Outerwall Gains 7% As Activist Investor Discloses 14% Stake

Shares of

, 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,

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

, 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.