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4:42 a.m. Dec. 3, 2021 - By Tomi Kilgore
AppLovin's stock drops after upsized offering by shareholders prices at discountShares of AppLovin Corp. slumped 8.9% toward a two-month low in morning trading Friday, after the app-software company said a secondary stock offering, which was upsized by 15%, priced at an 8.1% discount. The company, , said selling shareholders offered 7.5 million shares in the offering, up from previous expectations of a 6.5 million share offering when the secondary was announced late Thursday. The shareholders raised $622.5 million, as the offering priced at $83.00, below Thursday's closing price of $90.32. The stock, which has tumbled 28.7% since closing at a record $114.85 on Nov. 11, has still gained 5.6% over the past three months while the S&P 500 has gained 1.2%.
8:49 a.m. Dec. 2, 2021 - By Tomi Kilgore
WEC Energy boosts dividend, to push the implied yield even further above its peer groupShares of WEC Energy Group Inc. announced Thursday plans to raise its quarterly dividend by 7.4%, to 72.75 cents a share from 67.75 cents, in the first quarter of 2022. The Milwaukee-based utility company's stock rallied 1.8% in afternoon trading. Based on current stock prices, the new annual dividend rate implies a dividend yield of 3.26%, which compares with the current yield for the SPDR Utilities Select Sector ETF of 2.94% and the implied yield for the S&P 500 of 1.35%. Separately, WEC introduced 2022 earnings per share guidance of $4.29 to $4.33, which surrounds the current FactSet consensus of $4.30. The stock has slipped 3.0% year to date, while the utilities ETF has gained 7.2% and the S&P 500 has rallied 21.9%.
2:09 a.m. Dec. 2, 2021 - By Tomi Kilgore
Chesapeake Energy sets $1 billion stock buyback programChesapeake Energy Corp. announced Thursday plans to repurchase up to $1 billion worth of its common stock and/or warrants to buy back stock over the next two years. The value of the buyback program represents about 15% of oil and natural gas company's market capitalization of $6.68 billion as of Wednesday's close. The stock, which was little changed in premarket trading, has dropped 7.9% amid a four-day losing streak to close Wednesday at a three-month low. "We are pleased to build upon our previously announced base and variable dividend structure to include the ability to repurchase a significant amount of our outstanding equity," said Chief Executive Nick Dell'Osso. The stock has slipped 2.2% over the past three months while the SPDR Energy Select Sector ETF has climbed 10.5% and the S&P 500 has slipped 0.5%.
1:19 a.m. Dec. 2, 2021 - By Tomi Kilgore
GEO to de-REIT, to stop paying dividendShares of GEO Group Inc. slipped 0.1% in premarket trading Thursday, after the corrections facility company announced plans to stop being a real estate investment trust (REIT), and become a taxable C corporation, effective fir the year ending Dec. 31. The company has also decided to stop paying a quarterly dividend. The company said it has decided to make the change in its corporate status and dividend policy to give it additional flexibility to allocate cash towards reducing debt. GEO said it is reviewing potential sales of company-owned businesses and assets. "We believe that these are prudent steps, which are in the best interests of our shareholders and other stakeholders," said Chief Executive George Zoley. The company expects to incur a charge of about $75 million and $34 million in income tax expense in the fourth quarter as a result of the restructuring. GEO expects 2021 adjusted earnings per share of $1.14 to $1.16, compared with the FactSet EPS consensus of $1.43. The stock has lost 8.6% year to date through Wednesday, while the SPDR Real Estate Select Sector ETF has rallied 27.9% and the S&P 500 has gained 20.2%.
6:05 a.m. Dec. 1, 2021 - By Tomi Kilgore
GM to build a factory with POSCO Chemical to process materials for EV batteries, creating 'hundreds of jobs'Shares of General Motors Co. jumped 4.4% in morning trading Wednesday, after the auto maker said it will create "hundreds of jobs" as it plans to build a factory in North American with South Korea-based POSCO Chemical Co. Ltd. to process battery materials for GM's Ultium electric vehicle platform. GM said it was forming a joint venture with POSCO Chemical to build the factory, which is expected to open in 2024 at a location to be announced later, and to process Cathode Active Material (CAM), which is a battery material that represents about 40% of the cost of an EV battery cell. "Our work with POSCO Chemical is a key part of our strategy to rapidly scale U.S. EV production and drive innovation in battery performance, quality and cost," said Doug Parks, GM executive vice president of global product development, purchasing and supply chain. The new facility will supply Ultium cells facilities being built in Lordstown, Ohio and Spring Hill, Tenn., as part of to 2025. GM's stock has soared 23.0% over the past three months, while the S&P 500 has gained 2.5%.
