Tripadvisor Inc. ( TRIP ) experienced a surge after activist investor Starboard Value acquired a 9% stake in the company.

What Happened: According to a Reuters report, Starboard Value, a prominent hedge fund, has secured a stake of over 9% in the travel services company.

Tripadvisor’s stock closed at $14.99 on Wednesday, marking an 8.07% rise from Tuesday’s close. The stock also recorded 4% rise in premarket trading on Thursday.

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Why It Matters: Starboard Value has a history of influencing companies in which it invests. Earlier this year, the hedge fund pushed Becton Dickinson to divest its life sciences unit, a move that significantly impacted the company’s operations.

Given Starboard Value’s track record, its investment in Tripadvisor ( TRIP ) could potentially lead to strategic changes within the company, further impacting its stock value and market position.

Price Action: Starboard Value’s new stake in Tripadvisor Inc. ( TRIP ) led to an 8.07% increase in its closing price on July 2, reaching $14.99 according to Benzinga Pro data. The company is up 1.49% year-to-date and down by nearly 15% in the last 12 months.

Benzinga's Edge Stock Rankings: With a high Growth score of 93.60, Tripadvisor ( TRIP ) shows a strong growth potential, indicating optimism about future earnings or revenue expansion. Click here to know more.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.