NEW YORK (TheStreet) -- Shares of LifeLock (LOCK) are rising 4.25% to $15.70 on heavy trading volume late Friday morning after Elliott Managementrevealed an 8.8% stake in the theft protection company, according to an SEC filing yesterday.
The firm said the Tempe, AZ-based company is undervalued and that it has "initiated a dialogue" with LifeLock's management and board to boost shareholder value.
Elliott said it believes there is material upside to the company's May 20 price of $12.19 per share, which is the day before the fund began "significant purchases" of shares.
Since 1994, the New York-based firm has launched over 96 campaigns at 92 companies, Factset noted.
About 4.31 million of LifeLock's shares were traded so far this morning vs. its average volume of 1.2 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Recently, 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.
You can view the full analysis from the report here: LOCK