Why LivePerson Stock Jumped 18% Today
LivePerson (NASDAQ: LPSN) shares trounced the market in early trading on Tuesday. The stock had jumped 18% by 11:15 a.m. ET today compared to a slight decrease in the broader market. The rally erased only a small portion of recent losses investors have seen, though, as shares are still down over 30% so far in 2022.
It was sparked by news that an activist investor has taken a sizable position in the digital communication services specialist, with plans to push for strategic changes.
Starboard Value has accumulated roughly $100 million of LivePerson's stock in the past few days, according to a filing with the Securities and Exchange Commission. That equates to nearly 10% of the company's outstanding share count, which means Starboard can play a key role in shaping management decisions. The company is known for using positions like these to agitate for shareholder-friendly moves, including greater cash returns and increasing profitability.
Source Fool.com
