As Starboard Value acquires a majority stake in Qorvo, the stock price soars.

The Key Takeaways

• Qorvo stock jumped by 11% after Starboard Value, a hedge fund made an important investment. Qorvo is a maker of semiconductors for radio frequencies and power.
• Starboard has 7,29 million shares. This is worth more than half-a-billion dollars.
• Qorvo announced in October that its business would be negatively affected by the changing demand for cellphones.

Qorvo shares (QRVO), which are owned by the hedge fund Starboard Value, jumped 11 percent on Friday after it made an investment. Qorvo is a maker of power and radio frequency semiconductors.

Qorvo stated in a filing that Starboard owned 7.29 million of its shares, which is 7.7%. Ownership of the property is worth approximately $536 million at yesterday’s closing rate of $73.59.

Qorvo warned of business slowdown last quarter

Qorvo’s struggle has been a recent one. Shares of Qorvo plunged by 25% in October to the lowest levels since the COVID-19 outbreak began. The firm had posted an unexpected second-quarter profit and warned that it would face a continuing business slowdown.

Grant Brown stated that the changing habits of consumers in terms of buying cellphones reduced demand. Brown also said the company had been undergoing a transformation. “taking appropriate actions, including factory consolidation and operating expense reductions as well as focusing on opportunities that align with our long-term profitability objectives.”

Neither Qorvo, nor Starboard Value responded instantly to Investopedia’s comment request.

Even with today's advance, shares of Qorvo are down almost 20% in the past year.

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