5:13 a.m. Dec. 1, 2021 - By Tomi Kilgore
Skechers stock surges after activist investor boosts stake, calls for 'aggressive' buybacks and dividendShares of Skechers USA Inc. surged 5.1% in morning trading Wednesday, after Tremblant Capital Group disclosed that it increased its equity stake in the footwear seller to 5.1%, and said it has "engaged in discussions" with the company in an attempt to boost value. The new stake of 6.87 million shares comes just two weeks after the company said in a 13F filing that it owned 2.73 million Skechers shares and calls to buy 1.07 million shares as of Sept. 30. In a letter to Skechers' board of directors, that it was "puzzling" that despite revenue growing faster than many peers, such as Nike Inc. , Under Armour Inc. and Crocs Inc. , Skechers stock trades at less than half of the earnings multiples of those peers. Among Tremblant's suggestions to grow value were to initiate an "aggressive" share repurchase program and a dividend, and to eliminate the dual share class structure. Tremblant believes its suggestions could create more than $4 billion of value over the next 10 years. The stock has shed 6.0% over the past three months, while the S&P 500 has gained 2.5%.
3:44 a.m. Dec. 1, 2021 - By Tomi Kilgore
Forward Air to raise prices by nearly 8% to offset rising costsForward Air Corp. said Wednesday it was informing its customers of a 7.9% general rate increase (GRI), effective Feb. 1. The trucking and logistics company said the GRI is applicable to rates established under the existing tariffs. "The GRI is intended to offset rising costs associated with the challenging operating environment, and we believe will allow Forward to continue investing in service enhancement, fleet maintenance, technology innovations, and other areas to serve customers more effectively and efficiently," the company said in a statement. The stock, which was still inactive in premarket trading, has rallied 11.4% over the past three months, while the Dow Jones Transportation Average has gained 7.4% and the Dow Jones Industrial Average has slipped 2.4%.
3:33 a.m. Dec. 1, 2021 - By Tomi Kilgore
Azenta, the former Brooks Automation to begin trading under new tickerAzenta Inc. , formerly known as life sciences solutions company Brooks Automation Inc., said Wednesday that its stock will begin trading under a new ticker -- "AZTA" -- after the opening bell. The previous ticker was "BRKS." The company had said on Nov. 16 that it was changing its name to Azenta, following the launch of the Azenta Life Sciences brand, and after announcing in September that it was selling its semiconductor automation business to Thomas H. Lee Partners. The company expects the sale of its chip automation business to be completed in the first half of 2022. The stock has run up 32.5% over the past three months, while the S&P 500 has gained 1.0%.
2:31 a.m. Dec. 1, 2021 - By Tomi Kilgore
Exxon Mobil to boost spending on greenhouse gas reduction projects to $15 billion through 2027Exxon Mobil Corp. said Wednesday that it has finalized its corporate plans to 2027, including increased spending on greenhouse gas emission-reduction projects to $15 billion over the next six years. The company said it also plans to maintain "disciplined capital investments," keeping that in the range of $20 billion to $25 billion per year through 2027. "The support the corporate strategy of continued structural cost savings, investment in low-cost-of-supply and lower-emission products, and further portfolio high-grading, positioning the company to double earnings and cash flow by 2027 versus 2019," the oil giant stated. The stock rose 2.1% in premarket trading, and crude oil futures bounced 4.7% off Tuesday's 3-month closing low. Exxon Mobil's stock has rallied 45.2% year to date through Tuesday, while the SPDR Energy Select Sector ETF has run up 44.0% and the S&P 500 has advanced 21.6%.
2:27 a.m. Nov. 30, 2021 - By Tomi Kilgore
Lithia Motors boosts stock buyback program by $750 million, to more than 10% of market capLithia Motors Inc. , also known as Lithia & Driveway, said Tuesday it was increasing its stock repurchase program by $750 million. The lifts the total funds available for repurchases to $885 million, which represents about 10.3% of the auto retailer's market capitalization of $8.59 billion as of Monday's close. The stock was still inactive in the premarket. "As discussed in our last earnings call, strong earnings have generated greater than expected free cash flows, which allows us to return capital to our shareholders through share repurchases, while preserving the liquidity necessary to achieve our 2025 Plan," said Chief Executive Bryan DeBoer. "Our capital allocation remains focused on acquisitions and internal investments, such as Driveway and Driveway Finance, to generate the highest long-term return for shareholders." The stock has slumped 13.4% over the past three months while the S&P 500 has gained 2.8%.
