NEW YORK (TheStreet) -- Shares of Mentor Graphics (MENT) were spiking 7.25% to $26.49 on heavy trading volume mid-afternoon Friday after activist investment firm Elliott Management disclosed an 8.1% stake in the electronic design automation tool supplier. 

The firm believes there are "numerous operational opportunities," including enhancing operational efficiency and revenue quality and strategic opportunities to boost shareholder value, according to an SEC filing.

Elliott also began conversations with Mentor's management and board about those opportunities.

The firm previously reported a 4% stake in a 13F filing in August, Bloomberg noted.

The Wilsonville, OR-based company is the latest technology company Elliott has targeted.

The firm has also invested in Qlik TechnologiesRiverbed and Compuware, all of which were purchased by private equity firms after Elliott invested, CNBC reports. 

More than 3.17 million of Mentor's shares have changed hands so far today vs. its average volume of 1.57 million shares per day.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

TheStreet Ratings team rates Mentor Graphics as a Hold with a ratings score of C+.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations.

But the team also finds weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: MENT

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