Starboard Value Lp Reveals New Activist Position in RealD (RLD)


Managed by Jeffrey SmithStarboard Value Lp disclosed a new activist stake in RealD (NYSE:RLD). According to a recent filing with Securities and Exchange Commission, Starboard now owns 3.10 million shares, a stake of 6.30% in the company.

Jeff Smith with sword

Founded in 2003, RealD (NYSE:RLD) is a global licensor of 3D and other visual technologies to motion picture exhibitors which show 3D motion pictures and alternative 3D content. The world’s most widely used 3D cinema technology, RealD 3D is available on more than 25,000 cinema screens around the world. Operating in the cinema, consumer electronics, and professional segments, RealD also offers active and passive eye-wear to content providers and consumer electronics manufacturers to enable the delivery and viewing of 3D content. In 2012, the company generated profits of $36.87 million or $0.68 per share, compared losses of $9.69 million or $0.19 per share in the following year. RealD (NYSE:RLD)’s stock price has nearly doubled in the past 6 months to a current price of around $11.70 per share, a number which is close to the average target price of $11.33 provided by analysts. Expected to produce $0.37 losses per share this year, RealD is estimated to shrink its losses to $0.12 per share by 2015. Mean analyst recommendations for the company’s stock diverge, some suggesting to ‘Hold,’ while others to ‘Buy.’

Brian Bares‘ Bares Capital Management holds a position of more than 8.00 million shares in RealD (NYSE:RLD). Rishi Bajaj, Toby Symonds, and Steve Tesoriere‘s Altai Capital is also owns a significant stake of 4.53 million shares in the company.

Founded by Jeffrey Smith in 2002 via a spin-off from Ramius, Starboard Value Lp mostly focuses on small-cap stocks. Office Depot Inc (NYSE:ODP) constitutes the largest share in the fund’s almost $2.00 billion worth equity portfolio, the fund holding a position of 43.45 million shares in the company. Recently, Starboard Value raised its stake in Unwired Planet Inc (NASDAQ:UPIP) to 10.50 million shares.

Disclosure: none