Kenvue Inc (NYSE:KVUE) shares moved more than 6% higher on reports activist investor Starboard Value has taken a stake in the consumer goods company and is eyeing changes.
A person familiar with the matter told the Wall Street Journal that Starboard’s stake in the Tylenol-maker is “sizeable.”
The source said the activist believes Kenvue holds top consumer brands but its shares have underperformed the broader market.
As of last week, Kenvue is up just 1% in 2024 compared to a 23% gain for the S&P 500.
Starboard has not disclosed its interest in Kenvue, which was spun out of Johnson & Johnson (NYSE:JNJ) last year.
Starboard and Kenvue have both declined requests for comments.
Shares of Kenvue added 6.2% at about $23 in the early afternoon on Monday.