Activist investors have increasingly targeted companies with complex corporate structures, underperforming business divisions, or undervalued assets. The argument is that breaking up businesses or spinning off non-core operations could help unlock much-needed shareholder value.
The campaigns have mostly focused on companies whose individual business units are believed to be worth more on their own than as part of a larger organization. By pushing for divestitures, or even complete corporate breakups, the activist investors have sought to streamline operations and close valuation gaps. Explore some of the top stock picks by activist investor Jana Partners.
Some of the targeted companies own valuable businesses, minority stakes, real estate, and other assets that are not fully reflected in their stock prices. Consequently, activist hedge funds have been pushing the companies to sell the minority stakes or monetize valuable subsidiaries. There have also been calls to divest non-core operating divisions and exit businesses that consume capital without generating attractive returns. Instead of fighting with activist hedge funds, boards have been more inclined to settle with them since 2022. You can read our article about the 10 Companies That Recently Settled with Activists here.
The recovery in mergers and acquisitions is another major catalyst behind the rise in M&A-focused activism. While 179 activist campaigns launched in the first nine months of the year, that was a 7% decline from 192 campaigns in the same period last year.
According to a Q3 2026 review by Harvard Law School’s corporate governance program, 44% of activist demands in 2026 were M&A-related, while demands specifically calling for companies to sell themselves reached a record 22% of all demands.
With that in mind, let’s take a look at some of the stocks attracting heightened activist investor interest as potential spinoff or breakup plays.
Our Methodology
To compile a list of the Top 10 Activist Target Stocks for Spin-offs or Breakups, we scanned the internet and compiled a list of stocks under heightened activist investor pressure. We trimmed the list by focusing on companies that the investors believe would generate more value if they sold parts of the business or the entire companies. Finally, we ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them 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. Knife River Corporation (NYSE:KNF)
Activist Investor: Starboard Value
Number of Hedge Fund Holders: 12
Knife River Corporation (NYSE:KNF) is attracting strong activist-investor interest owing to its vertically integrated construction materials business, regional market positions, and potential opportunities to unlock value through portfolio optimization. It is billed as the fourth-largest producer of sand and gravel in the US, backed by more than 100 ready-mix concrete plants, more than 50 asphalt terminals, and more than 200 aggregate sites.
Starboard Value is the activist hedge fund that is pushing management to improve profitability or consider strategic alternatives, including an outright sale of the company. According to the hedge fund, the robust asset portfolio could appeal to large construction material companies looking to expand their portfolios.
The hedge fund’s argument also centers on the gap between Knife River Corporation’s profitability and that of its peers. Its adjusted EBITDA margin was approximately 15% in the quarter ended June 30, compared with margins approaching 30% at some industry peers.
The activist investor believes Knife River Corporation’s assets and market positions should support substantially better profitability. If management cannot deliver the targeted improvements, it also wants the board to consider strategic alternatives, including a sale. Explore Knife Q1 results.
9. Independence Realty Trust, Inc. (NYSE:IRT)
Activist Investor: Irenic Capital Management
Number of Hedge Fund Holders: 25
Independence Realty Trust, Inc. (NYSE:IRT) has faced significant share-price pressure this year, with its stock declining approximately 15%. The company has also emerged as an activist-investor target, with Irenic Capital Management pushing the board to pursue an outright sale to unlock shareholder value.
The activist campaign centers on the belief that Independence Realty Trust, Inc. could unlock greater shareholder value through a strategic sale to another real estate investor or financial sponsor. The activist investor believes strategic buyers could acquire the company for $18 to $20 per share, representing a meaningful premium to its prevailing share price.
Irenic Capital has also urged the board to abandon its proposed $8.1 billion acquisition of Centerspace and explore selling the entire company. The disagreement largely concerns the company’s geographic investment strategy. Explore the proposed Centerspace acquisition and what it means.
Independence Realty Trust, Inc. has historically concentrated on Sun Belt apartment markets, which Irenic believes offer more attractive demographic and growth characteristics. The proposed Centerspace acquisition would broaden its exposure to Midwest and Mountain West markets.
8. Ashland Inc. (NYSE:ASH)
Activist Investor: Ancora Advisors and Cruiser Capital Advisors
Number of Hedge Fund Holders: 26
Ashland Inc. (NYSE:ASH) is attracting strong activist-investor interest because of its robust portfolio of specialty chemical businesses and potential for portfolio simplification. The company operates under four principal business segments: Life Sciences, Personal Care, Specialty Additives, and Intermediates.
Ancora Advisors and Cruiser Capital Advisors are the two activist investors urging the company to explore a potential sale of the entire company rather than pursue a conventional spin-off or breakup. Explore Ashland growth prospects.
