Why EMC (EMC) Stock Is Surging Today

NEW YORK (TheStreet) -- Shares of EMC Corp.  (EMC) are up 4.89% to $28.30 in pre-market trade after Elliott Management Corp. took a stake of over $1 billion in the date storage company and plans to push it to break itself up, sources told the Wall Street Journal.

The investment, which hasn't been previously disclosed, amounts to about 2% of the company's $55 billion equity value, and would make the hedge fund its fifth-largest shareholder, according to FactSet data. 

Elliott will attempt to convince EMC that the company's lagging stock would receive a substantial boost if it were to spin off VMWare (VMW),, sources said, the Journal noted. 

EMC owns about a 80% stake in VMware.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates EMC CORP/MA as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate EMC CORP/MA (EMC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

If you liked this article you might like

Here the One Business That Could Fit 'Perfectly' Inside Meg Whitman's Overhauled Hewlett Packard

HP Enterprise Could Use an Expected Software Windfall to Make Hardware Acquisitions

7 Stocks Trading on Big Volume -- and What to Do With Them Now

EMC Stock Higher, Dell's $63 Billion Deal Closing Next Week

John Paulson Bought These 5 Stocks -- but the Charts Say Sell