Activist investor takes 6.5% stake in GoDaddy.

Investment company Starboard has made a significant investment in shares of GoDaddy (NYSE: GDDY).

Today, the group filed a 13D with the SEC, disclosing its ownership stake.

Shares of GoDaddy are up about 8% today on the news.

In a story today, The Wall Street Journal

referred to Starboard as an “activist investor” and reports, “Starboard typically pushes the companies it invests in to boost profit margins or improve performance in other ways and often seeks seats on their boards.”

This isn’t Starboard’s first investment in a domain name company; it invested in Web.com in 2018.

GoDaddy has benefited from the move online during the pandemic, but its share price hasn’t followed. Even after today’s stock price jump, shares trade below their 2018 peak.