HP Enterprise Stock Jumps as Activist Elliott Builds $1.5B Stake

Hewlett Packard Enterprise (HPE) shares surged Tuesday after Bloomberg reported activist investor Elliott Investment Management has built a more than $1.5 billion stake in the server maker.

Elliott will look to engage with HP Enterprise’s leadership on ways to maximize the company’s value, people familiar with the matter told Investopedia. HP Enterprise declined to comment.

In its latest quarterly report last month, HP Enterprise’s revenue topped estimates, while adjusted profits for the first quarter, along with its projections for the second quarter and full fiscal year, came in weaker than expected. The tech firm said it planned to cut costs and lay off about 5% of its workforce over the next 18 months.

Elliott Also Built Stakes in Southwest Airlines, BP, and Phillips

Elliott has recently made an impact with its stake in Southwest Airlines (LUV), getting several of its nominees placed on the company’s board late last year. This year, Elliott has reportedly built stakes in oil and gas companies BP (BP) and Phillips 66 (PSX), and has invested in the tech sector previously with firms including Salesforce (CRM)

HP Enterprise shares were up over 4% in recent trading, but are still down roughly 30% since the start of the year.