Kenvue shares jump as activist investor Starboard buys in

21st Oct 2024 14:09

(Sharecast News) - Shares in American consumer health products group Kenvue were surging on Monday morning on reports that activist investor Starboard Value has amassed a "sizeable stake" in the company.

According to the Wall Street Journal, Starboard wants to boost the share price of Kenvue, which has underperformed the wider sector since the start of 2024.

The report, citing people familiar with the matter, suggested Starboard would push Kenvue's management to "make changes", but did not specify what the investment firm had in mind.

The size of the stake was not disclosed, but Starboard chief executive Jeff Smith is expected to appear at the 13D Monitor Active-Passive Investor Summit in New York on Tuesday and could unveil details there, the WSJ reported.

Tylenol and Aveeno maker Kenvue, the former consumer healthcare arm of Johnson & Johnson that was spun out in 2023, was trading 6.4% higher at $23.11 by 0944 ET.

As of Friday's closing price of $21.72, the stock had barely changed since the start of the year, compared with a 23% gain on the S&P 500.