10 Activist Target Stocks with High Cash and Low Valuation

8. Is Bio-Rad Laboratories, Inc. (NYSE:BIO)

Activist Investor: Elliott Investment Management

Number of Hedge Fund Holders: 40

Cash and Cash Equivalent: $517 Million

Bio-Rad Laboratories, Inc. (NYSE:BIO) is an interesting activist-investor target as it combines a substantial liquid asset position and an underperforming core business that could benefit from operational restructuring. While the stock has rallied 19% year-to-date, Elliott Investment Management insists it can generate more value. Explore why the stock is rallying.

The activist investor insists Bio-Rad Laboratories, Inc.’s operating margins have lagged industry peers, which has affected the stock’s performance. It wants the company to consider monetizing Sartorius with its 28% stake. The holding has been valued at approximately $5 billion, making it an unusually significant asset relative to Bio-Rad’s own market capitalization.

As of the end of June, Bio-Rad Laboratories, Inc. had $517 million in cash and cash equivalents and $1.01 billion in short-term investments. This is a reasonably strong liquidity position with approximately $1.62 billion in cash and short-term investments. However, the stock is not cheap, trading at a premium with a forward P/E of 40.59x and a P/S of 3.87x versus the sector median of 19.70x and 3.66x, respectively. Can Activist Pressure Close Bio-Rad’s Valuation Discount?

7. Is Snap Inc. (NYSE:SNAP)

Activist Investor: Irenic Capital Management

Number of Hedge Fund Holders: 45

Cash and Cash Equivalent: $960.49 Million

Snap Inc. (NYSE:SNAP) has come under scrutiny amid valuation concerns. In March, Irenic Capital disclosed a 2.5% stake in the company and reiterated that operational changes were needed to unlock substantial shareholder value.

As part of its campaign, Irenic highlighted the substantial costs associated with Snap Inc.’s augmented reality (AR) glasses business, which it estimates have exceeded $3.5 billion. With the unit consuming about $500 million annually, the activist investor wants the company to either fund the business independently or discontinue it. Snap’s Specs Get an Enterprise Boost.

It has also called for lower operating expenses and increased share repurchases to offset shareholder dilution. The push for more stock buybacks came after Snap ended 2025 with $2.9 billion in cash and cash securities and $437.2 million in free cash flow. Its free cash flow in the first half of 2026 rose 194% to $406.54 million. It also ended the quarter with cash and cash equivalents of $960.49 million.

On the valuation front, the stock trades at a significant discount, with a forward P/E multiple of 7.7x versus the sector median of 12.4x. Its price-to-free-cash-flow multiple of approximately 12.8x suggests it could offer value if its cash generation proves sustainable.

6. Tripadvisor, Inc. (NASDAQ:TRIP)

Activist Investor: Starboard Value

Number of Hedge Fund Holders: 37

Cash and Cash Equivalent: $843.21 Million

Tripadvisor, Inc. (NASDAQ:TRIP) has emerged as a major activist investor target following years of underperformance. Earlier this year, Starboard Value pushed for board changes and a potential sale to unlock shareholder value. Explore the company’s underperformance.

The activist pressure follows Tripadvisor shares’ nearly 50% decline since CEO Matt Goldberg took the helm in 2022. Starboard believes that separating or selling Viator and TheFork could help unlock their standalone value and create greater returns for shareholders. Will TheFork Sale Unlock Value?

While Tripadvisor, Inc. is not net cash, it maintains a substantial liquidity reserve. The company had $843.21 million in cash and cash equivalents as of the end of June 2026. The significant cash balance makes it interesting to activist investors who believe management can use it for buybacks and dividends to return value to shareholders

Tripadvisor, Inc. also appears to be trading at a discount, with a forward P/E of 9.1x versus the sector median of 12.4x. It also trades at a much lower price-to-sales multiple of 0.59x against the sector median P/S of 1.10x. The valuation suggests upside potential, especially given the company’s established global travel brand and its other businesses.

5. Why Dynatrace (NYSE:DT)

Activist Investor: Starboard Value

Number of Hedge Fund Holders: 48

Cash and Cash Equivalent: $1.1 Billion

Dynatrace, Inc. (NYSE:DT) has gained more than 30% year-to-date, outperforming the broader market. Despite the strong share-price performance, the software company has attracted activist investor interest, with Starboard Value seeing opportunities to unlock additional shareholder value through its substantial cash generation and capital allocation strategy.

The activist hedge fund is urging the company to return more capital to shareholders and improve operating margins. It insists it has considerable financial flexibility to increase shareholder distributions.

While Dynatrace, Inc. exited June with about $1.1 billion in cash and cash reserves, Starboard Value believes it can return up to $2.5 billion to shareholders over the next three years. Dynatrace has already approved $1 billion in share buybacks. Additionally, it wants the company to focus on margin expansion. Why is the stock rallying?

Adjusted free cash flow in the first quarter of fiscal 2027 increased to $309.18 million, up from $262.16 million in the same quarter last year. The company expects full-year adjusted free cash flow to range between $610 million and $615 million.

Nevertheless, valuation remains a consideration for investors. Dynatrace, Inc. trades at a forward price-to-earnings multiple of 29.14x, above the sector median of 23.26x, suggesting that some of its growth prospects and potential operational improvements may already be reflected in its share price.