2:19 a.m. Nov. 30, 2021 - By Tomi Kilgore
Elanco Animal Health to cut 380 jobs, reduce senior management by 20% as part of restructuringElanco Animal Health Inc. said Tuesday it will cut about 380 jobs globally as part of a restructuring aimed at simplifying the animal health company's organizational structure and to focus investments in priority areas. The job cuts, which represents about 3.7% of the workforce as of the end of 2020, will include reducing senior management by about 20%. As part of the senior management reduction, Chief Marketing Officer Racquel Harris Mason, President Elanco Europe Dirk Ehle and President U.S. Pet Health Joyce Lee. The company expects to record a fourth-quarter charge of between $86 million to $94 million for severance costs, which is expected to reduce net earnings per share by 13 cents to 15 cents. The company expects compensation and benefits savings of $70 million a year once the job cuts are fully implemented. "While actions that impact our team are always difficult, it is imperative that we simplify our organization and focus on delivering customer value to meet our commitments to improve our profitability, even in the midst of increasing inflationary and supply chain costs," said Chief Financial Officer Todd Young. The stock, which was still inactive in premarket trading, has lost 9.7% over the past three months while the S&P 500 has gained 2.8%.
2:49 a.m. Nov. 23, 2021 - By Tomi Kilgore
Dollar Tree matches and profit and tops sales views, moves to $1.25 price point for all storesShares of Dollar Tree Inc. sank 1.2% in premarket trading Tuesday, after the discount retailer matched profit expectations and topped sales forecasts but saw gross margin fall, and said it was moving to a $1.25 price point for all Dollar Tree stores. Net income fell to $216.8 million, or 96 cents a share, from $330.0 million, or $1.39 a share, in the year-ago period. The FactSet consensus for earnings per share was 96 cents. Sales rose 3.9% to $6.42 billion, above the FactSet consensus of $6.41 billion, while cost of sales grew 9.4% to outpace sales growth and to knock gross margin down to 27.5% from 31.2%. Same-store sales rose 1.6%, beating the FactSet consensus of 1.5%, as Family Dollar same-store sales rose 2.7% and Dollar Tree same-store sales increased 0.6%. For the fourth quarter, the company expects EPS of $1.69 to $1.79 and sales of $7.02 billion to $7.18 billion, compared with the FactSet EPS consensus of $1.74 and sales expectations of $7.03 billion. Regarding the $1.25 price point: "For 35 years, Dollar Tree has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades. However, as detailed in its September announcement, the company believes this is the appropriate time to shift away from the constraints of the $1.00 price point in order to continue offering extreme value to customers." The stock has rallied 28.1% over the past three months through Monday while the S&P 500 has gained 4.5%.
4:52 a.m. Nov. 18, 2021 - By Tomi Kilgore
CVS to close about 900 stores in 3 years, record charge of up to $1.2 billionCVS Health Corp. said it will close about 300 stores a year for the next three years as it looks to reduce store density in certain areas, following an evaluation of changes in population and consumer buying patterns. The drugstore chain's stock tacked on 0.3% in premarket trading. CVS said earlier this month that it had more than 9,900 retail stores. The company expects to record a impairment charge of $1.0 billion to $1.2 billion for the store closures. As a result, the company cut its net earnings-per-share guidance range for 2021 to $5.46 to $5.67 from $6.13 to $6.23, but the adjusted EPS outlook is unchanged at $7.90 to $8.00. The company also announced some management moves, including naming Prem Shah to the newly created role of Chief Pharmacy Officer. The stock has rallied 10.8% over the past three months while the S&P 500 has tacked on 6.7%.
1:43 a.m. Nov. 18, 2021 - By Tomi Kilgore
NOV reinstates quarterly dividend, last paid in March 2020NOV Inc. said Thursday it will reinstate its quarterly dividend of 5 cents a share, payable on Dec. 17 to shareholders of record on Dec. 3. The provider of equipment to the oil and gas industry last paid a dividend in March 2020. "Reinstating a regular quarterly dividend demonstrates our continued commitment to returning excess capital to our shareholders along with our growing confidence in the emerging recovery of our business," said Chief Executive Clay Williams. Based on the stock's Wednesday closing price of $12.82, the annual dividend rate implies a dividend yield of 1.56%, compared with the yield for the SPDR Energy Select Sector ETF of 3.78% and the implied yield for the S&P 500 of 1.31%.
