PRIMECAP Management Reveals New Position in Ellie Mae Inc (ELLI)

PRIMECAP Management Company is betting on Ellie Mae Inc (NYSE:ELLI). In a recent filing with the Securities and Exchange Commission, PRIMECAP has revealed opening a position in Ellie Mae, with the fund having acquired 2,029,900 shares, which account for approximately 7.38% of the company’s shares  outstanding.

Ellie Mae Inc (NYSE:ELLI) is a very popular stock among the hedge funds we track. Tremblant Capital, run by Brett Barakett, has increased its stake in the company by 16% during the third quarter of 2013. The fund currently owns 1.8 million shares reportedly worth over $60 million. Spencer M. Waxman is particularly bullish about this stock. His fund, Shannon River Fund Management, has increased its investment in Ellie Mae by 173% during Q3. According to their latest 13F filing, Shannon River holds 1.57 million shares valued at approximately $50 million. Jim Simons has, on the other hand, been decreasing exposure to this stock. Renaissance Technologies has more than halved its position in Ellie Mae and now owns 160,700 shares valued at $5.14 million.

Ellie Mae Inc (NYSE:ELLI) provides software solutions for the mortgage industry. With a current share price of $26.58, the company has a market cap of $730 million and does not pay a dividend. The stock has a trailing Price to Earnings (P/E) ratio of 50.10 and a beta of -0.22.

On November 7th, Ellie Mae posted financial result for the third quarter of 2013. The company registered revenues of $33 million and earnings per diluted share (EPS) of $0.12. The company is expected to perform better in terms of EPS in the current quarter, but revenues are probably going to be smaller. Analysts expect earnings of $0.18 and revenues of $29.8 million.

On November 12, rumors surfaced that Ellie Mae Inc (NYSE:ELLI) is a potential takeover target. Three companies are thought to have offered between $800 million to $1.1 billion for the software company.

Disclosure: none

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