Shares of VF Rise as Activist Investor Engaged Capital Gains Founding Family’s Support
VF, the owner of popular brands such as Vans and Timberland, saw its stock surge by 12% to $17.11 on Monday following news that activist investor Engaged Capital had garnered the support of the company’s founding family. This comes after Engaged Capital had been pushing for a shakeup in the board and various changes within the company.
The family of VF founder, John Barbey, is now advocating for the replacement of two directors on the company’s board and has thrown their support behind Engaged Capital’s efforts. Notably, Barbey’s descendants own approximately 15% of VF, while Engaged Capital controls about a 1.3% stake.
Engaged Capital had disclosed its stake in VF back in October 2023 and has since been pushing for board seats and several strategic alterations. They have called for a review of noncore assets and cost-cutting measures.
In addition to the backing from the founding family, VF Chief Executive, Bracken Darrell, revealed in a filing on Monday that he had acquired 65,360 shares of the company on Friday, valuing his purchase at about $1.01 million. This move further solidifies support for the changes proposed by Engaged Capital.
Shares of VF have experienced a decline of approximately 9.8% this year. However, the recent developments regarding Engaged Capital and the Barbey family’s support have reinvigorated investor sentiment and propelled the stock price to new heights.
As VF moves forward with potential board changes and strategic reviews, the market will be watching closely to see what impact this will have on the company’s performance and future prospects.
Analyst comment
Positive news. The support from the founding family and the CEO’s stock purchase show increased confidence in Engaged Capital’s efforts and potential positive changes in VF. The surge in the stock price reflects renewed investor sentiment. The market expects board changes and strategic reviews to have a favorable impact on VF’s performance and future prospects.
