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The company posted $6.73 in earnings per share on $16.88 billion in revenue. Analysts surveyed by LSEG, formerly known as Refinitiv, had forecast $6.67 in earnings per share on $16.74 billion in revenue. Dollar Tree — The discount retailer jumped 4.8% after getting an upgrade from Goldman Sachs to buy from neutral. Analysts polled by LSEG forecast an adjusted $2.52 in earnings per share and $21.04 billion in revenue. Goldman Sachs earned $5.47 per share on revenue of $11.82 billion, exceeding LSEG estimates.
Persons: Lockheed Martin, chipmakers, Goldman Sachs, Johnson, LSEG, Wyndham, Brian Essex, Hannon Armstrong, Morgan Stanley, Fortrea, Jeff Smith, , Samantha Subin, Alex Harring, Lisa Kailai Han, Pia Singh, Sarah Min, Tanaya Macheel Organizations: Lockheed, LSEG, Circor, Nvidia, U.S . Department of Commerce, Marvell Technology, Devices, Broadcom, Goldman, Bank of America, Bank of New York Mellon, Wyndham Hotels, Resorts, Wyndham, Choice, JPMorgan, VF Corp, Viasat —, Hannon Armstrong Sustainable Infrastructure Capital, Systems Locations: China
Starboard dusts off old plan at News Corp
  + stars: | 2023-10-16 | by ( ) www.reuters.com   time to read: +2 min
A view of the signage outside the News Corporation building in New York, U.S., September 21, 2023. REUTERS/Bing Guan Acquire Licensing RightsNEW YORK, Oct 16 (Reuters Breakingviews) - Maybe it takes a pile on to move the Murdoch family’s thinking. Reuters reported on Friday that Jeff Smith’s Starboard is the latest activist to try and unlock value at News Corp (NWSA.O), the publisher of the Wall Street Journal, owner of book conglomerate HarperCollins and Realtor.com. Starboard, which took a position in the $13 billion company, is pushing for a spinoff of the real estate assets, according to the Wall Street Journal. Last year Irenic Capital Management agitated for the same transaction in reaction to the Murdochs’ desire to reunite News Corp with broadcasting company Fox (FOXA.O).
Persons: Bing Guan, Murdoch, Jeff Smith’s, pushback, Jennifer Saba, Jean, Pierre Mustier, Atos, Larry Fink, Uncle Sam, Lauren Silva Laughlin, Sharon Lam, Aditya Sriwatsav Organizations: News Corporation, REUTERS, Reuters, News Corp, Wall Street Journal, HarperCollins, Wall Street, Capital Management, Fox, X, Thomson Locations: New York, U.S, Europe
Starboard Value's Jeffrey Smith, one of the busiest activist investors for two decades, said companies have grown more receptive to voices like him. Smith also sought a turnaround at pizza chain Papa John's in 2019 at a tumultuous time for the company . The Starboard CEO was even active during the Covid-19 pandemic . We're simultaneously respected and feared inside companies," Smith said. "More often than not, now the conversations are highly constructive and respectful and relatively easy," Smith said.
Persons: Jeffrey Smith, Smith, , we've, I'm, We're Organizations: CNBC's Financial, Olive, Darden, Mercury Systems, Wharton Locations: New York
The Art of the Activist
  + stars: | 2023-10-12 | by ( Sara Eisen | ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Art of the ActivistStarboard Value's Jeff Smith has been one of the busiest activist investors over the last two decades, best known for his proxy fights in the restaurant space. The Starboard Value CEO is relentless in calling for changes at corporations, targeting Humana, Kohl's, Mercury Systems, and other companies during the Covid pandemic. He discusses how the current market environment is influencing his top picks.
Persons: Jeff Smith Organizations: Mercury Systems
NEW YORK, Oct 10 (Reuters) - Nelson Peltz's Trian Fund Management returned nearly 3% in the first nine months of the year, investors said on Tuesday, as his bet on Walt Disney Co (DIS.N) contributed to the activist hedge fund lagging its peers' returns. Disney's stock price has tumbled roughly 30% since February, when Peltz ended a battle for a board seat but kept Trian invested in the stock. Some blue-chip activist investors, including Bill Ackman's Pershing Square Capital Management and Jeff Smith's Starboard Value, are posting better numbers. The average activist investor gained nearly 7% through the end of September, according to Hedge Fund Research data. At the end of June, the average activist investor was up 11.5% while Trian was up roughly 6%, HFR data and investors said.
