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Red Robin News: RRGB Stock Rallies 6% on Activist Investor Interest

Red Robin (NASDAQ:RRGB) news for Monday includes an increase to RRGB stock following interest from an activist investor.

Red Robin News: RRGB Stock Rallies 6% on Activist Investor Interest

Source: Juan Llauro/Shutterstock.com

VIEX Capital Advisors is the activist investor that has taken an interest in Red Robin stock. The group has acquired a 6.70% stake in the company and wants to increase this stake to more than 10%. However, it may have trouble doing this.

Red Robin adopted a poison pill strategy earlier this year to stop any hostile takeover attempts of the company. VIEX Capital Advisors wants the company’s Board of Directors to waive this plan so that it can obtain its over 10% stake in RRGB stock.

VIEX Capital Advisors’ reasons for acquiring a stake in RRGB stock are twofold. First, the company says that the low price of the stock was an attractive value for it as an investment opportunity.

VIEX Capital Advisors also says that it was upset by some former Red Robin news. This includes the rejection of a previous takeover offer. To be more specific, the activist investor says it is unhappy with the company rejecting the offer without having a plan in place to return value to shareholders.

The recent acquisition now has VIEX Capital Advisors holding a total of 867,426 shares of RRGB stock.

RRGB stock was up 5.77% when markets closed on Monday. The stock is largely unmoving in after-hours trading. It is also up 15.91% since the start of the year.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/12/red-robin-news-rrgb-stock-rallies-6-on-activist-investor-interest/.

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