Tripadvisor Inc (NASDAQ:TRIP) shares added more than 16% after activist investor Starboard disclosed it has taken a 9% stake in the company, valued at about $160 million.
Per a regulatory filing with the Securities and Exchange Commission, Starboard believes TripAdvisor's stock “were undervalued and represented an attractive investment opportunity.”
The firm expressed intentions to engage with TripAdvisor's management and board to explore opportunities for value creation.
Potential actions include discussions on improving financial and operational performance, changes in board composition, and other strategic moves.
TripAdvisor has not commented on the news.
Shares of TripAdvisor were up 16.6% at about $17 on Thursday morning. The stock has performed strongly in the year to date, adding more than 18%.