Top 10 Activist Target Stocks for Spin-offs or Breakups

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4. LKQ Corporation (NASDAQ:LKQ)

Activist Investor: Ananym Capital

Number of Hedge Fund Holders: 50

LKQ Corporation underperformance after a 30% slide year to date has left it susceptible to heightened activist investor pressure. Ananym Capital is leading the activist campaign, arguing that the company could generate greater shareholder value by separating its European and North American businesses.

The fund believes the two operations have different strategic characteristics and that LKQ Corporation’s diversified structure has contributed to a sum-of-the-parts valuation discount. Consequently, it wants the company to consider selling or spinning off its European business to concentrate on the North American collision-repair and replacement-parts operations. What’s hurting LKQ financials?

LKQ Corporation has also faced pressure to divest its Specialty segment, which includes Keystone Automotive Operations, a distributor of automotive, recreational vehicle, and marine parts. Last year it hired Bank of America to explore a potential sale of Keystone, which could be worth approximately $1 billion.

Proceeds from divesting European operations could strengthen the balance sheet. Additionally, it expects the funds to help management return more capital to shareholders.

Meanwhile, on October 29, LKQ Corporation announced its board had suspended the broader strategic review, including the Specialty segment sale process. The decision allows incoming CEO Sal Abbate to assess the business and evaluate alternative value-creation strategies.

3. The Cooper Companies, Inc. (NASDAQ:COO)

Activist Investor: Jana Partners

Number of Hedge Fund Holders: 52

The Cooper Companies, Inc. (NASDAQ:COO) stands out as a potential strategic restructuring candidate as it operates two distinct healthcare businesses: CooperVision and CooperSurgical. The substantial profitability difference between the two units has triggered the restructuring argument.

The Cooper Companies, Inc. is a highly profitable contact-lens business, while CooperSurgical has faced operating and strategic challenges. A separation could allow each business to pursue its own investment priorities, capital allocation strategy, and valuation multiple.

Jana Partners is one of the hedge funds increasingly pushing the company to consider selling assets within the CooperSurgical unit to unlock shareholder value. It has also urged the company to engage potential buyers for CooperVision, which manufactures and markets contact lenses, including specialty lenses for astigmatism and presbyopia. Is Jana Partners right?

Activist investment firm Browning West had initially urged the company to restructure itself as a pure-play vision-care company by separating or divesting its CooperSurgical operations.

The Cooper Companies, Inc. has already completed a review of strategic alternatives, including a potential sale of CooperSurgical. However, the board unanimously decided to retain the division because the offers received did not adequately reflect its value.

2. Fiserv, Inc. (NASDAQ:FISV)

Activist Investor: Jana Partners

Number of Hedge Fund Holders: 56

Fiserv, Inc. (NASDAQ:FISV) has underperformed the broader market amid the 20%+ year-to-date selloff. Likewise, it has emerged as a compelling activist-investor target, as operational challenges and diverse financial technology businesses create opportunities to unlock shareholder value through strategic restructuring.

Activist investor Jana Partners believes the company could create more value by divesting non-core businesses and by accelerating cost reductions. It insists that the diversified business portfolio offers opportunities for restructuring and asset monetization. It has specifically called for the company to dispose of non-core operations, appoint directors with relevant payments and banking software experience, and conduct a broader portfolio review. Explore Fiserv Turnaround push.

In July 2026, Jana escalated its campaign by urging Fiserv, Inc.’s board to conduct a formal review of the entire business rather than pursue isolated asset sales. The company operates two major business areas: Merchant Solutions and Financial Solutions.

Beyond asset sales, Jana also wants the company to increase its planned cost savings under Project Elevate from $500 million to approximately $1.25 billion by 2029.

1. Baker Hughes Company (NASDAQ:BKR)

Activist Investor: Ananym Capital Management

Number of Hedge Fund Holders: 74

Baker Hughes Company (NASDAQ:BKR) is an exciting activist-investor target, with a diversified energy technology portfolio that could unlock shareholder value through a business separation. Late last year, activist investor Ananym Capital Management disclosed a stake in the company and urged management to consider spinning off its Oilfield Services & Equipment (OFSE) division.

According to the hedge fund, Baker Hughes Company’s two businesses have different growth profiles, operating dynamics, and investor bases. Therefore, separating them could allow each company to pursue a more focused strategy and potentially command a higher valuation. It also reiterated that this step could push the stock price up by at least 60%. What could drive Baker Hughes earnings cycle?

Since Ananym Capital launched its campaign, the stock has rallied about 9%. Additionally, Baker Hughes Company has completed its $13.6 billion acquisition of Chart Industries, further expanding its exposure to industrial gas processing, thermal management, and data center cooling.

The acquisition changes the original breakup thesis. Rather than having two distinct businesses, the company now has three reporting segments, potentially creating an even more complex valuation structure.

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