Shares of Rogers Corp. (ROG) rallied over 13% in after-hours trading yesterday after activist investor Starboard Value disclosed a stake of more than 9% in the company. The hedge fund, led by Jeffrey Smith, seeks to implement meaningful changes to improve Rogers’ financial and stock price performance.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Rogers manufactures specialty engineered materials. Its products are used in battery-powered vehicles, radar systems, personal electronics, and other industrial applications. Year-to-date, ROG stock has lost nearly 31% due to declining demand for electric vehicles (EVs).
Why Is Starboard Building a Stake in Rogers?
Starboard had also built a significant position in Rogers in 2023, when it believed that ROG stock was undervalued and presented a lucrative buying opportunity. At the time, Starboard sought board seats at Rogers. The company settled with Starboard by appointing two independent directors to its board. Following the settlement, Starboard steadily reduced its stake in Rogers and had only a 1% stake as of March 31, 2025.
The activist investor appears to have accumulated Rogers’ shares during the second quarter and disclosed its stake through a regulatory filing on Wednesday. Starboard has started engaging in active negotiations with the company and its board, seeking opportunities for value creation.
Rogers Faces Continued Struggles
Rogers has been dealing with a series of company-specific and industry-wide challenges. Last week, Rogers reported mixed second-quarter results, with sales surpassing expectations but earnings falling short of forecasts as demand from its end markets remained slow.
On July 12, Rogers CEO Colin Gouveia stepped down, and the company has yet to find a permanent successor. The company is also taking strategic steps to streamline its costs and operations, such as implementing cost-reduction initiatives for its Curamik reporting unit, with the aim of saving over $13 million annually.
Is Rogers Stock Good to Buy?
On TipRanks, ROG stock has a Moderate Buy consensus rating based on one Buy and one Hold rating. The average Rogers price target of $72 implies 2.1% upside potential from current levels.
