Investor Alert



3:20 a.m. Dec. 28, 2021 - By Tomi Kilgore
Mercury Systems adopts 1-year 'poison pill,' following disclosure of Jana Partners acquiring a 6.6% stakeMercury Systems Inc. said Tuesday that it has adopted a one-year shareholder rights plan, also known as a "poison pill," as protection from a hostile takeover during a period in which the aerospace and defense technologies company believes its stock is undervalued. The stock, which were indicated up nearly 4% in premarket trading, has tumbled 37.1% year to date, while the S&P 500 has rallied 27.6% this year. The rights plan comes after the company disclosed on Dec. 23 that in Mercury, saying they believed the shares are "undervalued and represent an attractive investment opportunity." As part of the rights plans, Mercury said it will distribute one "right" for each common share outstanding as of Jan. 10, 2022. "Rights," which gives holders the right to buy preferred shares having a value of twice the market value of common shares, becomes exercisable if a person or group acquires beneficial ownership of 7.5% or more of the outstanding shares. "By adopting the Rights Plan, the board intends to enable all shareholders to realize the full potential value of their investment in Mercury while reducing the likelihood that any person or group gains control of the company without paying full and fair value," the company said in a statement.
2:52 a.m. Dec. 17, 2021 - By Steve Gelsi
Boeing reaches proposed settlement to shareholder lawsuit stemming from 737 MAX fatalitiesBoeing on Friday notified shareholders of a proposed $237.5 million settlement stemming from the two fatal crashes in 2018 of the Boeing 737 MAX. The stockholder derivative action was brought against Boeing's board of directors in a Delaware court in 2019 by plaintiffs Thomas P. DiNapoli, comptroller of New York and the New York State and Local Retirement System and the Fire and Police Pension Association of Colorado. Under the settlement, Boeing's insurers will make a monetary payment of $237.5 million, minus any attorneys' fees and expenses to Boeing, and Boeing shall implement corporate governance measures. The plaintiffs charged the company's directors for being liable for losses incurred by the company and its shareholders because they did not exercise proper oversight over the company's activities. After the crashes, many countries, including the United States, ordered the planes grounded until changes could be made. Boeing shares fell 0.6% in premarket trades.
8:42 a.m. Dec. 7, 2021 - By Victor Reklaitis
Biden tells Putin that U.S. will respond if Russia escalates military action against UkrainePresident Joe Biden on Tuesday delivered a warning to Russian President Vladimir Putin over a potential Russian invasion of Ukraine, according to a White House readout of a video call between the two leaders. Biden "voiced the deep concerns of the United States and our European Allies about Russia's escalation of forces surrounding Ukraine and made clear that the U.S. and our Allies would respond with strong economic and other measures in the event of military escalation," the White House said in a statement. The American president also "reiterated his support for Ukraine's sovereignty and territorial integrity and called for de-escalation and a return to diplomacy," the statement said. "The two presidents tasked their teams to follow up, and the U.S. will do so in close coordination with allies and partners." to deliver a message along those lines as he seeks a diplomatic solution to deal with the tens of thousands of Russian troops massed near the Ukraine border.
2:34 a.m. Nov. 16, 2021 - By Steve Gelsi
Boeing gets 737 MAX order worth $9 billion from Akasa AirNew Indian carrier Akasa Air, a brand of SNV Aviation, on Tuesday said it placed a $9 billion order for 72 737 MAX jets from Boeing Co. . Akasa Air plans to launch commercial flights in the summer of 2022 with its fleet of 737s, "to meet the growing demand across India," the company said. Shares of Boeing rose 0.3% in pre-market trades. SNV Aviation is backed by Indian billionaire Rakesh Jhunjhunwala.
1:42 a.m. Nov. 9, 2021 - By Tomi Kilgore
GE stock soars after plan to split into 3 publicly traded companiesShares of General Electric Co. soared 15.5% in premarket trading Tuesday toward the highest levels seen since January 2018, after the industrial conglomerate announced plans to split up into three publicly traded companies. The company said it plans to spin off its GE Healthcare business in early 2023, with GE retaining a 19.9% stake. GE said it will also combine its GE Renewable Energy, GE Power and GE Digital businesses then spin that combination off in early 2024. After the splits, GE said it will remain an Aviation focused company. Current GE Chief Executive Larry Culp will be non-executive chairman of GE Healthcare after it is spun off, and will service of CEO of GE until the second spinoff, at which time he will lead the GE aviation-focused company. "By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees," Culp said. GE's stock has gained 25.5% year to date through Monday, while the S&P 500 has advanced 25.2%.
