(Reuters) activist investor Mantle Ridge has built up an interest worth more than $ 1 billion in consultancy firm Cognizant Technology, which are undervalued its shares, the Wall Street Journal reported Friday.
Shares of the company, whose market capitalization is more than $ 41 billion, rose more than 5% in extensive trade.
Mantle Ridge began to buy shares from the company in the second half of 2022, when the share traded in the high $ 50 to low $ 60 per share, the report added.
The activist company has been privately involved in knowledge about its progress about increasing the stock price, according to the report, referring to people who are familiar with the issue.
Last month, cognizing, annual income under the estimates, lied by lukewarm editions to his IT companies such as an uncertain economy and high interest rates are busy companies.
“Since mid-2024, members of our management team and board have been constructively working on Mantle Ridge, and Mantle Ridge has communicated support for our management and board several times,” said a conscious spokesperson in an e-mail statement to Reuters.
Mantle Ridge did not immediately respond to a Reuters request for comments.
This involvement reflects a new approach from Mantle Ridge, who has so far chosen to work behind the scenes at Cognizant. It is also not going to nominate directors from the company’s board, according to the WSJ report.
The company plans to stay closely involved with the management of Cognizant and believes that the company has more room to grow.
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