Workday Inc (NASDAQ:WDAY) shares gained 9% to about $238 in early trading on Wednesday after activist investor Elliott Investment Management revealed that it has purchased a more than $2 billion ownership interest in the human resources software provider.
Instead of calling for major changes in the company, Elliott instead praised the leadership of Workday.
“We believe CEO Carl Eschenbach, CFO Zane Rowe and the entire Workday team have made substantial progress in recent years, positioning Workday as a unique software franchise with industry-leading growth potential, best-in-class customer retention and a proven management team," Elliott Investment Management wrote in a statement.
“We believe this multi-year plan (announced at the company's Financial Analyst Day) will drive substantial long-term value creation for Workday shareholders, and we look forward to continued collaboration with the company."
Workday shares have fallen about 6% year to date.