Bill Ackman Aims For Big Stake In Howard Hughes $HHC Stock

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Bill Ackman has begun a cash tender offer to purchase up to an aggregate of 6,340,000 shares of common stock of The Howard Hughes Corporation.

Pershing Square commences tender offer for up to 6.34M shares of Howard Hughes

On October 14, 2022, Pershing Square Capital Management announced that Pershing Square, L.P., Pershing Square International, Ltd. and Pershing Square Holdings, Ltd. have begun a cash tender offer to purchase up to an aggregate of 6,340,000 shares of common stock of The Howard Hughes Corporation at a price not greater than $60.00 nor less than $52.25 per common share, net to the seller in cash, less any applicable withholding taxes and without interest.

“The exact price will be determined through a modified Dutch auction described in the offering materials referred to below. If the Purchasers accept any common shares for purchase pursuant to the offer, PS, PS International and PSH will purchase approximately 7.47%, 2.27% and 90.26%, respectively, of those common shares and their purchase obligation will be several in accordance with those percentages and not joint. The offer is being made on the terms and subject to the conditions set forth in the offer to purchase and the letter of transmittal, each dated as of October 14, 2022. The Purchasers are making this offer because they believe the company’s current stock price is below the company’s long-term intrinsic value per share. The offer is scheduled to expire at 12:00 Midnight, New York City time, at the end of November 10, 2022, unless the offer is extended or earlier terminated. Any extension of the offer will be announced publicly on the first business day after the expiration date. The offer is subject to customary closing conditions. There is no financing condition to the offer,” Pershing Square stated.

Dark Pool Sell Order From January 2022

An $11 million dark pool order occurred in Howard Huges $HHC stock back on January 31, 2022. We think the dark pool trade was a sell order because of how $HHC stock ultimately fell a couple of months after the trade hit the tape.

Howard Hughes stock chart on October 16, 2022, with a dark pool trade from January 31, 2022, shown in orange bar overlay.

Make sure to review this lesson on dark pool trading so that you understand the chart above.

Did Bill Ackman reason that since no institutional investor selling has occurred over dark pools in the last 10 months, the stock might be near a bottom?

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Howard Hughes price target lowered to $81 from $100 at Piper Sandler

On October 7, 2022, Piper Sandler analyst Alexander Goldfarb lowered the firm’s price target on Howard Hughes to $81 from $100 and kept an overweight rating on the shares. The analyst again reduced price targets across real estate given the continued rising risk premiums.

Opening of Tin Building In New York City

On September 29, 2022, The Howard Hughes Corporation (NYSE: HHC) and Chef Jean-Georges Vongerichten celebrated the opening yesterday of the Tin Building by Jean-Georges—a 53,000-square-foot culinary marketplace at Pier 17 at the Seaport on the site of the former Fulton Fish Market—which features an extensive offering of international food experiences at an iconic New York City waterfront location.

The opening of the reconstructed Tin Building at its historic Seaport location marks a major milestone in the revitalization of the Lower Manhattan neighborhood and creates a destination unlike any other in the city. The expansive new marketplace—with every product and menu item personally curated by acclaimed chef Jean-Georges—reinforces the Seaport’s reputation as New York City’s new culinary epicenter. With two levels offering over 20 new restaurants, bars, grocery markets, retail, and private dining experiences all under one roof, the highly anticipated new Tin Building is the largest culinary experience to open in Lower Manhattan in recent years, bringing over 700 new jobs to the community and driving significant economic benefit to the area.

“New York City and our central business districts are coming back, thanks in part to creative new projects like this one,” said New York City Mayor Eric Adams. “A true culinary destination, the reconstructed Tin Building combines so many of the ingredients we need to revitalize Lower Manhattan, and offers wide-ranging and high-quality offerings, especially from a chef who appreciates plant-based food. The Tin Building will not only create jobs, but also attract New Yorkers and tourists—helping to keep this neighborhood vibrant for years to come. I applaud all of the partners for reimagining this site in a way that honors its history, while helping to bring this neighborhood into a new era.”

The Tin Building by Jean-Georges is the first project completed by The Howard Hughes Corporation and Jean-Georges since HHC acquired a minority stake in the celebrated global restauranteur’s company earlier this year.

“With the opening of the Tin Building by Jean-Georges, The Howard Hughes Corporation brings our commitment to creating best-in-class customer experiences to a uniquely immersive culinary destination at the Seaport,” said David R. O’Reilly, Chief Executive Officer of The Howard Hughes Corporation. “As we continue to work in close partnership with Chef Jean-Georges, we are excited for the many opportunities ahead for the expansion of Jean-Georges Restaurants across our national portfolio that will continue to set the standard for hospitality today.”

“The market at the Seaport was one of the first places I visited when I first came to New York City in 1985, and it has continued to be a consistent part of my culinary inspiration ever since,” said Chef Jean-Georges Vongerichten. “It has been a great privilege to have this opportunity to bring back the Tin Building and reinvent such an iconic New York staple in a new and authentic way—honoring and inspired by the Seaport’s rich history and continuing the legacy of providing a one-of-a-kind experience that pays tribute to the global influences found in New York City.”

The Howard Hughes Stock Technical Analysis

The Howard Hughes $HHC stock is in a technical strong downtrend. Long-term indicators suggest a continuation of the downtrend. The key resistance price level that traders are watching is at $64.94. A confirmed break above this key pivot level would upgrade the stock trend.

The Howard Hughes stock chart in a downtrend channel with a neutral MACD and a positive money flow as of October 16, 2022.
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