Why Box Stock Spiked Today

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Shares of Box (NYSE: BOX) spiked as much as 17% today after Reuters reported that activist investor Starboard Value is advocating for the company to sell itself. As of 1:15 p.m. EDT, the stock had given back some of those gains and was up 7%.

Starboard Value is disappointed with Box’s share performance in recent years and is now pressuring the company to explore a potential sale, according to the report. The activist institution had accumulated a 7.5% stake in Box in late 2019. A few days after that position was disclosed in regulatory filings, Box and Starboard announced an agreement designed to drive revenue growth and margin expansion. Starboard secured three board seats, and Box formed an operating committee to help improve operating performance.

Image source: Getty Images.

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