On Tuesday, shares of Blue Apron Holding (NYSE:$APRN) started to recover from last week’s earnings report, which flashed numerous red flags. The market is now closed, and Blue Apron closed up 5.4%.
The recovery was more than just dumb luck as well. A lot of the surge had to do with the news that activist investor Jana Partners has taken a stake in the company.
Jana Partners and the Grocery Industry
Jana seems to be doing well for itself, as it has just taken a stake in Whole Foods (NASDAQ:$WFM). For the sale, the hedge fund webbed about $300 million. Additionally, Jana revealed a stake of less than 1% in the company in a filing on Monday. Even though Jana Partners bought 600,000 shares at roughly $9.50, it does not look like the company will be taking an active position with Blue Apron anytime soon.
The Takeaway for Blue Apron
Needless to say, thanks to its disappointing report last week, the food service retailer could really benefit from some help. Even though Jana’s investment helped to bring Blue Apron back to life, the company will still have to do the dirty work of building the business itself.
Featured Image: twitter