6:01 a.m. Oct. 1, 2021 - By Ciara Linnane
Honeywell to increase annual dividend to $3.92 vs. $3.72 starting in Q4 Honeywell International Inc. said Friday it is raising its annual cash dividend to $3.92 from $3.72 previously. The increase will start with the fourth-quarter dividend, which climbs to 98 cents a share, and will be payable Dec. 3 to shareholders of record as of Nov. 12. Shares were slightly higher Friday and are flat in the year to date, while the S&P 500 has gained about 15%.
2:44 a.m. Sept. 14, 2021 - By Ciara Linnane
Boeing says aerospace market is recovering as it expected in 2020, sees strong demand for freighters Boeing Co. said Tuesday the commercial airplanes and services businesses are showing expected signs of recovery from the depths of the pandemic slowdown in 2020, while the global defense, space and government services markets have remained stable. The aerospace giant published its annual Boeing Market Outlook for 2021 and said it expects a $9 trillion market in the next decade for aerospace products and services, up from $8.5 trillion a year ago and from $8.7 trillion in 2019, before the outbreak of COVID-19. "We are encouraged by the fact that scientists have delivered vaccines more rapidly than imaginable and that passengers are demonstrating strong confidence in airplane travel," Boeing Chief Strategy Officer Marc Allen said in a statement. The commercial market is recovering as Boeing had predicted it would in 2020, with demand for domestic air travel leading the way. The company is expecting intra-regional markets to follow once health and travel restrictions are lifted, followed by long-haul flights, which are expected to return to pre-pandemic levels by 2023 to 2024. Boeing is expecting increased demand for freighters, given the growth in e-commerce and air freight's speed and reliability and expects the global freighter fleet to be 70% larger in 2040 than it is now. Vaccine supply and uptake will be key in the near-term recovery of passenger air travel and traffic is expected to increase by an average of 4% a year, unchanged from last year's forecast. Boeing shares were down 0.6% premarket, and have gained 0.2% in the year through Monday, while the Dow Jones Industrial Average has gained 14% and the S&P 500 has gained 19%.
2:11 a.m. July 13, 2021 - By Ciara Linnane
Boeing shares slide 2% premarket on news of further delays in 787 deliveriesThe Boeing Co. shares slid 2% in premarket trade Tuesday, after the aerospace giant said it has identified additional rework that is required on its undelivered 787s, delaying their delivery through the rest of 2021. The company had previously disclosed talks with the FAA on the verification methodology for 787 fuselages and was carrying out inspections. "Based on our assessment of the time required to complete this work, Boeing is reprioritizing production resources for a few weeks to support the inspection and rework," the company said in a statement. "As that work is performed, the 787 production rate will temporarily be lower than five per month and will gradually return to that rate." The company is expecting to deliver fewer than half its 787s currently in inventory this year. Boeing delivered 79 aircraft in the second quarter and has delivered 156 in the year to date. Shares have gained 11% in the year so far, while the Dow Jones Industrial Average has gained 14.3% and the S&P 500 has gained 16.7%.
4:11 a.m. April 30, 2021 - By Tomi Kilgore
Honeywell to transfer stock listing to NasdaqHoneywell International Inc. said Friday that it will transfer the listing of its common stock to the Nasdaq Stock Market from the New York Stock Exchange. The aerospace, control technologies and performance materials company said its stock will start trading on the Nasdaq on May 11, under the same "HON" ticker symbol. "Honeywell is the world's premier software-industrial company, shaping the future of technology and sustainability," said Chief Executive Darius Adamczyk. "Nasdaq's long tradition of listing category-defining technology companies aligns well with Honeywell's cutting-edge technology and sustainability portfolio." After the transfer, Honeywell stock will become the seventh Dow Jones Industrial Average component listed on the Nasdaq. Honeywell shares, which were little changed in premarket trading, has rallied 57.8% over the past 12 months, while the Nasdaq Composite has advanced 58.4% and the Dow has climbed 39.9%.