3:46 a.m. Nov. 17, 2021 - By Tomi Kilgore
Alcoa to transfer $1 billion in pension obligations to Athene HoldingAlcoa Corp. said Wednesday that it has bought group annuity contracts that will help transfer $1 billion in pension obligations for defined benefit pension plans for certain retirees and beneficiaries in the U.S. The aluminum company's stock rose 1.6% in premarket trading. The transfer will be completed later in November. Alcoa said the group annuity contracts will be executed by subsidiaries of Athene Holding Ltd. , with Athene assuming payments in December 2021 for about 11,200 participants in U.S. pension plans. The stock has soared 109.1% year to date through Tuesday, while Athene shares have shot up 99.6% and the S&P 500 has gained 25.2%.
10:03 a.m. Nov. 16, 2021 - By Tomi Kilgore
Amkor Technology stock rallies after boosting dividend by 25%Shares of Amkor Technology Inc. rallied 1.7% in afternoon trading Tuesday, after the semiconductor packaging and test services company announced a 25% increase in its quarterly dividend. Shareholders of record on Dec. 7 will be paid the new dividend of 5 cents a share, up from 4 cents, on Dec. 28. Based on current share prices, the new annual dividend rate implies a dividend yield of 0.84%, compared with the yield for the VanEck Semiconductor ETF of 0.49% and the implied yield for the S&P 500 of 1.31%. "Based on our strong operating results and financial position, Amkor has increased its quarterly cash dividend by 25%," said Chief Executive Giel Rutten. "We are pleased to be in a position where we can both invest in our future and increase our return of capital to stockholders." Amkor's stock has lost 8.5% over the past three months but has rallied 57.7% year to date, while the semiconductor ETF has climbed 39.4% this year and the S&P 500 has advanced 25.4%.
9:23 a.m. Nov. 15, 2021 - By Tomi Kilgore
Caliber Home Loans withdraws IPO plans, that were originally filed 13 months agoCaliber Home Loans Inc. requested Monday that the Securities and Exchange Commission withdraw its filing for an initial public offering. The company originally on Oct. 2, 2020, with the latest indication of filed on Oct. 21, 2020. Under those terms, the Texas-based mortgage originator looked to raise up to $368.0 million and be valued at up to $1.91 billion. On Jan. 21, 2021, the company filed an amendment to its IPO filing, in which the company removed the IPO terms provided three months earlier. Caliber Home's IPO withdrawal comes amid concerns over a slowing housing market after data showing that , while economists were projecting a 1% increase. In addition, the Renaissance IPO ETF has gained just 5.0% year to date, while the S&P 500 has rallied 24.5%.
3:17 a.m. Nov. 12, 2021 - By Tomi Kilgore
Wynn Resorts terminates merger with SPAC that would have taken sub Wynn Interactive publicWynn Resorts Ltd. said Friday that with special purpose acquisition company (SPAC) Austerlitz Acquisition Corp. I , which would have taken subsidiary Wynn Interactive Ltd. public, has been terminated effective immediately. Wynn's stock was little changed in premarket trading while Austerlitz shares fell 1.8%. "As we discussed on the Wynn Resorts, Limited third quarter earnings conference call earlier this week, in light of elevated marketing and promotional spend in the sports betting industry, we are pivoting our user acquisition efforts to a more targeted [return on investment]-focused strategy," said Wynn Interactive Chief Executive Craig Billings. "In so doing, we expect the capital intensity of the business to decline meaningfully beginning in the first quarter of 2022. WynnBET's best days lie ahead of us." The merger with Austerlitz was originally announced on May 10, with the enterprise value of the combined company estimated at $3.2 billion. Since then, Wynn's stock dropped 24.9% through Thursday while the S&P 500 has rallied 11.0%.
