Starboard Value LP has about 5% stake in SPLK
Splunk Inc (NASDAQ:SPLK) stock is up 5.6% at $74.15 at last check, after news that activist investor Starboard Value LP has about 5% stake in the software name, and plans to boost the stock's share price. This update comes after last week's announcement of two new directors, including a partner from Hellman & Friedman -- a private equity firm that holds roughly 8% of the company's stake.
This positive price action has SPLK rising further from its Oct. 13 five-year low of $65.00. The 20-day moving average, which has been guiding the shares lower over the past month, still remains overhead, however.
In the options pits, options volume is running a triple the intraday average. So far, 3,767 calls and 3,443 puts have crossed the tape. The October 105 call is the most popular, followed by the October 70 put.
This indicates a bullish sentiment shift, as SPLK's 10-day put/call volume ratio of 1.54 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all but 1% of readings in its annual range.
Meanwhile, of the 28 analysts in coverage, 17 carry a "buy" or better rating and 11 sport a tepid "hold." The 12-month consensus price target of $128.01 is a 73% premium to current levels.