By Katherine Hamilton
Grove Collaborative received a letter from activist investor HumanCo Investments calling for a review of strategic alternatives, including a sale of the company.
HumanCo, which owns more than 5% of Grove, said Tuesday that the health and wellness company is undervalued in the public market due to a lack of investor relevance as a result of its small market capitalization.
The company has not pursued a strategy that balances growth and profitability due to its operational and public cost burden, which can't be reduced as a standalone public company, HumanCo said.
Grove might be valued at a 90% to 140% premium to its current share price, HumanCo said. Grove shares soared 52% to $1.74 post market, and ended the regular trading session down 1.7% at $1.50. Through the close shares are down 16% this year.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
July 08, 2025 16:46 ET (20:46 GMT)
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