1:32 a.m. Nov. 12, 2021 - By Ciara Linnane
J&J plans to split into two public companies and separate consumer and drug businessesJohnson & Johnson shares jumped 3.6% in premarket trade Friday, after that the company plans to split into two companies, splitting off the consumer group from the prescription drugs and medical devices business. The company confirmed the story in a release early Friday. J&J will separate the consumer business in 18 to 24 months, he said, because its customers and markets have diverged so much from the rest of the business in recent years, including during the pandemic. "The best path forward to ensure sustainable growth over the long term and better meet patient and consumer demands is to have our consumer business operate as a separate healthcare company," Mr. Gorsky said in an interview. The company intends to conduct the separation on a tax-free basis, although details have yet to be worked out, said Gorsky. Pfizer Inc. and Merck have also decided to split their consumer and drug businesses, and earlier this week, General Electric Co. J&J shares have gained 3.6% in the year through Thursday, while the Dow Jones Industrial Average has gained 17% and the S&P 500 has gained 24%.
8:53 a.m. Nov. 9, 2021 - By Tomi Kilgore
Purple Innovation stock bounces after earnings call delayed till after the closeShares of Purple Innovation Inc. bounced 1.7% in afternoon trading Tuesday, putting them on track to snap a three-day losing streak, after the company delayed the release of its third-quarter earnings report till after the bell. The mattress maker was originally scheduled to release its earnings report at 7:00 a.m. Eastern and hold its post-earnings conference call at 8:30 a.m., but instead announced at 7 a.m. that it changed the timing of its earnings conference all to 4:30 p.m. Tuesday. The stock had 2.4% on Monday, and had lost 4.0% in three days, after BofA Securities analyst , swinging to sell from buy, citing the belief that the company is seeing "weak online and wholesale trends" into the current quarter and following Tempur-Sealy International Inc.'s recent introduction of the "first real competitive threat" to Purple's gell grid-based beds. The stock has tumbled 21.8% over the past three months, while Tempur Sealy shares have gained 4.2% and the S&P 500 has tacked on 5.4%.
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%.
3:45 a.m. Nov. 8, 2021 - By Tomi Kilgore
OpenText to buy Zix at a price representing a 2.7% discount, that values Zix at nearly $484 millionOpenText Corp. announced Monday an agreement to buy email encryption company Zix Corp. in a deal valued at $860 million, including debt. Zixi's stock was halted for news, until 9 a.m. Eastern. Under terms of the deal, Open Text will pay $8.50 in cash for each Zix share outstanding, which represents a 2.7% discount to Friday's closing price of $8.74, and implies a market capitalization for Zix of $483.8 million. The deal is expected to close within 90 days of Monday's announcement. "We intend to integrate Carbonite, Webroot and Zix products to create a powerhouse SMB platform for data protection, threat management, email security and compliance solutions. Acquisitions of cloud growth assets like Zix highlights our commitment to our Total Growth strategy and approach to cash-based returns," said OpenText Chief Executive Mark Barrenechea. Zix's stock has soared 28.0% over the past three months, while OpenText share have slipped 1.4% and the S&P 500 has gained 5.9%.
2:08 a.m. Nov. 8, 2021 - By Tomi Kilgore
Coty stock jumps after earnings beat, deal to sell more of its Wella stake to KKRShares of Coty Inc. shot up 9.6% toward a six-month high in premarket trading Monday, after the consumer beauty company reported better-than-expected fiscal first-quarter revenue and announced a deal to sell off more of its stake in hair care company Wella. Net income for the quarter to Sept. 30 fell to $103.0 million, or 13 cents a share, from $200.6 million, or 24 cents a share, in the year-ago period. Excluding nonrecurring items, the company swung to adjusted earnings per share of 8 cents from a per-share loss of a penny, beating the FactSet consensus of 3 cents. Revenue rose 22.0% to $1.37 billion, matching the FactSet consensus of $1.37, while "like-for-like" (LFL) sales grew 20.6% to beat the company's guidance of "high-teens" percentage growth. For fiscal 2022, the company raised its LFL sales growth outlook to low-to-mid teens growth from low teens growth. Separately, Coty announced an agreement to sell a 4.7% stake in Wella to KKR & Co. Inc. in exchange for the redemption of 56% of KKR's remaining convertible preferred shares in Coty. The Wella stake sale . Once the deal closes, KKR will have a 2.4% ownership stake in Coty. Coty's stock has rallied 8.0% over the past three months through Friday, while the S&P 500 has gained 5.9%.
