Nissan Shares Rally on Activist Investor Effissimo’s Investment

Shares of Japan-based Nissan Motor Co. (JP:7201) rallied on Tuesday after a filing revealed that activist investor Effissimo Capital Management has invested in the carmaker. As a result, Nissan shares surged by as much as 21% and ended the day with a 13% gain. The news provided some relief to investors after the stock dropped sharply last week when the company reduced its annual operating profit forecast by 70%.

Nissan Motor is a global automobile manufacturer, offering a wide range of cars, trucks, and electric vehicles. Meanwhile, Effissimo Capital Management is an activist investor based in Singapore.  

Effissimo Buys Stake in Nissan

According to Nissan’s SEC filing, ECM Master Fund now owns a 2.5% stake in the company, as of the end of September. The SEC filing also stated that the ECM Master Fund is registered in the Cayman Islands and is linked to Effissimo.

Following the investment, Nissan thanked both current and new shareholders for their support and confidence in the company’s future.

This move also indicates that shareholder activism is growing in Japan, with local and global investors urging companies to improve management and corporate governance. Moreover, these movements are backed by guidance from regulators.

Nissan Reports First-Half Results

Last week, Nissan reported its half-year results for FY24, highlighting challenges in the U.S. and China. In response, the company unveiled a restructuring plan targeting a ¥300 billion reduction in fixed costs and ¥100 billion in variable costs.

The plan includes cutting approximately 9,000 jobs and reducing its manufacturing capacity.

Is Nissan Stock a Good Buy?

On TipRanks, 7201 stock has been assigned a Moderate Sell rating based on three Sells and one Hold recommendation. The Nissan share price target is ¥375.40, which is 2% above the current level.

See more 7201 analyst ratings.

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