Shares of 2U (NASDAQ:TWOU) were up 15.6% as of 3:15 p.m. EST Monday after Bloomberg reported an activist investor is planning to pressure the online education platform specialist to consider strategic alternatives.
Citing "people familiar with the matter," Bloomberg says Scott Ferguson's Sachem Head Capital Management has built a position in 2U -- though its sources noted the size of Sachem's stake is unclear -- and "plans to push the company to explore strategic alternatives, including a sale."
The timing of the move is no coincidence. The stock is down more than 70% from its 52-week high set in February. And 2U shareholders are still reeling after the company drastically tempered its short-term growth plans in order to focus on operational efficiency, given increasing competition in its niche. Management also promised at the time that it would provide more details on its plans at its Investor Day presentation slated for this Wednesday, Nov. 6.
You can be sure that we'll be watching closely for those details from 2U later this week, as well as for any updates on Sachem Head's proposals for 2U to resume creating value for shareholders.