4:24 a.m. Nov. 4, 2021 - By Tomi Kilgore
Ford stock rallies after move to buyback up to $5 billion of higher-yield debtShares of Ford Motor Co. rallied 1.9% in premarket trading Thursday, after the auto maker said it launched a tender offer to repurchase up to $5.0 billion of higher-yielding debt. The tender offer is for debt including the 9.000% securities due April 2025 and the 9.625% securities due April 2030. In comparison, the yield on the 5-year Treasury notes closed at 1.19% on Wednesday while the 10-year Treasury yield closed at 1.60%. Ford's senior unsecured debt is rated Ba2 at Moody's, which is two notches below investment-grade status. Separately, the company and its Ford Motor Credit Co. financing subsidiary introduce its sustainable financing framework, which focuses on and paying for plans in vehicle electrification and other environmental and social areas. "Winning businesses are financially healthy and lead in sustainability -- it's not a choice, they rely on each other," said Chief Financial Officer John Lawler. The stock has soared 112.0% year to date through Wednesday, while shares of rival General Motors Co. have rallied 34.5% and the S&P 500 has gained 24.1%.
1:22 a.m. Nov. 4, 2021 - By Tomi Kilgore
Becton Dickinson boosts dividend by 5%, sets new repurchase program valued at nearly $2.5 billionBecton Dickinson & Co. said Thursday it will raise its dividend by nearly 5% and that it set a 10 million share repurchase program that could be valued at nearly $2.5 billion at current prices. The new quarterly dividend of 87 cents a share, up from 83 cents, will be payable Dec. 31 to shareholders of record on Dec. 10. Based on Wednesday's stock closing price of $247.03, the new annual dividend rate implies a dividend yield of 1.41%, compared with the implied yield for the S&P 500 of 1.31%. The new buyback program is for up to 10 million shares, which is in addition to the 750,000 shares remaining in the previous buyback program. The medical technology company's stock, was little changed in premarket trading, has lost 3.0% over the past three months while the S&P 500 has gained 5.9%.
1:37 a.m. Nov. 2, 2021 - By Tomi Kilgore
Estee Lauder boosts dividend by 13%Estee Lauder Companies said Tuesday it is raising its quarterly dividend by 13%, to 60 cents a share from 53 cents. For shareholders of record on Nov. 30, the new dividend will be payable on Dec. 15. Based on Monday's stock closing price of $325.15, the new annual dividend implies a dividend yield of 0.74%, compared with the implied yield for the S&P 500 of 1.32%. The skin care, makeup, fragrance and hair care company's stock, which was indicated down about 0.3% in premarket trading, has slipped 0.8% over the past three months through Monday, while the S&P 500 has gained 5.2%.
4:10 a.m. Nov. 1, 2021 - By Tomi Kilgore
Pitney Bowes to implement 5.9% price hike starting JanuaryPitney Bowes Inc. announced Monday a general rate increase (GRI) of 5.9% for ecommerce services, starting Jan. 2. The shipping and mailing company's Chief Revenue Officer Patrick Allard said the 2022 GRI is being announced earlier than it every has "to put our clients in the best position to anticipate and plan for their logistics spending in 2022." The company said the GRI applies to the standard delivery of parcels weighing at leat one pound, standard returns through the Pitney Bowes U.S. network and cross-border deliveries. The company said the GRI comes amid rising labor and transportation costs. The stock, which ticked up 0.1% in premarket trading, has slumped 13.3% over the past three months while the S&P 500 has gained 4.8%.
10:07 a.m. Oct. 27, 2021 - By Tomi Kilgore
Exxon Mobil raises dividend by a penny, to boost the implied yield to nearly 5.5%Exxon Mobil Corp. said Wednesday it will raise its quarterly dividend by a penny, to 88 cents a share from 87 cents. The new dividend will be payable Dec. 10 to shareholders of record on Nov. 12. The stock slumped 2.5% in afternoon trading, amid a broad slump in energy stocks as crude oil futures shed 2.3%. Based on current stock prices, Exxon Mobil's new annual dividend rate implies a dividend yield of 5.48%, which compares with the yield for the SPDR Energy Select Sector ETF of 3.75% and the implied yield for the S&P 500 of 1.32%. Exxon Mobil's new implied yield would make it the eighth-highest yielding stock in the S&P 500. There had been some question as to whether Exxon Mobil would raise its dividend or not this year, with Chief Executive Darren Woods assuring investors in July that the oil giant feels a "very strong commitment" toward a reliable and growing dividend.
