Less than a week after Starboard Value reported a stake in Bill Holdings Inc (NYSE:BILL), a new report links activist hedge fund Elliott Management to taking a stake in the payments company.

BILL shares are climbing after hours. See if it is worth your attention here.

What Happened: Less than a month after reporting quarterly financial results, Bill Holdings looks to be the target of a push for changes at the company.

Activist hedge fund Elliott Management, led by Paul Singer, has built a stake of at least 5% in the company, according to a new report from the Financial Times.

Elliott Management's stake would make the hedge fund one of the five largest investors in the company and could lead to a push for changes from the board of directors or a push for a sale, based on Elliott's past stakes in companies.

The reported stake from Elliott comes after Starboard Value took an 8.5% stake in the company and publicly pushed for changes to the company's board of directors. Starboard said it will nominate four director candidates for Bill's board.

Bill Holdings acknowledged the public pressure from Starboard and said the company was "confident in our ability to drive revenue growth and profitability, and create sustained value for our customers, partners and shareholders."

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Why It's Important: Two activist investors controlling over 13% of the company could lead to a significant push for changes if Starboard and Elliott are on the same page for what changes they seek, including a potential push for a sale.

Bill Holdings specializes in working with small and medium-sized companies and handling payments. The company is working to expand its customer base to larger companies to boost its revenue.

Valued at $34 billion in 2021, Bill Holdings is now worth $5.2 billion. Shares are down 85% from their all-time high.

The payments sector has seen increased interest from larger companies looking to buy smaller rivals that have seen their valuations crushed in recent years.

BILL Price Action: Bill shares are up 5.85% to $53.90 in after-hours trading Tuesday versus a 52-week trading range of $36.55 to $100.19. Shares are down 39.9% year-to-date in 2025.

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Photo: Courtesy Bill Holdings