Persons: Nelson, Peltz, Trian, Janus Henderson, Trian's, Bill Ackman's, Jeff Smith's, Svea Herbst, Bayliss, Nick Zieminski Organizations: Fund Management, Walt Disney Co, Disney, Reuters, Janus Henderson Group, Ferguson, Bill Ackman's Pershing, Capital Management, Pershing, Fund Research, Svea, Thomson Locations: Boston
High-profile investors Jeff Smith and Alex Sacerdote hit home runs after Cisco 's buyout of cybersecurity software company Splunk sent shares surging. The move marked a big win for the two hedge fund investors with big stakes in Splunk. Splunk was Smith's Starboard Value's third-biggest holding at the end of June, with a bet worth more than $430 million. The stock, Whale Rock's fifth-biggest stock bet as of the end of June, has soared more than 66% this year. Sacerdote also had a big bet on another cybersecurity company like Splunk, Fortinet .
Persons: Jeff Smith, Alex Sacerdote, Splunk, Smith, Sacerdote, Fortinet Organizations: Cisco, Rock Capital Management, Acacia Research, Big Tech, Microsoft, Meta, Nvidia, Netflix, Guggenheim Locations: Splunk, Wix.com
Its restaurant portfolio includes Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar. But a better opportunity might be their hidden gem in the 150 Outback restaurants in Brazil. As for Starboard, the firm has had extensive success at both Papa John's and Darden, but in strikingly different ways. Papa John's was a very amicable engagement in which Starboard was invited onto the board and worked with management to create extensive shareholder value. If management is smart, they will view Darden as a warning, and Papa John's as the opportunity.
Persons: David C, George, Bloomin, outperforming Darden, Jeff Smith, Papa John's, Chris, Del Frisco's, accretive, Jana Partners, John P, Gainor, Lawrence V, Jackson, Jana, Papa, Darden, Ken Squire Organizations: Brands, Wine, Papa John's, Darden, Texas Roadhouse, LongHorn Steakhouse, Texas, Fogo De Chao, 13D Locations: United States, BLMN, Fogo De, Brazil
"This quarter puts Salesforce in a league of its own and isn't being appreciated nearly enough at these prices," Jim says. CRM YTD mountain Salesforce's year-to-date stock performance. That is likely why Salesforce stock traded at a valuation "well below" its peers, Smith argued at the time. For context, here's the full list of Salesforce peers included Starboard's presentation: Club holding Microsoft 's (MSFT) productivity and business processes segment, Adobe, Club holding Oracle (ORCL), Intuit (INTU), ServiceNow, Workday and SAP (SAP). Importantly, that $265 target is strictly the result of applying current average peer valuation to Salesforce's current growth/profit mix.
Persons: Marc Benioff, Jim Cramer, Jim, Salesforce, Jeff Smith —, Smith, Salesforce's, , it's, Jim Cramer's, Patrick T Organizations: , Club, ServiceNow, Adobe, Microsoft, Oracle, Intuit, SAP, CRM, CNBC, Salesforce.com Inc, Global Technology, Fallon, Bloomberg, Getty Locations: That's, TurboTax, Salesforce's, Laguna Beach , California, U.S
FUNNY THINGS: A Comic Strip Biography of Charles M. Schulz, written by Luca Debus and Francesco Matteuzzi. Illustrated by Luca Debus. Charles M. Schulz was a complicated man. “Funny Things,” the new hand-drawn biography of Schulz by Luca Debus and Francesco Matteuzzi, doesn’t shy away from these other traits. Fortunately (and this becomes clear in “Funny Things” almost immediately), “Peanuts” was all that to Debus and Matteuzzi, too.
