Shares of Workday popped 9% on Wednesday to around $238 after activist investor Elliott Investment Management announced a $2 billion stake in the company.
Workday announced a multi-year plan to enhance its operating model and capital allocation framework on Tuesday, and Elliott said it believes the plan will drive “substantial long-term value creation.”
“We believe CEO Carl Eschenbach, CFO Zane Rowe and the entire Workday team have made substantial progress in recent years, positioning Workday as a unique software franchise with industry-leading growth potential, best-in-class customer retention and a proven management team,” Elliott said in a release on Tuesday.
“We appreciate Elliott’s support,” the company said in a statement.
Workday provides software for finance and human resources departments.
Last month, Workday said it would acquire Paradox, a company that offers conversational artificial intelligence software for recruiting. Workday did not disclose the terms of the deal.
Workday shares are down roughly 15% year to date. The company’s market cap sits at about $63 billion.
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