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Key Takeaways
- Hewlett Packard Enterprise shares surged Tuesday after Bloomberg reported activist investor Elliott Investment Management built a $1.5 billion stake in the server maker.
- Elliott will look to engage with the company's leadership on ways to maximize value, people familiar with the matter told Investopedia.
- HP Enterprise announced that it would layoff workers after predicting lower profits for the current year and quarter than analysts expected.
Hewlett Packard Enterprise shares (HPE) surged after Bloomberg reported that activist investor Elliott Investment Management had built up a stake of more than $1.5 Billion in the server manufacturer.
Elliott will look to engage with HP Enterprise's leadership on ways to maximize the company's value, people familiar with the matter told Investopedia. HP Enterprise declined to make any comment.
HP Enterprise reported its latest quarterly results last month. While revenue surpassed expectations, adjusted profits and projections for second quarters and the full fiscal year came in lower than expected. The tech company said it would cut costs and layoff about 5% its workforce in the next 18-months.
Elliott also built stakes in Southwest Airlines BP, and Phillips
Elliott recently made an impact by securing several of its nominees on Southwest Airlines’ board. This was done late last year. Elliott has reportedly made investments in oil companies BP and Phillips 66 this year. It has also invested in the technology sector in the past with Salesforce (CRM).
HP Enterprise shares have risen over 4% recently, but are still down around 30% since the start the year.