Persons: Charles M, Schulz, Luca Debus, Francesco Matteuzzi, Charlie Brown, Lucy Van Pelt, Sparky, Michelangelo, , Moby, Dick ”, , Jeannie ”, Mister Ed, Dagwood, Snoopy, Bone, Debus
An Outback Steakhouse truck sits parked outside a restaurant in New York. Shares of Outback Steakhouse owner Bloomin' Brands rose 7% in morning trading Friday after an activist investor disclosed its interest in the restaurant company. Starboard Value now owns 9.9% of Bloomin's shares, according a regulatory filing. In addition to Outback, Bloomin' also owns Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse and Wine Bar. Starboard Value has a proven track record of successful turnarounds at restaurant companies.
Persons: Bloomin, Jana Partners, Garden's breadsticks, Papa John's, John Schnatter, Jeff Smith Organizations: Fleming's, Wine, Bloomin, Barington Capital Group, Darden Restaurants Locations: New York
The extraordinary activist-investor interest in Salesforce (CRM) eased further in the second quarter, according to the latest regulatory filings from influential Wall Street pros. His firm still owned about 2 million Salesforce shares as of June 30. Tepper also bought 2.3 million shares of Advanced Micro Devices (AMD) and 480,000 shares of Apple (AAPL) during the second quarter. As a result, Appaloosa's holdings as of mid-August may differ significantly from the conclusion of the second quarter. GOOGL YTD mountain Alphabet YTD performance Bets on Google's parent company, Alphabet (GOOGL), varied in the second quarter.
Persons: Dan Loeb's, Jeff Smith's, Salesforce, Jeffrey, Starboard's Jeff Smith, Smith, he's, 13Fs, it's, Marc Benioff, Mason Morfit, Paul Singer's Elliott, Elliott, Elliott —, Nelson Peltz's, Bob Iger, Peltz, David Tepper, Tepper, Bill Ackman's, Seth Klarman, Loeb, Klarman, Stanley Druckenmiller, Druckenmiller, Eli Lilly, That's, Jim Cramer's, Jim Cramer, Jim, Kim Kulish Organizations: Inclusive Capital, CNBC, Paul Singer's Elliott Management, Constellation, Club, Constellation Brands, Corona, Modelo, DIS, Disney, Management, Walt Disney Co, Peltz, Nvidia, Appaloosa Management, Microsoft, Micro Devices, Apple, AMD, Bill Ackman's Pershing, Capital Management, Oracle, Duquesne Family Office, Jim Cramer's Charitable, Corbis, Getty Locations: Salesforce, Tuesday's
Salesforce cage-rattlers leave in profitable peace
  + stars: | 2023-08-15 | by ( ) www.reuters.com   time to read: +2 min
Acquire Licensing RightsNEW YORK, Aug 15 (Reuters Breakingviews) - For activist investors in Salesforce (CRM.N), the low-hanging fruit should suffice. Fast growth and big-ticket acquisitions that Salesforce boss Marc Benioff had pursued turned anathema last year. The stock price roughly halved, falling faster than the Nasdaq-100 Technology Sector Index (.NDXT). Benioff eventually acquiesced, slashing 10% of the workforce, disbanding the deals committee and unveiling a $20 billion stock buyback plan. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Porte, Jeff Smith’s, Dan Loeb’s, Marc Benioff, ValueAct, Benioff, Jonathan Guilford, Exor’s Philips, Bain, BoE, Jeffrey Goldfarb, Sharon Lam Organizations: Viva Technology, Porte de, Reuters, Big Tech, Nasdaq, Profit, Elliott Investment Management, Twitter, FC Barcelona’s, Messi, Thomson Locations: Paris, France, Salesforce, Salesforce’s
Starboard Value's Jeffrey Smith has been one of the busiest activist investors over the last two decades, best known for his proxy fights in the restaurant space. Darden shares saw a nearly 60% jump under Smith's activism, from October 2014 to April 2016. After Darden, Smith sought a turnaround at pizza chain Papa Johns , taking a $200 million stake in the company and becoming chairman in 2019. Smith took an activist stake in software company Salesforce last year. The Starboard CEO was even active during the Covid pandemic, calling for changes at Humana, Kohl's, Mercury Systems and other companies.