5:45 a.m. Oct. 20, 2021 - By Steve Gelsi
Cannabis real estate lender Pelorus Equity quadruples fund size to $1 billionSpecialty lender Pelorus Equity Group Inc. on Wednesday said it's increasing its privately held mortgage real estate investment trust, the Pelorus Fund, to $1 billion from $250 million to raise capital for bridge commercial real estate loans for cannabis businesses. The Laguna Hills, Calf., firm is launching a new, stabilized lending program with three- to five-year amortizing loans. "Our company launched its $100 million offering in 2018, and then in 2020, upsized it to $250 million, but with the 300% growth we've experienced in 2021, we continue to see an acceleration of institutional interest in our thesis and core strategy," said Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. The company expects to have more than $250 million of assets under management by the end of the year. Founded in 2010, Pelorus has completed 58 commercial real-estate loan transactions and deployed $225 million to cannabis businesses.
1:06 a.m. Oct. 20, 2021 - By Tomi Kilgore
Micron to spend $150 billion in 10 years on building out memory manufacturing, stock fallsShares of Micron Technology Inc. fell 1.3% in premarket trading Wednesday, after the memory and semiconductor company said it will invest $150 billion over the next decade in memory manufacturing and research and development. The investment, which could include U.S. fab expansion, is aimed at addressing demand for memory, as memory and storage currently represent about 30% of the semiconductor market. "Memory is at the leading edge of semiconductor manufacturing and fuels everything from feature-rich 5G smartphones to the AI-enabled cloud," said Chief Executive Sanjay Mehrotra. "Micron's leadership in both DRAM and NAND technologies and the strength of our roadmap enable us to invest more than $150 billion with confidence to extend our industry-leading memory innovation into the next decade, and deliver differentiated products to our customers." Micron's stock has dropped 10.1% year to date while the PHLX Semiconductor Index has climbed 21.0% and the S&P 500 has advanced 20.3%.
6:21 a.m. Oct. 19, 2021 - By Tomi Kilgore
American Electric Power raises dividend, to boost implied yield to over 3.7%Shares of American Electric Power Co. Inc. rose 0.6% in morning trading Tuesday, after the Ohio-based electricity transmission company said it raised its cash dividend by 5.4%. The new quarterly dividend of 78 cents a share, up from 74 cents, will be payable Dec. 10 to shareholders of record on Nov. 10. At current stock price, the new annual dividend rate implies a dividend yield of 3.74%, which compares with the SPDR Utilities Select Sector ETF's yield of 3.01% and the implied yield for the S&P 500 of 1.34%. American Electric's stock has edged up 0.3% year to date, while the utilities ETF has gained 4.8% and the S&P 500 has rallied 20.2%.
4:14 a.m. Oct. 18, 2021 - By Tomi Kilgore
Kulicke & Soffa raises dividend to lift implied yield above the S&P 500'sShares of Kulicke & Soffa Industries Inc. rose 0.6% in premarket trading Monday, after the Singapore-based semiconductor company said it has raised its quarterly dividend by 21.4%. The new quarterly dividend of 17 cents a share, up from 14 cents, will be payable Jan. 10 to shareholders of record on Dec. 23. Based on Friday's stock closing price of $49.20, the new annual dividend rate implies a dividend yield of 1.38%, which compares with the yield for the VanEck Semiconductor ETF's yield of 0.57% and the implied yield for the S&P 500 of 1.35%. The stock's gain bucked the weakness in Kulicke & Soffa's peers and the broader stock market, as the semiconductor ETF dropped 0.8% in premarket trading while futures for the S&P 500 fell 0.5%.
3:18 a.m. Oct. 14, 2021 - By Tomi Kilgore
Dream Holdings, SPAC Spring Valley Acquisition cancel $1.2 billion deal to bring AeroFarms publicShares of special purpose acquisition company Spring Valley Acquisition Corp. shot up 10.1% in premarket trading Thursday, after the SPAC and Dream Holdings Inc., the holding company of indoor vertical farming company AeroFarms, announced the termination of their merger agreement. The companies said neither will be required to pay the other a termination fee, since the decision to terminate the deal was mutual. The merger agreement, which would have taken AeroFarms public, , in a deal valued at that time at $1.2 billion. "We made this decision to ensure that AeroFarms is in an optimal position to pursue our growth strategy and to deliver on our mission to grow the best plants possible for the betterment of humanity," said AeroFarms Cief Executive David Rosenberg. "We believe proceeding with this transaction is not in the best interests of our shareholders." Spring Valley said it will continue to pursue a merger, before the dissolution deadline of May 27, 2022. Spring Valley's stock had dropped 10.6% since the AeroFarms deal was announced through Wednesday, while the S&P 500 has gained 9.8% over the same time.