In June 2026, Ancora argued that Ashland Inc.’s individual businesses could be worth considerably more to strategic buyers and private equity firms than their value under the existing corporate structure. It estimated that a transaction could generate at least $76 per share, representing an approximately 33% premium to the share price at the time.
Cruiser Capital argued that the company lacks the scale needed to maximize shareholder value as an independent company. It also highlighted the potential for buyers to eliminate corporate overhead and generate at least $100 million in synergies through an acquisition.
In August, Bloomberg reported that Ashland Inc. had engaged Citigroup and Lazard to explore a potential sale amid the soaring activist pressure.
7. H.B. Fuller Company (NYSE:FUL)
Activist Investor: Ancora Holdings Group and Engine Capital
Number of Hedge Fund Holders: 28
H.B. Fuller Company (NYSE:FUL) stands out as an interesting activist-investor target because of its diversified specialty adhesives business, global operating footprint, and potential opportunities to unlock shareholder value through portfolio simplification. Ancora Holdings Group and Engine Capital are the two activist hedge funds pushing the company to consider strategic alternatives.
Ancora Holdings initially proposed acquiring the company’s Building Adhesive Solutions (BAS) business for $1.1 billion to $1.2 billion. It subsequently increased its proposal to $1.2 billion to $1.4 billion in cash. The company rejected the revised proposal on October 19, arguing that it undervalued the business. Explore why H.B. Fuller rejected the offer.
Engine Capital has urged H.B. Fuller Company to conduct parallel strategic reviews of its Building Adhesive Solutions segment and the entire company. The hedge fund believes a potential sale could deliver a better outcome than management’s standalone strategy.
On October 27, Ancora escalated its campaign by calling for H.B. Fuller Company to explore a sale of the entire company. It also indicated that it was reserving its rights regarding a potential acquisition proposal for the whole business.
A spinoff or breakup is seen as an ideal way to unlock value, as the company generated $3.47 billion in fiscal 2025 revenue through three operating segments. The businesses Hygiene, Health and Consumable Adhesives, Engineering Adhesives, and Building Adhesive Solutions serve different end markets and have different growth and profitability characteristics. Is H.B. Fuller a Bargain?
6. Vail Resorts, Inc. (NYSE:MTN)
Activist Investor: Oasis Management
Number of Hedge Fund Holders: 40
Vail Resorts, Inc. (NYSE:MTN) has emerged as a potential activist-investor target because of its vast portfolio of ski resorts, substantial real estate interests, and multiple revenue streams. Activist investor Oasis Management has accumulated approximately a 9.6% stake in the company.
Initially, the investor claimed it was pushing for significant changes to the company’s board and business strategy. As part of its campaign, the investor argues that Vail Resorts, Inc. controls an irreplaceable portfolio of 42 mountain resorts whose value is not being fully realized. What is Vail Resorts worth?
The activist hedge fund had initially attracted attention amid claims it was considering selling some of the company’s mountain resorts. However, its November 2, 2026 shareholder communication clarified that it wants to keep the company intact.
The campaign has nevertheless raised the possibility of asset divestitures. That’s because Billionaire Matthew Prince has publicly expressed interest in acquiring Park City Mountain Resort. The Cloudflare CEO has also indicated willingness to invest $500 million in the property. He has also advocated separating individual mountain resorts from Vail’s broader operating platform.
5. Bath & Body Works, Inc. (NYSE:BBWI)
Activist Investor: Barington Capital Group
Number of Hedge Fund Holders: 40
Bath & Body Works, Inc.’s recognizable global brand, strong cash-generation potential, and depressed share price are driving activist investor pressure. Barington Capital Group is pushing management to explore a potential sale of the entire business to unlock shareholder value.
While the stock has rallied about 11% year-to-date, Barington CEO James Mitarotonda believes the company is undervalued given its strong market position and established brand. The activist investor also wants the company to pursue aggressive share repurchases and improve revenue growth. Barington has indicated that it plans to engage the board and is considering seeking board representation.
According to the activist investor, persistent leadership turnover has only resulted in depressed valuation despite durable brand equity and strong cash flow generation. Bath & Body Works, Inc. generated $316 million in operating cash flow during the first half of the year, compared with $145 million in the same period of fiscal 2025. As of August 1, 2026, it held approximately $794 million in cash and cash equivalents. Has BBWI returned to growth?
4. LKQ Corporation (NASDAQ:LKQ)
Activist Investor: Ananym Capital
Number of Hedge Fund Holders: 50
LKQ Corporation (NASDAQ:LKQ) 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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