Tylenol Maker Kenvue Stock Surges on Report Starboard Takes ‘Sizable Stake’

Shares of Kenvue (KVUE) took off Monday morning on indications activist investor Starboard Value has taken a large stake in the consumer health products maker.

The Wall Street Journal and Reuters report it’s unclear how big of an investment the hedge fund has made in the maker of Tylenol, Band-Aids, and Listerine.The Journal, which first reported the news, said that Starboard has taken a “sizable stake” and wants the company to make changes to boost its stock price, while Reuters pointed out that the share price has fallen 18% since Kenvue began trading last year after it was spun off of Johnson & Johnson (JNJ).

The Journal noted that Starboard founder and Chief Executive Officer (CEO) Jeff Smith is expected to outline the firm’s plans for Kenvue at tomorrow’s 13D Monitor Active-Passive Investor Summit in New York.

Reuters added that Smith will also speak at the conference about Starboard’s plans for Pfizer (PFE) after it recently made an approximately $1 billion stake in the drug maker.

Investopedia has reached out to both Starboard and Kenvue for comment.

Kenvue shares had been roughly flat year-to-date before rising 6% soon after markets opened Monday.