Fiserv (NASDAQ:FISV) climbed 5% on Tuesday following a Wall Street Journal report that activist investor Jana Partners has accumulated a position in the payments and financial technology group and is pressing for strategic adjustments.
According to the newspaper, Jana has been holding private talks with the Milwaukee-based company about initiatives aimed at boosting shareholder value. While the size of the activist firm’s holding was not disclosed, the report said Jana believes Fiserv stands to benefit from resilient spending trends among banks.
Fiserv shares fell almost 70% over the past year, hurt by slower expansion in its core merchant solutions segment and intensifying competition across the industry. So far this year, the stock has declined more than 11%.
A significant portion of last year’s selloff followed the arrival of CEO Mike Lyons, who cut earlier profit guidance in an effort to reset market expectations for earnings growth. The revision wiped out roughly $30 billion in market capitalization in a single session.
People familiar with the situation told the Journal that Jana backs Lyons’ strategy, particularly his efforts to improve operational execution and refresh the board. Lyons took over as chief executive in May after departing PNC Financial Services, succeeding Frank Bisignano, who left to join the Trump administration.
The report did not clarify whether Jana intends to seek seats on Fiserv’s board as part of its activist engagement.