Shares of Starbucks (SBUX) stock experienced a boost on Monday following reports that activist investor Starboard Value has acquired a stake in the renowned coffee chain. This news comes after a challenging year for Starbucks, with slowing sales prompting the company to revise its guidance.

According to the Wall Street Journal, New York-based hedge fund Starboard Value has purchased shares in Starbucks with the intention of improving the coffee giant's stock price. While the exact size of Starboard's stake and specific plans remain undisclosed, it is evident that the activist investor sees potential for positive change within the company.

Starboard Value, known for its holdings in various stocks including GoDaddy, Salesforce, and News Corp, has now added Starbucks to its portfolio, signaling confidence in the company's potential for growth and improvement.

Meanwhile, Starbucks is also in discussions with another activist investor, Elliott Investment Management. Elliott has already built its own position within the company and has been advocating for changes behind the scenes. There have been reports that Elliott is vying for representation on Starbucks' board, and there is a possibility of a proxy battle for a board seat.

Former CEO Howard Schultz retains the position of the top shareholder in Starbucks, while Laxman Narasimhan took over as CEO in March 2023. The involvement of both Starboard Value and Elliott Investment Management suggests a drive for positive transformations within the company.

Starbucks stock reacted positively to the news, with a 2.5% increase on Monday. However, it's important to note that shares had experienced a decline of over 21% in 2024 due to challenges in sales performance, prompting the company to revise its guidance.

In a separate development, KeyCorp (KEY) announced on Monday that it has sold a 14.9% stake to The Bank of Nova Scotia, also known as Scotiabank, for approximately $2.8 billion. This agreement includes the exploration of potential opportunities in the commercial real estate sector.

The investment from Scotiabank is expected to provide a significant boost to KeyCorp's capital strength and solvency, with estimations suggesting a 195 basis points increase in its common equity tier 1 (CET1) capital ratio. KeyCorp also projects a tangible book value per share increase of more than 10%.

Following the announcement, shares of KeyCorp rallied approximately 16% early Monday, indicating investor confidence in the strategic partnership between the two financial institutions.

Overall, these developments involving Starbucks and KeyCorp highlight the importance of strategic investments and activism within the business world. The involvement of activist investors such as Starboard Value and Elliott Investment Management can drive significant changes within companies and potentially unlock their true growth potential.

Disclaimer: The information contained herein should not be construed as financial advice and is intended for informational purposes only. The accuracy, timeliness, and completeness of the information cannot be guaranteed.