Persons: Jeffrey Smith, Smith, Darden, Papa, John Schnatter Organizations: Olive, Darden, Wharton grad, Mercury Systems Locations: New York
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailStarboard Value CEO Jeff Smith: It's a healthy market and we're looking at attractive companiesStarboard Value CEO Jeff Smith joins 'Squawk on the Street' to discuss how the current environment has impacted Smith's decisions, the CEO's first investment into utilities, and more.
Persons: Jeff Smith
Watch CNBC's full interview with Starboard Value CEO Jeff Smith
  + stars: | 2023-07-25 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Starboard Value CEO Jeff SmithStarboard Value CEO Jeff Smith joins 'Squawk on the Street' to discuss how the current environment has impacted Smith's decisions, the CEO's first investment into utilities, and more.
Persons: Jeff Smith
"AI is an enormous opportunity," Smith said Tuesday on CNBC's " Squawk on the Street ." The internet was one to start with ... maybe you talk about cryptocurrency blockchain and then you might talk about AI." Smith said AI is an "enormous opportunity" for Salesforce , the software company that he took an activist stake in in 2022. Revenue growth did slow a little bit, which was expected," Smith said of Salesforce. Smith said he's also bullish on software name Splunk , which he said is slightly behind Salesforce in terms of execution.
Persons: Jeff Smith, Smith, blockchain, chatbot, they've, Salesforce, there's, he's Organizations: Nvidia, Ramius Locations: York
A man was spotted running towards Obama's house, law enforcement officials told CBS News. The man, Taylor Taranto, has an open warrant on charges stemming from the January 6, 2021 riot. Taranto was also sued by the widow of a Metropolitan Police Department officer who died by suicide. Officials alleged that the man, Taylor Taranto, 37, also had multiple weapons and materials to make an explosive device similar to a Molotov cocktail, CBS News reported. A Metropolitan Police Department (MPD) spokesperson told Insider that officers and federal law enforcement partners arrested Taranto.
Persons: Taylor Taranto, , Barack Obama's, Taranto, sleuths, HuffPost, Erin Smith, Jeff Smith, Smith Organizations: CBS News, Metropolitan Police Department, Service, Capitol, Officials, Secret Service, Ordnance, ABC News, MPD Locations: Obama's, Taranto, Washington
It's not unusual for a company's stock price to soar — or sink — on news of a CEO shakeup. So, CEOs matter when picking stocks — and at the Club, these are the five things we look for when evaluating the leaders of our holdings. A stock's day-to-day and even month-to-month performance may not truly reflect how well a CEO is leading a company. Trust has value, and the stocks of companies led by reputable CEOs with competent management teams can trade at premium valuations. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: Mary Dillon, Locker, J im Cramer, buybacks, Rainer Blair, , Kevin Johnson, Marc Benioff, Mark Zuckerberg, Zuckerberg, we've, Bruce Broussard, Humana, Jeff Smith's, Craig Jelinek, who's, that's, Jelinek, it'd, Andy Jassy, Tim Cook, he's, Cook, Jim Cramer's, Dan Schulman, Sanjiv Lamba, Linde, Lamba, Eli Lilly, Dave Ricks, Eli Lilly's, Jim, Lilly, Jim Farley, Farley, Elon Musk's Tesla, Ford, LLY, Jim Cramer, Spencer Platt Organizations: Club, McKinsey & Co, Natural Resources, GE Life Sciences, SVB Securities, Starbucks, Humana, Bain & Co, Costco, CNBC, Apple, Amazon's, Football, MGM, Management, PayPal, Linde, LIN, Ford Motor, Wall, EV, Ford, The New York Stock Exchange, Financial, Getty Locations: U.S, Manhattan, New York City
Lots of Club holdings, including Nvidia (NVDA) and Alphabet (GOOGL), were among the stocks traded by some of Wall Street's biggest investors and money managers in the first quarter. That firm, Jeffrey Ubben's Inclusive Capital, had owned 1.63 million Salesforce shares at the end of December, worth nearly $217 million at the time. Jeff Smith's Starboard Value also sold some Salesforce shares in Q1, leaving the firm with 2.5 million shares at the end of March. Mason Morfit's ValueAct Capital amplified its Salesforce stake in the first quarter, ending with 3.5 million shares, up from just 560,221 shares at the end of 2022. Loeb's Third Point amassed 4.75 million shares of Alphabet, worth $492.7 million at the end of the first quarter.
