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Averting Proxy Wars: 10 Companies Opting for Activist Investor Settlements

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Companies are increasingly reaching settlement agreements with activist investors rather than engaging in costly and prolonged proxy battles. The trend has gained momentum since the introduction of universal proxy card rules in September 2022.

Activist demands are no longer limited to replacing executives or forcing outright company sales. Many campaigns now focus on strategic changes that boards can implement without completely surrendering control. Some strategic changes include improving margins and operational efficiency and exploring strategic alternatives. There are also calls to increase capital allocation to dividends and buybacks, as well as to review underperforming business units. Read how Jana Partners pushed Alkami for a sale.

In 2024, close to 60 settlement agreements with activist investors came into play, a 15% increase from 2023. The momentum continued into 2025, with 44% of activist settlements negotiated privately, up from 17% in 2024. Meanwhile, settlements accounted for 89% of all activist board seat gains in the US in 2025, compared to 84% in 2024.

Companies are increasingly reaching settlements with activist investors because the cost of fighting often outweighs the cost of accommodating some of the demands. Proxy contests can be expensive as companies must spend heavily on legal advisers, investment bankers, public-relations campaigns, shareholder outreach, and proxy solicitation. Take a look at 10 stocks that activist investors have recently targeted.

Additionally, large institutional investors, including pension funds, mutual funds, and asset managers, can significantly influence activist campaign outcomes. Consequently, when shareholders share activists’ concerns about poor performance, governance, or capital allocation, management risks losing support during a proxy contest.

Settling early can therefore help companies preserve shareholder confidence and avoid a potentially damaging boardroom confrontation.

Our Methodology

To compile a list of the Top 10 Companies that have reached agreements with activist investors, we scanned the internet for activist investor campaigns. From that list, we analyzed campaigns that resulted in settlements and therefore averted proxy fights. We ended up with 10 campaigns and also analyzed how many hedge funds hold stakes in each company. The list is compiled in ascending order based on the number of hedge funds holding stakes in Q2 2026.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).

10. Sturm, Ruger & Company, Inc. (NYSE:RGR)

Activist Investor: Beretta Holding S.A.

Number of Hedge Fund Holders: 14

Sturm, Ruger & Company, Inc. reached an agreement with an activist shareholder in May, following months of escalating tensions. Beretta Holding S.A., the largest shareholder, had accumulated an approximately 10% stake in the company and pushed for greater influence over its operations and strategic direction.

The activist campaign intensified in February 2026 when Beretta nominated four candidates for election to the company’s board. It argued that changes in board composition and closer cooperation between the two firearms manufacturers could improve operational performance and create long-term shareholder value. Ruger resisted the campaign, raising concerns about Beretta’s intentions and adopting a shareholder rights plan.

The agreement, known as a Strategic Cooperation Agreement, effectively resolved a potential proxy battle in which the investor sought to replace several members of Sturm, Ruger & Company, Inc.’s board of directors. Berretta also received the green light to increase its ownership stake to as much as 25% of Ruger through a partial tender offer. It also agreed not to initiate or support proxy contests or similar shareholder actions during the standstill period.

The agreement allowed Sturm, Ruger & Company, Inc. to avoid a potentially expensive and disruptive proxy contest while addressing its largest shareholder’s concerns. RGR shares returned 25% over the last six months. Explore Q1 Results.

9. OraSure Technologies (NASDAQ:OSUR)

Activist Investor: Altai Capital Management

Number of Hedge Fund Holders: 20

The tide has slowly turned in favor of OraSure Technologies (NASDAQ:OSUR) following prolonged activist pressure from Altai Capital Management. The activist hedge fund, which owned about a 5.2% stake, criticized the company’s performance, strategic decisions, and capital allocation.

It had also argued that the company could unlock greater shareholder value through a potential sale of the business. It estimated that a sale could value the company at 6.60 per share, representing a 42%–109% premium to the then-prevailing share price. It also pushed for two board seats. Has OraSure returned to growth?

In March, OraSure Technologies and the activist investor reached an agreement avoiding a contested proxy election. As part of the deal, Altai withdrew its two director nominations and shareholder proposal and agreed to support the board’s recommendations on shareholder votes. It also accepted restrictions on further activist activities and agreed not to increase its ownership above 9.9%. OSUR shares returned around 10% since the end of February.

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