Tripadvisor Inc. (NASDAQ:TRIP) experienced a surge after activist investor Starboard Value acquired a 9% stake in the company.
What Happened: According to a Reuters report, Starboard Value, a prominent hedge fund, has secured a stake of over 9% in the travel services company.
Tripadvisor’s stock closed at $14.99 on Wednesday, marking an 8.07% rise from Tuesday’s close. The stock also recorded 4% rise in premarket trading on Thursday.
Why It Matters: Starboard Value has a history of influencing companies in which it invests. Earlier this year, the hedge fund pushed Becton Dickinson to divest its life sciences unit, a move that significantly impacted the company’s operations.
Given Starboard Value’s track record, its investment in Tripadvisor could potentially lead to strategic changes within the company, further impacting its stock value and market position.
Price Action: Starboard Value’s new stake in Tripadvisor Inc. led to an 8.07% increase in its closing price on July 2, reaching $14.99 according to Benzinga Pro data. The company is up 1.49% year-to-date and down by nearly 15% in the last 12 months.
Benzinga's Edge Stock Rankings: With a high Growth score of 93.60, Tripadvisor shows a strong growth potential, indicating optimism about future earnings or revenue expansion. Click here to know more.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Tero Vesalainen / Shutterstock.com
