Activist investor Starboard discloses 9% stake in Tripadvisor, says shares undervalued

July 3 (Reuters) - Activist investor Starboard Value disclosed a 9% stake in Tripadvisor TRIP.O on Thursday and said the stock was undervalued.

Shares of Tripadvisor surged 17% after the hedge fund said it purchased the shares on the belief that they "represented an attractive investment opportunity." The stock closed at $17.50 on Thursday.

Starboard will engage with the company's management about opportunities to improve the stock price, it said in a filing with the U.S. Securities and Exchange Commission.

Tripadvisor, valued at $1.96 billion, said it values "constructive engagement" with all investors.

"We appreciate their feedback as we continue to grow our business as the world’s most trusted source for travel and experiences," a company representative said, adding, "The Tripadvisor Board of Directors and management team are committed to driving long-term value for our shareholders."

Starboard could not be reached for comment.

Before the Starboard news, the travel platform's shares had been up only 1.5% since the beginning of the year, compared with a 10.5% gain in the Dow Jones U.S. Travel and Leisure Index .DJUSCG, reflecting the company's slow growth versus its peers.

In December 2024, Tripadvisor entered a merger agreement to repurchase all its shares from then-controlling shareholder Liberty Tripadvisor Holdings, and now runs as an independent company.

Starboard has been one of the industry's busiest activist investors, pushing for changes at several companies in the last one year, including Band-Aid maker Kenvue KVUE.N, drugmaker Pfizer PFE.N and design-software firm Autodesk ADSK.O.

Kenvue in March appointed three new directors to its board, including Starboard Chief Executive Jeffrey Smith.