Bill Ackman's Pershing Square dumps stake in Lowe's, keeps Google

By Joy Wiltermuth

Home-improvement retailers are in the spotlight as mortgage rates stay high

Hedge-fund manager Bill Ackman's Pershing Square Capital Management liquidated its shares of Lowe's Cos. in the first quarter, according to a regulatory filing Wednesday.

Pershing Square previously owned about 1.2 million shares in the home-improvement retailer, valued around $277.2 million as of mid-February.

Lowe's (LOW), which is due to report earnings next week, has been in the spotlight as 30-year fixed mortgage rates above 7% have kept a lid on U.S. home sales. Many homeowners with low-rate, pandemic-era mortgages have opted to sit tight, rather than look to upgrade or sell their existing residences, even though property prices keep climbing nationally.

Rival chain Home Depot Inc. (HD) beat first-quarter profit estimates this week while sales declined, but by less than expected, in part on weaker spending on larger discretionary projects.

Related: Freddie Mac wants a new role financing homeowners sitting on equity. One banking group isn't happy.

Pershing's other equity holdings remained steady on a quarterly basis, including its large stake in Google-parent Alphabet Inc. (GOOG) (GOOGL), fast-food conglomerate Restaurant Brands International Inc. (QSR) and Chipotle Mexican Grill Inc. (CMG), as well as Hilton Worldwide Holdings Inc. (HLT), regulatory filings show.

Pershing didn't immediately respond to a request for comment.

-Joy Wiltermuth

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05-15-24 1901ET

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