shares fall after JPMorgan block trade: sources

FILE PHOTO: The logo of Dow Jones Industrial Average stock market index listed company JPMorgan Chase (JPM) is seen in Los Angeles, California, United States, in this October 12, 2010 file photo. JPMorgan Chase & Co. owns Chase Commerical Bank and JPMorgan Investment Bank. REUTERS/Lucy Nicholson/File Photo/File Photo

(Reuters) – Shares of retailer Academy Sports & Outdoors Inc were down 5.9% on Thursday afternoon, with sources citing a large trade in the stock hitting the market.

JPMorgan put 9 million shares of Academy Sports on the market at a $28.80 price on Wednesday after the close, according to capital markets sources familiar with the transaction. The block trade price represented a 6.4% discount to stock’s close on Wednesday.

The stock, which hit a record high of $33.74 earlier this month, last traded at $28.97.

While the sources did not identify the seller, private equity firm KKR & Co Inc owns at least that many shares, according to public filings with regulators.

KKR & Co did not immediately respond to a request for comment.

After ending 2020 with 61.6 million shares or 67.7% of Academy Sports’ shares outstanding, KKR sold about 12 million shares in a late January secondary offering priced at $21.50, cutting its ASO stake to about 55% or roughly 49.6 million shares.

The next-biggest Academy Sports shareholders are Fidelity Management with about 3 million shares, Samlyn Capital with about 2 million shares and Tiger Global Management with 1.75 million, according to Refinitiv.

A 9 million-share block represents about a week’s worth of trading volume based on the 30-day moving average and roughly a third of ASO’s free float, which is about 28 million shares, according to Refinitiv.

ASO’s stock had surged 48% year-to-date through Wednesday’s close and was 137% above the October IPO price of $13 after KKR took it public.

Source: Read Full Article