Shares of networking equipment company Juniper Networks rose by more than seven percent today after a second activist hedge fund disclosed a significant ownership stake.
Jana Partners, a New York-based fund, disclosed in a letter to investors that it had bought a large stake in Juniper. It intends to push the company’s management for a $300 million reduction in operational costs and for a higher return of capital to shareholders. The fund hasn’t yet said how big its stake in Juniper is.
Jana’s purchase follows one by hedge fund Elliot Management, which disclosed a six percent stake in the company earlier this month and said it intends to press for $200 million worth of reductions in operational costs and a $3.5 billion stock buyback.
Juniper shares have risen by more than 18 percent since Jan. 10, the day before Elliot launched its campaign to reshape the company.
The move also follows a quarterly earnings report by Juniper yesterday that beat the expectations of analysts. Juniper CEO Shaygan Kheradpir said on a conference call that the company will soon announce a new operational plan that will include cost cuts, possible job cuts and a new capital allocation plan.
Juniper shares were at $27.88 in midday trading, up $1.87, or 7.2 percent, from Thursday’s closing price.