Salesforce says Elliott will not nominate directors to board
  + stars: | 2023-03-27 | by ( ) www.reuters.com   time to read: +1 min
March 27 (Reuters) - Salesforce Inc (CRM.N) said on Monday activist investor Elliott Management Corp has decided to not proceed with director nominations to the board of the cloud-based software provider, due to its strong earnings and 2024 transformation initiatives. "Salesforce and Elliott have committed to continue the productive working relationship they have developed together," a joint statement from the companies said. Earlier this month, Reuters reported Elliott nominated a slate of directors to Salesforce's board. Elliott unveiled its multi-billion dollar stake in Salesforce January. Other hedge funds with stakes include Jeff Ubben's Inclusive Capital Partners, Jeff Smith's Starboard Value, ValueAct Capital and Third Point.
Salesforce sufficiently acquiesces to angry mob
  + stars: | 2023-03-02 | by ( Robert Cyran | ) www.reuters.com   time to read: +4 min
The software developer revealed financial progress in its quarterly results, indicated it would throttle pricey deals and installed new board members, including a representative from ValueAct Capital. Co-Founder and Chief Executive Marc Benioff said on Wednesday that improving profitability is the company’s top priority. As evidence of the commitment, Salesforce said in January that it would lay off 10% of its workers. They are Mason Morfit, chief executive of ValueAct Capital; Sachin Mehra, Mastercard’s finance chief; and Arnold Donald, the former CEO of Carnival. Assertive investors Starboard Value, ValueAct Capital, and Inclusive Capital, have held talks with Salesforce, according to Reuters.
Hedge fund Elliott Management's decision to nominate candidates for Salesforce 's (CRM) board represents an escalation of the activist agitation at the Club holding. The Club generally believes activists' wishes for cost-cutting at Salesforce are positive, as long as Benioff remains at the helm. It's unclear whether Elliott is nominating two or three candidates for Salesforce's board, according to CNBC's David Faber, who broke the story Wednesday morning . Benioff is chairman of Salesforce's board. However, we don't want the activist pressure at Salesforce to cause Benioff to depart the company.
Jim Cramer suggested Saturday that plans for a leadership change at Club holding Salesforce (CRM) — helmed by co-founder Marc Benioff for more than two decades — may be disclosed in the near future. CRM YTD mountain Salesforce (CRM) YTD performance In early January, Salesforce announced a cost-cutting plan that included layoffs and office space reductions — moves that Jim has said were pushed for by Starboard . While Benioff has said he's "never leaving" Salesforce , the company has twice elevated an executive to the role of co-CEO. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Marc Benioff, founder, chairman and CEO of enterprise cloud computing company Salesforce.
Activist investor Starboard Values wants Salesforce to grow its adjusted operating margins above 30%. In September, Salesforce announced a goal of 25% adjusted operating margins by fiscal 2026, up from a target of 20% for fiscal 2023. Starboard found Salesforce's mix of operating margins and revenue growth averaged much lower than its peers, including Microsoft and Oracle. Starboard showed Oracle at a 10.7% increase in revenue with adjusted operating margins of 43.3% for its current fiscal year. It showed Microsoft's at a 10.9% increase in revenue and 46.6% increase in operating margins, Starboard said.
Feb 17 (Reuters) - Cloud-based software firm Salesforce Inc (CRM.N) and activist investor Elliott Management Corp are in discussions to reach an agreement that may end a possible board challenge, according to two people familiar with the matter. The battle at Salesforce has pitted Elliott as well as other activist investors against Marc Benioff, one of Silicon Valley's most iconic chief executives. Salesforce's growth has slowed dramatically in recent quarters and last month the company said it would cut 10% of jobs to address its performance. Representatives for Salesforce and Elliott declined to comment. Elliott too has long invested in technology companies and in the past reached settlements for board seats with companies including Pinterest (PINS.N), Twitter and eBay (EBAY.O).
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