Jana Partners takes new stakes in Wolfspeed, QuidelOrtho in Q1

Jana Partners takes new stakes in Wolfspeed, QuidelOrtho in Q1

In the dynamic world of finance and technology, two notable activist investors, Jana Partners, have recently disclosed new stakes in Wolfspeed (WOLF) and Quidel-Ortho (QDEL) [1]. Wolfspeed, a leading semiconductor company specializing in silicon carbide technologies, and Quidel-Ortho, a renowned diagnostic company, have both experienced significant share price increases following these announcements [1].

Jana Partners' interest in Wolfspeed is not surprising, given the company's unique position as the world's leading producer of silicon carbide and its significant market share [2]. Wolfspeed's extensive experience in manufacturing this challenging and expensive substrate, which requires advanced epitaxial growth, high-temperature baking, and ion implantation, gives the company a competitive advantage in the global market [2]. This competitive edge, coupled with the increasing demand for Wolfspeed's materials and power devices in various industries, including electric vehicles, motor drives, power supplies, solar, and transportation applications, positions the company well for future growth [2].

However, despite Wolfspeed's strong fundamentals, the company has underperformed its peers in recent years, with negative total shareholder returns over the past one-, three-, five- and 10-year periods [2]. To enhance value for its shareholders, Jana Partners has urged Wolfspeed to explore strategic alternatives, including a potential sale of the company [1]. This move could be a strategic one, as Wolfspeed's substantial moat in silicon carbide and its continued growth prospects make it an attractive acquisition target for larger industry players [1].

In contrast, Jana Partners' interest in Quidel-Ortho, a leading diagnostic company, may stem from the company's growing importance in the global health crisis [1]. With the COVID-19 pandemic continuing to impact the world, the demand for rapid and accurate diagnostic tests has increased significantly, and Quidel-Ortho's products are at the forefront of this trend [1]. This heightened demand, coupled with the company's strong fundamentals and growth prospects, make it an attractive investment opportunity for Jana Partners [1].

In conclusion, Jana Partners' new stakes in Wolfspeed and Quidel-Ortho reflect the firm's commitment to identifying promising investment opportunities in the technology and healthcare sectors [1]. With both companies boasting strong fundamentals and significant growth prospects, Jana Partners' strategic interventions could unlock significant value for their shareholders.

[1] Seeking Alpha. (2023, April 25). Jana Suggestions for Wolfspeed Seem Like a Wish List: Analyst. https://seekingalpha.com/news/4092146-jana-suggestions-for-wolfspeed-seem-like-a-wish-list-analyst
[2] NBC Washington. (2023, April 25). Activist Jana Partners Calls for a Strategic Review at Wolfspeed: Here's How It May Develop. https://www.nbcwashington.com/news/national-international/activist-jana-partners-calls-for-a-strategic-review-at-wolfspeed-heres-how-it-may-develop/3602956/