Qorvo Stock Soars as Starboard Value Takes Stake in Chipmaker
Key Takeaways
Qorvo (
QRVO
) shares jumped 11% Friday when hedge fund Starboard Value made a significant investment in the maker of radio frequency and power semiconductors.
In a regulatory filing, Qorvo reported Starboard held 7.29 million shares of the company, a 7.7% stake. At yesterday’s closing price of $73.59, the ownership is valued at about $536 million.
Qorvo Warned of Business Slowdown Last Quarter
Qorvo has struggled of late. In October, shares plunged 25% to their lowest level since the beginning of the COVID-19 pandemic in 2020 when the firm
posted
a surprising second-quarter loss and warned it faced a continued business slowdown.
At the time,
CFO
Grant Brown explained that changing consumer cellphone buying habits reduced demand. Brown added that the company was “taking appropriate actions, including factory consolidation and operating expense reductions as well as focusing on opportunities that align with our long-term profitability objectives.”
Neither Qorvo nor Starboard Value immediately responded to an
Investopedia
request for comment.
Even with today’s advance, shares of Qorvo are down almost 20% in the past year.
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