Shares rose 8.7% to $184.89 at 9:33 a.m. in New York, expanding this year’s gains to 16%.
In a letter to chief executive officer Darren Jackson released on Wednesday, Starboard said Advance Auto shares could be worth more than $350 each if the company improved margins.
The stock has fallen about 11% since touching a record high in August when it reported better-than-expected quarterly profit, lifted by stronger margins and sales.
The stake would put Starboard among the 10 biggest Advance Auto investors, according to Capital IQ data.
Advance Auto gets about 57% of its sales from garages and service stations that turn to the chain for parts, and the other 43% from do-it-yourself consumer sales. Starboard urged the company to focus on business-to-business sales.