Rimini Street (RMNI) to Discontinue Oracle PeopleSoft Services After Legal Setback

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, markets contributed to strong year-to-date gains, though not without some volatility. As shown by the Russell 2000 Index, small-cap equities increased by 9%, while the broad market Russell 3000 Index increased by slightly more than 6%. Against this backdrop, the strategy trailed the index and returned 8.43% in the quarter compared to 9.27% for the Russell 2000 Index. For more information on the fund’s top picks in 2024, please check its top five holdings.

Diamond Hill Small Cap Fund highlighted stocks like Rimini Street, Inc. (NASDAQ:RMNI), in the third quarter 2024 investor letter. Rimini Street, Inc. (NASDAQ:RMNI) is an IT services company, that offers enterprise software support products and services. The one-month return of Rimini Street, Inc. (NASDAQ:RMNI) was -4.19%, and its shares lost 38.31% of their value over the last 52 weeks.  On October 30, 2024, Rimini Street, Inc. (NASDAQ:RMNI) stock closed at $1.59 per share with a market capitalization of $155.55 million.

Diamond Hill Small Cap Fund stated the following regarding Rimini Street, Inc. (NASDAQ:RMNI) in its Q3 2024 investor letter:

“Other bottom Q3 contributors included Allient, Rimini Street, Inc. (NASDAQ:RMNI) and Enovis. IT services company Rimini Street announced it would wind down its service offerings for Oracle PeopleSoft products — a decision that follows an unfavorable 2023 legal ruling and will likely delay any potential reacceleration in revenue growth for at least a few quarters.”

A businessperson in a technology center, surrounded by software engineers.

Rimini Street, Inc. (NASDAQ:RMNI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Rimini Street, Inc. (NASDAQ:RMNI) at the end of the second quarter which was 13 in the previous quarter. The second quarter revenue of Rimini Street, Inc. (NASDAQ:RMNI) was $103.1 million, down 3r% year-over-year. While we acknowledge the potential of Rimini Street, Inc. (NASDAQ:RMNI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Rimini Street, Inc. (NASDAQ:RMNI) and shared the list of oversold penny stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.