Outerwall Gains 7% As Activist Investor Discloses 14% Stake

Shares of Outerwall Inc (NASDAQ: OUTR), a provider of automated retail solutions such as The Redbox and Coinstar, surged higher by more than 7 percent on Monday after Engaged Capital, an activist investor, disclosed a 14.1 percent stake in the company.

Engaged Capital commented in its regulatory filing that Outerwall's stock is "undervalued" and represents an "attractive investment opportunity."

According to Bloomberg, Engaged Capital believes Outerwall could pay investors a higher dividend and lower its costs by outsourcing certain services. In addition, the company could boost its revenue by marketing its data and expanding a trial of gift-card exchanges at retailers that already use Coinstar.