Jeffrey Smith, Starboard Value Buy Some More RealD (RLD) Shares

Jeffrey Smith believes it is still a good time to buy RealD (NYSE:RLD) shares and has further increased his fund’s investment in the company. As reported in a recent filing with the Securities and Exchange Commission, Smith’s Starboard Value has added 625,000 more shares of RealD (NYSE:RLD) to its equity portfolio, taking its holding to 4.55 million shares, which give it control over 9.1% of the company’s common stock.

Brian Bares is still bullish on RealD (NYSE:RLD), having slightly increased his fund’s holding of the stock during the second quarter of 2014. As a result, Bares Capital Management has reported ownership of 8.16 million shares in its latest 13F filing, a position worth roughly $104 million. Mark Broach is also keeping an eye on this stock, with his fund, Manatuck Hill Partners, holding approximately 1.56 million shares of RealD (NYSE:RLD), valued at $19.9 million. Rishi Bajaj, Toby Symonds, and Steve Tesoriere, the managers of Altai Capital, have, on the other hand, chosen to reduce their exposure to the stock and have slashed their position by 38%. As of June 30, Altai Capital owns 2.83 million shares valued at $36.1 million.

A licensor of three dimensional technologies, RealD (NYSE:RLD) has a market cap of $495 million and is traded at a forward Price-to-Earnings (P/E) ratio of 55.00. The company has reported revenues of $55.4 million and a earnings of $0.11 per share for the three months ending June 30, 2014. Analysts expect revenues of $43.4 million and a loss of $0.07 per share for the current quarter.

Jeffrey Smith has been very busy recently, disclosing several notable moves. He has reduced his fund’s investment in DSP Group, Inc. (NASDAQ:DSPG), taking it to 1.35 million shares, which account for 6.1% of the company’s total number of shares outstanding. Parallel to that, Smith has been busy engaging in a struggle with the management Darden Restaurants, Inc. (NYSE:DRI), as he seeks to improve the company’s management and operational results. In a letter addressed to the company, Smith has summoned the remaining shareholders to vote for a change in the leadership of the company.

Disclosure: none.