We agree with activists on these two: Corteva and Ovintiv

Article Excerpt

Activist investors have an uneven record when it comes to boosting shareholder value. It’s why we independently assess all companies—including those targeted by activists—before recommending them to our readers. In the case of Corteva and Ovintiv, we feel the participation of activists will ultimately pay off for investors. CORTEVA INC. $45 is a buy. The company (New York symbol CTVA; Manufacturing sector; Shares o/s: 743.5 million; Market cap: $33.5 billion; Dividend yield: 1.2%; Takeover Target Rating: Medium; www.corteva.com) is a leading maker of seeds and crop-protection chemicals. On June 1, 2019, DuPont de Nemours Inc. (New York symbol DD), formerly known as DowDuPont, set up Corteva (its agriculture business) as a separate company. DuPont shareholders received one Corteva share for every three shares they held. Activist investor Starboard Value, which owns about 1.6% of Corteva’s outstanding shares, believes that Corteva CEO Jim Collins has not delivered adequate value for shareholders and should be replaced. Furthermore, it feels the current board has failed to live up to its…