Starboard Value, an activist investor, has reportedly acquired a substantial stake in Kenvue Inc KVUE, the company behind popular consumer products like Tylenol and Listerine.

What Happened: Starboard Value is pushing for changes at Kenvue, which was spun off from Johnson & Johnson JNJ last year and has a market value of over $40 billion, reported The Wall Street Journal, citing people familiar with the matter.

Despite having some of the best consumer brands in the industry, Kenvue’s stock has underperformed its peers and the broader market since its debut over a year ago.

The exact size of Starboard’s position in Kenvue and its specific ideas for the company are not known. Starboard’s founder and CEO, Jeff Smith, is expected to present the firm’s thesis on Kenvue at an activist investing conference in New York on Tuesday.

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Kenvue’s other brands include Aveeno, Band-Aid, Zyrtec, Neosporin, and Neutrogena. The company, led by CEO Thibaut Mongon, recorded over $15 billion in net sales in 2023.

Kenvue and Starboard Value  did not immediately respond to Benzinga‘s request for comment.

Why It Matters: Kenvue’s stock price has remained relatively unchanged this year, in contrast to the S&P 500 index’s 23% increase. The company’s biggest competitors include Haleon, the parent company of Advil, Procter & Gamble, the owner of Pepto-Bismol, and Unilever, the maker of Axe deodorant.

Starboard’s recent investment in Kenvue follows its move to acquire a roughly $1 billion stake in Pfizer Inc., where it is seeking various changes to improve the drugmaker’s performance. This includes the appointment of former Pfizer executives Ian Read and Frank D’Amelio, who have pledged their support for current Pfizer CEO Albert Bourla.

Starboard is known for its active involvement in various sectors, including technology, where it has recently made efforts at companies like Salesforce, Autodesk, and Match Group.

Price Action: Kenvue Inc.’s stock closed at $21.72 on Friday, up 1.26% with a gain of $0.27. Year to date, the stock has risen by 0.70%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote