Investing.com -- Starbucks gained in afterhours Friday after activist fund Starboard Value took a stake in the coffee chain, the Wall Street journal reported Friday, citing unnamed sources.
Starbucks Corporation (NASDAQ:SBUX) was up 2.7% in afterhours Friday.
The size of Starboard Value's stake couldn’t be determined, according to the report.
Starboard Value reported stake in Starbucks comes just weeks after the WSJ reported in July that Elliot Investment Management had taken a position in the coffee chain and was in talks on ways that the company could boost its share price, which is down 20% year to date.
Elliot Investment Management is eyeing representation on Starbucks’s board, the WSJ said, and may initiate a proxy battle if Starbucks reject its overtures. It is unclear if Starboard Value is also seeking board seats.
The activists are circling and pushing for improvements at Starbucks as the coffee chain sales have taken a hit in key U.S. and China markets.
While the company has said it is evaluating options for its China business, Wedbush said it recent note that visibility "remains very limited."
But there is there is "some level of confidence in management's ability to deliver longer-term annual operating margin expansion and EPS growth in line with the brand's equity," Wedbush added.