Rovi Corporation (NASDAQ:ROVI) Stock Soars After Company Renews Agreement with Sony

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Shares of Rovi Corporation (NASDAQ:ROVI) are soaring today after the company announced that they have renewed a very important license agreement with Sony this afternoon.

The stock made a major jump after the announcement was made, and continues to crawl higher in mid-day trading. The deal is for multiple years and it will extend an agreement to provide Sony with the rights to use Rovi Corporation’s (NASDAQ:ROVI) entertainment discovery patent portfolio which consists of 5,000 pending or issued patents.

The stock is up 10.40% or $1.65 following the news, hitting $17.51 per share. About 2.78M shares traded hands or up 32.38% from the average. ROVI has declined 6.15% since May 22, 2015 and is currently downtrending. It has underperformed the S&P500 by 3.89%.

From a total of 2 analysts covering Rovi (NASDAQ:ROVI) stock, 1 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $23.0 while the lowest target price is $11. The mean of all analyst targets is $18 which is 2.80% above today’s ($17.51) stock price. Rovi was the topic of 3 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. JP Morgan upgraded shares on August 25 to a “Neutral” rating.

The institutional sentiment decreased to 0.77 in Q2 2015. It’s down 0.26, from 1.03 in 2015Q2. The ratio dived, as 46 funds sold all their Rovi Corporation shares they owned while 73 reduced their positions. 23 funds bought stakes while 69 increased their total positions. Institutions now own 83.01 million shares which is 20.01% less than the previous share count of 103.77 million in 2015Q2.

Engaged Capital Llc holds 6.02% of its total portfolio in Rovi Corporation, equating to 1.00 million shares. Omt Capital Management Llc owns 222,240 shares representing 2.84% of their total US portfolio. Moreover, Kestrel Investment Management Corp has 2.8% of their total portfolio invested in the company, equating to 765,425 shares. The New Jersey-based Tsp Capital Management Group Llc has a total of 0.97% of their portfolio invested in the stock. Rdl Financial Inc, a Virginia-based fund reported 104,268 shares owned.

Since March 20, 2015, the stock had 2 insider buys, and 3 selling transactions for a total of $372,239 in net activity. Welling Glenn W. bought 22,270 shares worth $248,088. Carson Tom bought 13,895 shares worth $148,954. Gutierrez Wesley sold 427 shares worth $4,471. Halt Peter sold 1,184 shares worth $12,396. The insider Sergeeff Pamela A. sold 758 shares worth $7,936.

Rovi Corporation is a digital entertainment technology company. The company has a market cap of $1.36 billion. The Firm is focused on content discovery and personalization through its technology and intellectual property, using data and analytics to monetize interactions across various entertainment platforms. It currently has negative earnings. Content discovery solutions include interactive program guides , search and recommendations, cloud data services and its database of metadata, which includes descriptive information, promotional images or other content that describe or relate to Television shows, videos, movies, music, books, games or other entertainment content.

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