Why ACI Worldwide Stock Jumped Today
Shares of ACI Worldwide (NASDAQ: ACIW) jumped today, up by 10% as of 1:20 p.m. EST, after activist investor Starboard Value increased its stake in the company and sent management a letter advocating for a sale. Starboard now owns 9% of ACI Worldwide.
Starboard has been slowly accumulating shares in the fintech company, which enables electronic payments, throughout the year. ACI shares have lagged the broader market in 2020, and Starboard suggests that the company is undervalued and that a sale would unlock shareholder value. The investor notes that ACI declined to pursue a sale a year ago, believing that it could fare better as a stand-alone public company. The stock had declined by as much as 45% since then.
ACI has missed its long-term guidance on numerous occasions throughout the years, and Starboard was expecting the company to provide a stronger outlook at its recent Analyst Day after declining to pursue a sale.
Source Fool.com
