Kenvue Inc.’s KVUE stock is rising on Monday following reports suggesting activist investor Starboard Value has acquired a stake in the company.
Details: Starboard has acquired a “significant” stake in Kenview and is pushing changes to boost the consumer products company’s stock price, according to the Wall Street Journal. The activist investor argues that even though Kenvue has “some of the best consumer brands,” the company’s stock has lagged its competitors for more than a year.
Kenvue’s iconic brands include Aveeno, BAND-AID Brand, Johnson’s, Listerine, Neutrogena and Tylenol. Kenview stock is up just 7% since the beginning of the year, compared to the S&P 500 index, which is up more than 23%. Rivals Hareon HLN and Procter & Gamble Co. PG are up 21% and 16%, respectively, since the beginning of the year.
The exact size of Starboard’s location in Kenview has not been shared. Although Starboard’s specific restructuring plan has not been reported, sources close to the matter said that Starboard’s CEO, Jeff Smith, will attend the 13D Monitor Active Passive Investor Meeting in New York on Tuesday. He said he plans to further discuss Starboard’s views on Kenvue at the summit.
Another report said Starboard could push the company to sell all or part of its skin, health care and beauty division.
“Given that the SHB sector has been a major area of discussion for the stock over the past year and a half, Starboard is a key focus for management,” JPMorgan analyst Andrea Teixeira said in a note released Monday. We look forward to clarifying the details of the desired changes.” It is conceivable that this division may involve the sale of some or all of the segments. ”
Kenvue was spun out of Johnson & Johnson JNJ last year. The company’s market capitalization now exceeds $41 billion, according to data from Benzinga Pro.
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KVUE Price Trend: At the time of publication, Kenvue stock was up 5.96% to $23.02, according to data from Benzinga Pro.
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