Why Shares of Acacia Research Corp Popped Today

Is this meaningful or just another movement?

Travis Hoium
Travis Hoium
Apr 3, 2014 at 12:00AM
Industrials

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of patent licensing firm Acacia Research Corp (NASDAQ:ACTG) jumped 12% in early trading today after the company announced a settlement and licensing deal.

So what: Litigation against Behavioral Recognition Systems was dismissed, and a dispute with Huawei Technologies ended with a settlement and patent license agreement. The big news, though, was a licensing agreement with Motorola Mobility LLC, which also ends disputes between the two companies.  

Now what: The challenge for investors here is that these announcements didn't come with any financial information. For that reason, it's hard to tell what the financial impact will be. At the least, we know the dismissal of the Behavioral Recognition Systems litigation is incrementally bad, but we'll have to see what the upside is in licensing deals when the next earnings report comes out.