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.
8. Stride, Inc. (NYSE:LRN)
Activist Investor: Fivespan Partners
Number of Hedge Fund Holders: 38
Stride, Inc. (NYSE:LRN) reached a cooperation agreement with Fivespan Partners following an activist campaign that threatened to escalate into a proxy contest at the company’s December 2026 annual meeting.
The activist hedge fund had sought board representation through director nominations and had also submitted a shareholder proposal and a books-and-records inspection demand. The campaign followed a significant deterioration in Stride, Inc.’s share price after operational challenges disrupted its growth trajectory.
A technology-platform rollout in 2025 contributed to higher student withdrawals and weaker enrollment growth. As a result, the stock has come under pressure, losing more than 50% of its market value from its 2025 highs. What’s next for the new Stride CEO?
Fivespan’s campaign also focused on capital allocation and corporate governance. Stride, Inc. had accumulated about $1.03 billion in cash and marketable securities as of June 30, 2026, making its capital structure and excess-cash deployment important issues for shareholders. The cooperation agreement requires the company to establish a Capital Allocation Committee to review its capital structure and allocation priorities. LRN shares returned around 15% so far in 2026.
7. WEX Inc. (NYSE:WEX)
Activist Investor: Impactive Capital
Number of Hedge Fund Holders: 40
WEX Inc. (NYSE:WEX) has performed strongly since it reached a cooperation agreement with activist investor Impactive Capital in May. The stock is up about 22% year-to-date, outperforming the broader market. The agreement ended a contentious proxy battle over board representation and corporate strategy.
The activist investor had criticized the company’s operating performance, governance, and strategic direction. Its campaign focused on pushing management to improve pricing discipline, reduce costs, and simplify operations. It also called for separating the company’s employee benefits business. The activist also highlighted WEX’s underperformance relative to industry peers.
As part of the agreement, WEX Inc. agreed to appoint three new independent directors to its board: Kurt Adams, Ellen Alemany, and Lauren Taylor Wolfe, co-founder and managing partner of Impactive Capital. The board was also expanded to 11 directors, with Impactive securing a seat for its co-founder. Is WEX a good stock to buy?
WEX Inc. also agreed to separate the roles of chairman and chief executive officer, a significant corporate governance change. In exchange, Impactive withdrew its competing director nominations and ended its proxy solicitation, agreeing to support the revised board slate.
6. Viasat, Inc. (NASDAQ:VSAT)
Activist Investor: Carronade Capital Management
Number of Hedge Fund Holders: 50
Viasat, Inc. (NASDAQ:VSAT) has seen its fortunes turn positive after reaching a cooperation agreement with activist investor Carronade Capital Management in May. The stock has nearly doubled after a 90%+ year-to-date rally, dwarfing the 25% gain for the Insider Monkey Billionaire Index.
This outperformance contrasts sharply with months of pressure from the investment firm to unlock shareholder value through strategic changes. Carronade had been pressing the company to separate its Defense and Advanced Technologies (DAT) business from its satellite communications operations. Explore Viasat cash generation prospects.
The activist argued that separating the businesses could unlock as much as $11 billion in shareholder value, claiming the market was undervaluing Viasat, Inc.’s defense operations. Additionally, it pushed management to accelerate its review of strategic alternatives and improve capital allocation.
The agreement represents a negotiated resolution without a prolonged proxy fight. By securing two additional directors with technology, financial, and strategic transaction experience, Viasat, Inc. strengthened its strategic review process while giving the activist investor a greater voice in board-level oversight.
5. Lululemon Athletica (NASDAQ:LULU)
Activist Investor: Chip Wilson/ Elliott Investment Management
Number of Hedge Fund Holders: 51
Lululemon Athletica (NASDAQ:LULU) underperformance drew heightened activist-investor pressure from founder Chip Wilson. The co-founder agitated for changes to improve the retailer’s performance and restore shareholder value.
The activist campaign focused on leadership changes, board composition, product strategy, and restoring Lululemon’s brand appeal amid slowing growth and increased competition from rivals. The stock has already lost nearly 50% in the market year-to-date. Has LULU lost its Mojo?
In May, Wilson, who owns about 8.7% of the company’s outstanding shares, reached an agreement with the company to end a contentious proxy battle over the company’s board composition, leadership, and strategic direction. As part of the deal, the company agreed to appoint Wilson nominees to the board.
Lululemon Athletica also agreed to appoint another independent director with expertise in apparel products and branding. In return, Wilson agreed to customary standstill, voting, and non-disparagement provisions for approximately 18 months. The agreement limits his ability to launch another proxy campaign or publicly criticize the company during the agreed period. Why did Lululemon cut its guidance?
Meanwhile, Lululemon Athletica has yet to reach an agreement with Elliott Investment Management, which holds a stake worth more than $1 billion. The activist investor pushed for former Ralph Lauren executive Jane Nielsen to become CEO, believing her turnaround and operational experience could help revitalize the business.
4. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Activist Investor: Elliott Investment Management
Number of Hedge Fund Holders: 52
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) reached a cooperation agreement with activist investor Elliott Investment Management early in the year, averting a potential proxy fight. The activist had waged a campaign arguing that the stock was significantly undervalued following years of strategic missteps, weak operational execution, and underperformance relative to competitors.
The activist investor called for a comprehensive board overhaul. It had also pushed for a new business plan focused on improving revenue generation and cost controls. Elliott also criticized the board’s oversight and management succession decisions, including the appointment of former Subway chief John Chidsey as CEO
The cooperation agreement resulted in the appointment of five new independent directors and the resignation of four existing board members. CEO John Chidsey also became chairman, while former British Airways CEO Alex Cruz assumed the role of lead independent director
Norwegian Cruise Line Holdings Ltd. opted for a negotiated resolution rather than risk a potentially costly proxy contest at its 2026 annual shareholder meeting. Elliott’s greater-than-10% economic interest gave it considerable influence, while its willingness to take the campaign directly to shareholders created additional pressure on the board.
Despite the agreement, Norwegian Cruise Line Holdings Ltd. has remained under pressure, underperforming the broader market as the stock has slumped 23% year to date. Is NCLH a long-term stock under $20?
3. DexCom, Inc. (NASDAQ:DXCM)
Activist Investor: Elliott Investment Management
Number of Hedge Fund Holders: 55
DexCom, Inc. (NASDAQ:DXCM) faced activist-investor pressure early in the year from Elliott Investment Management. The activist investor, which acquired a significant stake in the continuous glucose monitoring (CGM) manufacturer, pushed for board and operational changes.
Elliott’s activist campaign centered on improving DexCom, Inc.’s operational execution, corporate governance, and ability to capitalize on the expanding CGM market. It also reiterated that the company can sustain double-digit growth while improving margins and earnings as the CGM market expands. How is DexCom’s growth outlook?
Rather than allowing the campaign to escalate into a prolonged public battle, the company reached an agreement. Elliott secured an agreement to appoint two independent directors with experience in medical technology and large-scale operations. The company also renamed its board’s Technology Committee the Operations and Innovation Committee and expanded its focus to include quality, operations, and innovation.
Following the settlement, DexCom, Inc. has rallied, with shares up more than 20% year to date, outperforming the broader market amid heightened volatility.
2. CarMax, Inc. (NYSE:KMX)
Activist Investor: Starboard Value
Number of Hedge Fund Holders: 58
CarMax, Inc. (NYSE:KMX) has significantly outperformed the broader stock market, with shares gaining approximately 38.4% year to date compared to a 10% gain for the S&P 500 over the same period. The outperformance follows the company’s agreement with activist investor Starboard Value after negotiations over the used-car retailer’s operational performance, cost structure, and pricing strategy.
The agreement helped the company avoid a potentially contentious proxy fight at its 2026 annual shareholder meeting. It also allowed the activist investor greater influence over the company’s board and strategic direction. Explore CarMax earnings turnaround.
The activist ultimately nominated its CEO, Jeffrey Smith, and William (Bill) Cobb to CarMax’s board. In exchange for the planned board additions, Starboard agreed to withdraw its director nominations, effectively ending the potential proxy battle.
Starboard Value had argued that operational weaknesses and declining performance were preventing the company from realizing its full potential. Its proposals included the overhauling of CarMax, Inc.’s pricing strategy to make used vehicles more competitive. It also called for improvements to the digital customer experience and the online vehicle purchasing process.
1. Synopsys, Inc. (NASDAQ:SNPS)
Activist Investor: Elliott Investment Management
Number of Hedge Fund Holders: 85
Synopsys, Inc. (NASDAQ:SNPS) faced activist pressure early in the year after Elliott Investment Management built a multibillion-dollar stake in the semiconductor design software company. The investor argued that the company had significant opportunities to improve operational execution, increase profitability, and unlock shareholder value.
It waged a campaign focused on the company’s margins and financial performance, particularly compared with rival Cadence Design Systems. Elliott believed Synopsys, Inc. was not fully capitalizing on its position in the electronic design automation market despite growing demand for semiconductor design. The activist reportedly initially sought three board seats as part of its engagement with management.
In May, Synopsys, Inc. inked an agreement with Elliott ending the initial phase of the activist campaign. The agreement resulted in Elliott Managing Partner Jesse Cohn joining the Synopsys board, as the hedge fund also accepted customary standstill and voting commitments. Is SNPS growth worth a premium?
The agreement gives the activist investor direct board representation at a major semiconductor technology company, providing an avenue to influence corporate strategy, operational execution, and capital allocation.
READ NEXT: 10 Activist Target Stocks with High Cash and Low Valuation and 10 Best Performing AI Stocks of 2026
