After hours: activist investor reveals stake in box, Tyson cuts BPA forecast

Is it the pent-up energy that comes from the long holiday weekend, or the several intriguing news that arrive after the market closes?

Either way, the trade is pretty lively in the after-hours scene tonight. Here are two big reasons why.

Image source: Getty Images.

Starboard stows away in

Activist hedge fund Starboard Value is now a major shareholder of technological actions Box (NYSE: BOX). In a regulatory document filed Tuesday after market hours, Starboard revealed that it had accumulated a 7.5% stake in the cloud content specialist.

In the filing, Starboard used boilerplate language to indicate its “belief that stocks, when bought, were undervalued and presented an attractive investment opportunity.” The company did not specify its intentions with the stock.

Box was also quite silent on the subject.

A company spokesperson told TechCrunch that “[w]While we do not comment on interactions with our investors, Box is committed to maintaining an active and engaged dialogue with shareholders. The board of directors and management team are focused on growth and profitability to generate long-term shareholder value as we continue to pioneer the cloud content management market. “

Typically, Starboard takes the activist path by taking large stakes in companies and campaigning for managerial and / or operational change. He may, however, simply consider Box’s shares to be undervalued. Box stock recently hit new year-over-year lows and is barely above the $ 14 per share it sold in its 2015 initial public offering (IPO).

Box management may not be eagerly awaiting Starboard’s involvement, but investors seem to think it will be good for stocks: Box’s stock is up 8% in after-hours trading.

Tyson kicks off 2019 EPS forecast

Tyson Foods (NYSE: TSN) investors might want a Starboard to build their business around now. The food producer and distributor has updated its forecast for its full 2019 financial year, and the downgrade is lowering its share price.

For the year, the company now plans to reserve one per share, non-GAAP (adjusted) net income of $ 5.30 to $ 5.70.

This not only represented a reduction from the previous forecast – which was $ 5.75 to $ 6.10 – but was also well below analysts’ average estimate of $ 5.93 for the period.

Tyson said the reason for the downgrade is “it is experiencing short-term challenges that are negatively affecting fourth quarter earnings.”

More specifically, it concerns “the squeeze on margins linked to the cancellation of a gain on cereal derivatives valued at market value observed during our third quarter, the volatility of the commodity market, the implementation of improved food safety initiatives, fire at a beef processing plant and slower than expected operational improvements in the Chicken segment. ”

This development will likely slow down or reverse the dynamics of Tyson stocks. These had been on quite the tear this year, thanks to initiatives such as a push into the trend segment of plant-based alternative meats.

Tyson is a turkey from a stock tonight. It is down almost 6% at the time of this writing.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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