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Qorvo Stock Rises on Upgrade: How an Activist Could Boost Shares by 20%

Wesley ParkWednesday, Jan 22, 2025 11:19 pm ET

3min read

Qorvo Inc. (QRVO) shares jumped 11% on Friday after activist investor Starboard Value disclosed a new stake in the Apple supplier. Here's what investors need to know about the recent developments and the potential impact on Qorvo's stock price.

Starboard Value, a prominent activist investor, has built a 7.7% stake in Qorvo, according to a report from The Wall Street Journal. The activist investor is known for pushing for changes in the companies it invests in to boost shareholder value. Starboard's past investments in companies like NVIDIA and Marvell Technology have seen positive outcomes, indicating their potential to create value.

Qorvo's stock price surged on the news, with shares trading 11.6% higher at $81.86, according to data from Benzinga Pro. The company's stock has struggled in recent months, sliding 22.15% over the past three months. However, the recent surge in Qorvo's stock price suggests that investors are optimistic about the potential impact of Starboard Value's involvement.

Starboard Value's investment in Qorvo comes after the company issued third-quarter guidance that fell below analyst estimates. Qorvo projected adjusted earnings per share between $1.10 and $1.30, versus analyst estimates of $1.92, and revenue between $875 million and $925 million, versus analyst estimates of $1.05 billion. The company is set to release third-quarter earnings on Jan. 28 after the market closes.

Investors should stay up to date on Qorvo analyst ratings and earnings reports to make informed decisions about the company's stock. The recent surge in Qorvo's stock price suggests that investors are optimistic about the potential impact of Starboard Value's involvement. However, it is essential to consider the company's financial performance and the broader market trends when making investment decisions.

In conclusion, Qorvo's stock price surged on Friday following a Wall Street Journal report revealing that activist investor Starboard Value has acquired a 7.7% stake in the company. The Details: The report values the stake at about $500 million. Since the report, Qorvo has filed a Schedule 13D with the Securities and Exchange Commission, confirming the activist investor's investment in the company. Qorvo's stock has struggled in recent months, sliding 22.15% over the past three months. The chipmaker has faced strong competition from competitors such as Broadcom Inc. AVGO. The company's latest investor, Starboard Value, has remained active in the semiconductor sector, with past investments in companies like NVIDIA Corp. NVDA and Marvell Technology Inc. MRVL, highlighting a potential strategic focus that may extend to Qorvo. Qorvo's stock suffered in late October after the company issued third-quarter guidance that fell below analyst estimates. It projected adjusted earnings per share between $1.10 and $1.30, versus analyst estimates of $1.92, and revenue between $875 million and $925 million, versus analyst estimates of $1.05 billion. The company is set to release third-quarter earnings on Jan. 28 after the market closes. Qorvo will host a conference call to review its earnings at 4:30 p.m. EST that same day.

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