Paul Singer Goes Activist on Riverbed Technology Inc (RVBD)

Paul Singer goes activist on Riverbed Technology, Inc. (NASDAQ:RVBD). In a recent filing with the Securities and Exchange Commission, Elliott Management has announced that it has forwarded the board of directors a proposal containing certain steps it expects Riverbed Technology to take in order to increase shareholder value. According to the same filing, Elliott has economic and voting power in approximately 10.4% of the company’s shares outstanding.

Riverbed Technology, Inc. (NASDAQ:RVBD) has caught the attention of several hedge funds that we track. William B. Gray, the manager of Orbis Investment Management, is bullish on this stock. During the last quarter, Orbis increased its stake by 59% to 11.8 million shares reportedly worth $173 million. Paul Marshall and Ian Wace have also increased their holding. According to its latest 13F report, Marshall Wace LLP holds 571,608 shares valued at $8.3 million. Steven Cohen is not so optimistic though. His fund, SAC Capital Advisors, has trimmed its exposure to Riverbed Technology and at the end of September 2013 reported ownership of 1.6 million shares valued at a little over $23 million.

Riverbed Technology, Inc. (NASDAQ:RVBD) offers information technology services. In 2013, the stock has fallen 32% to an April low of $13.83 and has been trending sideways since then. With a current share price of $17.45, the company has a market cap of $2.83 billion and does not pay a dividend. The stock has a forward Price to Earnings (P/E) ratio of 15.7 and a beta of 2.29, which makes it a fairly volatile one.

On November 1st, Riverbed Technology, Inc. (NASDAQ:RVBD) released its financial report for the third quarter of 2013. The company posted revenues of $153 million, a 6% year-over-year increase, and Earnings Per Share (EPS) of $0.02. For the current quarter, analysts expect Riverbed to register revenues of $273 million and earnings of $0.26 per share.

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