Starboard Value Builds Over 9% Stake in Engineering-Materials Maker Rogers
Just when you might have thought the dust had settled at Rogers Corporation, the Arizona-based engineering-materials maker, activist investor Starboard Value is back in the spotlight, having significantly ramped up its stake. Filings reveal the activist fund now holds over 9% of the company, a move that certainly raises eyebrows given their history.
For those keeping score, this isn't Starboard's first rodeo with Rogers. The firm, known for its deep dives into underperforming companies and pushing for operational changes, agitated quite publicly at Rogers throughout 2023. That campaign culminated in a settlement deal, which, as these things often do, saw Starboard gain representation on Rogers' board of directors. It's a classic activist playbook: identify perceived missteps, build a position, push for change, and secure a seat at the table.
What's more interesting about this latest increase in stake is the timing. After securing board representation, many activist investors might ease off the gas, giving the new leadership and strategy time to unfold. However, Starboard's decision to nearly double its previous reported stake to over 9% suggests a few possibilities. Perhaps they see sustained undervaluation in Rogers' shares despite the recent market movements, believing there's still considerable upside potential that the market isn't fully appreciating. Or, it could signal a desire for even greater influence, indicating they might not be entirely satisfied with the pace or direction of the changes implemented thus far.
Rogers, for its part, operates in a highly specialized niche, providing advanced materials solutions critical for industries ranging from electric vehicles and clean energy to aerospace and defense. This makes it a fascinating target for an activist like Starboard, which often looks for companies with strong underlying assets but perhaps suboptimal operational efficiencies or capital allocation strategies. The inherent value in Rogers' intellectual property and manufacturing capabilities for high-performance materials is undoubtedly a draw.
We've seen this pattern before in the materials sector, where companies with long investment cycles and complex R&D can sometimes become targets for investors seeking quicker returns or more focused strategic shifts. Starboard’s consistent build-up in Rogers, even after a settlement, speaks volumes about their conviction. It's not just a casual investment; it's a clear, continued commitment to driving value, implying they see a significant gap between Rogers' current market valuation and its intrinsic worth.
Looking ahead, the market will be keenly watching how this increased stake translates into further action. Will Starboard push for more aggressive operational improvements, divestitures of non-core assets, or even a different strategic direction entirely? The dynamics between an activist investor with a substantial stake and a company's management and board can be complex. It's a constant dance of influence, negotiation, and, at times, public pressure. For Rogers, it means continued scrutiny, but also potentially a catalyst for unlocking more value for all shareholders. It certainly feels like this isn't the last chapter in the Starboard-Rogers story.