2:45 a.m. April 26, 2021 - By Ciara Linnane
Raytheon raises quarterly cash dividend by 7% to 51 cents a share Defense contractor Raytheon Technologies Corp. said Monday its board has agreed to raise its quarterly cash dividend by 7% to 51 cents a share. The new dividend will be payable June 17 to shareholders of record as of May 21. "The outlook for our company is positive and we remain on track to return $18 to $20 billion to shareowners in the four years following the merger," Chief Executive Greg Hayes said in a statement, referring to the merger with the former United Technologies Corp. that created Raytheon Technologies. Shares were up 0.3% premarket and have gained 12.6% in the year to date, while the S&P 500 has gained 11.3%.
4:12 a.m. April 20, 2021 - By Tomi Kilgore
Boeing raises standard retirement age for CEO Calhoun to 70; CFO Smith to retireBoeing Co. said Tuesday it has raised its "age-65 standard retirement" for Chief Executive David Calhoun to age 70. Calhoun, who is 64, has been the aerospace and defense giant's CEO since January 2020. The mandatory retirement for Calhoun is now extended to April 1, 2028, but the company said there is no fixed term associated with Calhoun's employment. Separately, Boeing said Chief Financial Officer Gregory Smith has decided to retire, effective July 9, after more than 30 years with the company. Boeing is searching for Smith's successor. Boeing's stock, which fell 1.0% in premarket trading, has rallied 14.1% year to date through Monday, while the Dow Jones Industrial Average has gained 11.3%.
3:18 a.m. April 7, 2021 - By Tomi Kilgore
UPS to buy electrical vertical takeoff aircraft from Beta Technologies, with first deliveries expected in 2024United Parcel Service Inc. announced Wednesday plans to buy electric vertical takeoff and landing (eVTOL) aircraft from Beta Technologies, for use in select small- and mid-size markets. The aircraft can take off and land on the property of UPS facilities, reducing transit time, emissions and operating cost. The aircraft will have 1,400-pound cargo capacity, will have a 250-mile range and cruising speed of 170 miles per hour. The first ten Beta aircraft are scheduled to begin being delivered in 2024, and UPS has an option to buy up to 150 aircraft. Financial terms of the order were not disclosed. "These new aircraft will create operational efficiencies in our business, open possibilities for new services, and serve as a foundation for future solutions to reduce the emissions profile of our air and ground operation," said Chief Information and Engineering Officer Juan Perez. UPS stock, which tacked on 0.4% in premarket trading, has rallied 8.8% over the past three months, while the Dow Jones Transportation Average has climbed 15.9% and the Dow Jones Industrial Average has advanced 7.7%.
1:53 a.m. March 29, 2021 - By Ciara Linnane
Southwest Airlines adds 100 firm orders for Boeing 737 Max 7 as it updates fleet plansSouthwest Airlines Co. said Monday it has added 100 firm orders for the Boeing 737 Max 7 with the first 30 of those aircraft to be delivered in 2022. As part of an agreement with Boeing , Southwest also converted 70 Max 8 firm orders to Max 7 firm orders and added 155 MAX options for MAX 7 or MAX 8 aircraft for years 2022 through 2029. "These order book additions and revisions result in a new total of 349 MAX firm orders (200 MAX 7 and 149 MAX 8) and 270 MAX options for MAX 7 or MAX 8 aircraft for years 2021 through 2031," the airline said in a statement. Southwest is still expecting delivery of 28 Max 8 aircraft in 2021, and 17 737-700 retirements. The airline will end 2021 with 69 Max 8 aircraft and 729 total aircraft in its fleet. Southwest shares fell 1.2% premarket, while Boeing shares were up 1.8%. Southwest stock has gained 31.5% in the year to date, while the U.S. Global Jets EFT has gained 19% and the S&P 500 has gained 6%.
