Qorvo Stock Soars as Starboard Value Takes Stake in Chipmaker | Global News Avenue

Corvo (QRVOShares of the company rose 11% on Friday when hedge fund Starboard Value made a major investment in the radio frequency and power semiconductor maker.

Qorvo reported in a regulatory filing that Starboard holds 7.29 million shares of the company, or 7.7%. Based on yesterday’s closing price of $73.59, the stake is worth approximately $536 million.

Qorvo warns of slowdown in last quarter

Qorvo has been struggling lately. In October, the company’s shares plunged 25% to their lowest level since the COVID-19 pandemic began in 2020 release It posted a surprising loss in the second quarter and warned that its business faced a continued slowdown.

then, CFO Grant Brown explained that changes in consumer phone buying habits have reduced demand. Brown added that the company is “taking appropriate actions, including plant consolidation and operating expense reductions, as well as focusing on opportunities consistent with our long-term profitability goals.”

Qorvo and Starboard Value did not immediately respond. Investment Encyclopedia Request to comment.

Even at today’s gains, Qorvo’s stock price is still down nearly 20% over the past year.