Shares of cloud software company Box (BOX) - Get Report posted additional gains on Wednesday after the company indicated it was on board with activist fund Starboard Value, after the hedge fund disclosed it has taken a 7.5% stake in the company.
According to a regulatory filing with the Securities and Exchange Commission, Starboard built up its position in Box's Class A stock through trades in July and August - the idea being that it is looking to establish influence with Box's board of directors and management to incur change.
A statement by Box acknowledged the activist's overtures, noting that "while we do not comment on interactions with our investors, Box is committed to maintaining an active and engaged dialogue with stockholders."
"The board of directors and management team are focused on delivering growth and profitability to drive long-term stockholder value as we continue to pioneer the cloud content management market," the company said.
Box last week posted a break-even fiscal second-quarter, beating estimates of a 2-cent loss. The company also raised its full-year 2020 revenue guidance to a range of between $690 million and $692 million, above the previous range of $688 million to $692 million.
The company held steady on its existing 2020 guidance for adjusted per-share earnings of between breakeven and a 2-cent gain.
Shares of Box were up more than 9% at $16.25 a share in early trading on Wednesday, after having risen 1.5% to $14.85 on Tuesday.