Starboard Value exits CRM and ADSK for 2 distressed consumer plays

Starboard Value fully exited its Salesforce and Autodesk positions in the first quarter of 2026 and opened new stakes in Lamb Weston and CarMax, a 13F filing shows.

The activist hedge fund's campaign at Salesforce pushed Marc Benioff toward margin expansion and cost discipline, the filing shows. Salesforce posted Q1 FY27 earnings per share of $3.88, beating the $3.13 consensus by 24 percent, and funded a $25 billion accelerated share repurchase that cut diluted share count to 871 million from 970 million. The stock is down about 35 percent year to date, suggesting Smith trimmed before the broader software valuation reset accelerated.

Starboard also added to existing positions in Riot Platforms and TripAdvisor. Riot Platforms has surged 90 percent year to date, anchored by a $636 million lease with Advanced Micro Devices over 10 years. TripAdvisor recorded $3.3 million in shareholder activism costs in the first quarter, though no fund is named in the filing.

Lamb Weston is the classic Starboard setup. The stock is down nearly 46 percent over five years, trades at a forward price-to-earnings ratio of 13 and is mid-restructuring. The "Focus to Win" plan targets more than $250 million of savings by fiscal year-end 2028. The company posted Q3 FY26 adjusted EPS of 72 cents versus the 61-cent consensus, a third straight beat, and raised FY26 net sales guidance to $6.45 billion to $6.55 billion. GAAP net income fell 63 percent year over year on restructuring charges and a raw potato write-off.

CarMax is even more distressed, with shares down nearly 56 percent over five years. Starboard previously disclosed a $350 million stake and nominated two directors, pushing for a better digital experience, faster cost cuts and dynamic pricing. New Chief Executive Officer Keith Barr took over March 16 and raised the SG&A exit-rate reduction target to $200 million. KMX has rallied 26 percent year to date, indicating the market is starting to price in execution.

Smith's pattern targets distressed names with identifiable cost-cutting catalysts. CarMax already shows the activist fingerprint with a new CEO, raised savings target and board reshuffle. Lamb Weston has the operational rigor but lacks confirmed activist demands. The more durable lesson is understanding why Smith left Salesforce, where the activist work was done, and why he is buying Lamb Weston and CarMax, where the work is just beginning. Investors will watch for Starboard's next 13F filing for further positioning changes.

This article is for informational purposes only and does not constitute investment advice.