Box shares jumped 12.3% Wednesday, the day after activist hedge fund Starboard Value unveiled a 7.5% stake in the file-storage and sharing company.
Starboard is known for turning around Olive Garden’s parent Darden Restaurants, after winning control of the company’s board. In tech Starboard mounted an activist campaign against AOL, prompting the online company to sell a portfolio of patents to Microsoft and return money to shareholders. But the fund’s plans for Box were not immediately clear. Starboard said in a regulatory filing Tuesday that it believed Box’s shares were “undervalued and represented an attractive investment opportunity.” Starboard began buying shares in July, regulatory filings show.
Box’s shares have slid in recent months, falling below its IPO price of $14, before Wednesday’s rally. Despite reporting steady revenue growth, Box has continued to report losses. The company reported earnings last week but Wall Street was disappointed that the company reiterated its full year earnings guidance instead of raising it. In a statement, Box acknowledged Starboard’s stake and said Tuesday it is “committed to maintaining an active and engaged dialogue with stockholders.”