Imperva Inc. rose 9% after hours and opened on Tuesday up 10% with news that Paul Singer’s Elliot Associates has a stake in the company and is launching an activist campaign.

As SeekingAlpha reports, Elliot announced a 9.8% stake in Imperva, and has begun talking with company executives about their current strategic and operational standing. Imperva develops protection software and services for business applications and databases. Its product tracks user data access and uses their software to detect malicious or unauthorized entry into a client’s data systems.

Elliot believes that IMPV is currently undervalued and offers a valuable service that puts them at a focal point in their respective field. This is some good news for IMPV, which reported an EPS loss of $-0.74 in Q1, higher than our team had expected at the time.

Elliot Management is a well-known activist investor, having announced a stake in LifeLock just last week.  

Imperva currently sits at a Zacks Rank #3 (Hold).

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