1:55 a.m. March 10, 2021 - By Tomi Kilgore
GE proposes reverse stock split to boost price 8-foldGeneral Electric Co. said Wednesday that its board of directors will recommend shareholders approve a 1-for-8 reverse stock split, given the industrial conglomerate's "significant transformation" over the past several years. The split would effectively multiply GE's stock price by eight, while reducing the number of shares outstanding to a number "more typical of companies with comparable market capitalization," GE said. The company said the timing of the reverse split will take place, at the board's discretion, before the one-year anniversary of its 2021 annual shareholder meeting scheduled for May 4. Separately, GE said it expects 2021 adjusted earnings per share of 15 cents to 25 cents, compared with the FactSet consensus of 25 cents. Revenue is expected to grow in the low-single-digit percentage range, while the current FactSet revenue consensus of $80.4 billion implies 1.0% growth, while free cash flow is expected to be $2.5 billion to $4.5 billion to surround the FactSet consensus of $3.6 billion. GE to combine its aircraft leasing business, GECAS, with AerCap Holdings N.V. . GE's stock has rallied 58.2% over the past 12 months, while the S&P 500 has gained 34.5%.
8:42 a.m. March 3, 2021 - By Tomi Kilgore
General Dynamics raises dividend by 8.2%, to push the yield even further above its peer groupShares of General Dynamics Corp. rose 0.9% in afternoon trading Wednesday, after the aerospace and defense company raised its dividend by 8.2%, to push the yield even further above its industrial peer group. The new quarterly dividend, which was raised to $1.19 a share from $1.10, will be payable May 7 to shareholders of record on April 9. Based on current stock prices, the new annual dividend rate implies a dividend yield of $2.81%, compared with the yield for the SPDR Industrial Select Sector ETF of 1.46% and the implied yield for the S&P 500 of 1.50%, according to FactSet. General Dynamics said it has now raised its annual dividend for 24 straight years. The stock has edged up 5.1% over the past 12 months, while the industrial ETF has rallied 27.1% and the S&P 500 has climbed 28.4%.
1:16 a.m. March 1, 2021 - By Tomi Kilgore
L3Harris to sell its military training, combat propulsion businesses for $1.45 billionCAE Inc. announced Monday an agreement to buy L3Harris Technologies Inc.'s military training business for $1.05 billion. CAE expects the deal to add to earnings in the first full year after the closing, which is expected to occur in the second half of 2120. L3Harris' military training business had revenue of about $500 million in 2020. Separately, L3Harris said it is also selling its combat propulsion systems and related business to Renk AG for $400 million in cash. That business had annual revenue of about $230 million. L3Harris plans to use the proceeds from the sales for share repurchases. "hese agreements place our Military Training and Combat Propulsion Systems and related businesses with well-suited buyers, while positioning L3Harris to further focus on its core technologies and execute its strategic priorities," said L3Harris Chief Executive William Brown. CAE and L3Harris stocks were both inactive in premarket trading. Over the past three months, shares of L3Harris have lost 5.2% and CAE have gained 8.3%, while the S&P 500 has advanced 4.1%.
9:15 a.m. Feb. 26, 2021 - By Tomi Kilgore
L3Harris raises dividend by 20%, to push implied yield to over 2.2%L3Harris Technologies Inc. declared Friday a quarterly dividend of $1.02 a share, which marks a 20% increase from the previous quarterly dividend of 85 cents a share. The aerospace and defense company's new dividend will be payable March 26 to shareholders of record on March 12. The stock fell 2.2% to $182.87 in afternoon trading. Based on the current stock price, the new annual dividend rate implies a dividend yield of 2.23%, compared with the yield for the SPDR Industrial Select Sector ETF of 1.51% and the implied yield for the S&P 500 of 1.51%, according to FactSet. L3Harris's stock has dropped 13.1% over the past 12 months, while the industrial ETF has gained 17.6% and the S&P 500 has advanced 22.7%.
1:52 a.m. Feb. 25, 2021 - By Ciara Linnane
Virgin Galactic names Doug Ahrens CFO, replacing Jon Campagna who is stepping down after IPOVirgin Galactic Holdings Inc. said Thursday it has named Doug Ahrens chief financial officer, replacing Jon Campagna, who is stepping down after the company's move from the private market to the public one. Ahrens was most recently CEO of Mellanox, a semiconductor company, and has done stints at GlobalLogic, Maxim Integrated Products, Intel Corp. and Chevron Corp. Shares of the space travel company were down 1.8% premarket, but have gained 35% in the last 12 months, while the S&P 500 has gained 22%.
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