Delivery Hero surges 15% as activist Sachem Capital built significant stake in company 📈

Germany food-delivery giant Delivery Hero (DHER.DE) rallies today as much as 15% after activist fund Sachem Head Capital Fund revealed its 3.4% stake in the company, citing undervaluation and potential changes in the Board because activists may want to join the Board of Directors. The market see this situation as a positive catalyst for the company current valuation and higher chance for profitability in the future. The fund may want to replace current CEO, Niklas Östberg according to Bloomberg anonymous sources. The company surged during 2020-2021 period due to Covid-19 pandemic door-to-door delivery trends, but higher debt pile and lower revenues in the inflation environment, as well as profitability problems made company valuation lower.

DHER.DE (D1)

As we can see, shares price is today above SMA200 (red line) first time since August 2023 and may bring trend reversal. The biggest resistance zone is located at 46 EUR level (23.6 Fibonacci retracement of the downward wave from 2020/2021, and local 2023 highs).

Source: xStation5