Starboard Value Acquires Stake in Kenvue, Pushes for Stock Price Boost

Starboard Value’s Investment in Kenvue Inc.

Activist hedge fund Starboard Value has taken a "sizeable" stake in Kenvue Inc., according to *The Wall Street Journal*. While the exact percentage of the investment is undisclosed, Starboard is pushing for changes aimed at boosting Kenvue's stock price. Kenvue, which was spun off from Johnson & Johnson in 2023, has seen its stock underperform both its industry peers and the broader market since its debut.

Kenvue’s Strong Consumer Brands

Kenvue boasts several well-known consumer brands, such as Tylenol, Listerine, and Band-Aid. Despite its strong portfolio, Kenvue's stock performance has been relatively muted in 2024, while the S&P 500 has surged by 24%. Starboard believes that these valuable brands are not yet reflected in the company’s current valuation.

Starboard’s Broader Strategy

This is not the first major move by Starboard Value. The hedge fund, led by CEO Jeff Smith, recently acquired a $1 billion stake in pharmaceutical giant Pfizer and has been involved in advocating for changes at tech companies like Salesforce, Autodesk, and Match Group.