4:02 a.m. Oct. 13, 2021 - By Tomi Kilgore
Commercial Metals stock gains after dividend raised 17%, new $350 million stock buyback plan announcedShares of Commercial Metals Co. tacked on 0.6% in premarket trading Wednesday, after the steel and metal products maker said it raised its dividend by 17% and announced a new $350 million stock repurchase program. The company said its new quarterly dividend of 14 cents a share, up from 12 cents a share, will be payable Nov. 10 to shareholders of record on Oct. 27. Based on Tuesday's stock closing price of $32.21, the new annual dividend rate implies a dividend yield of 1.74%, compared with the implied yield for the S&P 500 of 1.39%, according to FactSet. The new stock buyback program replaces the existing plan which had $27 million remaining as of Aug. 31. The new program represents about 9% of CMC's market capitalization of $3.88 billion as of Tuesday's close. The stock has run up 56.8% year to date through Tuesday, while the S&P 500 has gained 15.8%.
1:55 a.m. Oct. 12, 2021 - By Tomi Kilgore
Greif to raise prices for protective packaging by at least 7%Greif Inc. said Tuesday it will raise prices for paperboard and protective packaging products in response to strong demand and increasing energy, transportation, labor and other input costs. The company said it is implementing a price increase of $60 per ton for all grades of uncoated recycled paperboard, effective Tuesday with new orders and shipments on and after Nov. 8. The company also said it will implement a minimum 7.0% increase on all tube and core and protective packaging products, effective with shipments on and after Nov. 22. Greif's Class A stock, which is still inactive in premarket trading, has rallied 46.5% year to date, while the S&P 500 has advanced 16.1%.
2:17 a.m. Oct. 11, 2021 - By Tomi Kilgore
Aspen Technology, Emerson announce deal valued at $11 billion to create new AspenTech software companyShares of Aspen Technology Inc. rallied 4.7% and Emerson Electric Co. fell 0.9% after the companies announced an agreement in which Emerson's industrial software business will be contributed to Aspen to create a new AspenTech software company with greater scale, capabilities and technologies. As part of the deal, Emerson will also contribute $6.0 billion in cash in exchange for a 55% stake in the newly formed AspenTech. Under the agreement's terms, AspenTech shareholders will receive $87 per share in cash and 0.42 shares of the new AspenTech, implying a total consideration of $160 a share, and deal with a total equity value of about $11 billion before expected synergies. That represents a 13.0% premium to Aspen's Friday's closing price of $141.55. After the deal closes, which is expected to occur in the second quarter of 2022, the new AspenTech will trade on the Nasdaq under the ticker symbol "AZPN." Aspen's stock has gained 8.7% year to date through Friday and Emerson shares have rallied 20.2%, while the S&P 500 has advanced 16.9%.
2:26 a.m. Oct. 7, 2021 - By Tomi Kilgore
Carnival to restart more cruises from U.S. ports in January and February, expects 100% capacity use in the springShares of Carnival Corp. rose 1.7% in premarket trading Thursday, after the cruise operator announced more cruise restarts that will increase the use of its U.S.-based capacity to 90% through February 2022. The company said late Wednesday that its Carnival Sunshine ship will restart operations from Charleston on Jan. 13 and its Carnival Liberty ship will restart from Port Canaveral on Feb. 11, adding to the 17 ships scheduled to be operating by the end of 2021. The restarts are part of the Carnival's plan to be using 100% of its cruise capacity from U.S. ports in the spring of 2022. Meanwhile, cruises on Carnival's three remaining U.S.-based ships, Carnival Ecstasy from Jacksonville, Carnival Paradise from Tampa and Carnival Sensation from Mobile, have been cancelled through February. "Our restart plan continues to excel across all metrics, and we are looking forward to completing the restart of the fleet in the new year," said Carnival Cruise Line President Christine Duffy. The stock has gained 3.4 over the past three months through Wednesday, while the S&P 500 has ticked up 0.1%.
1:43 a.m. Oct. 6, 2021 - By Tomi Kilgore
Dow plans investments to boost adjusted profit growth by $3 billion, move toward zero-carbon emissionsDow Inc. revealed Wednesday investment plans aimed at generating more than $3 billion in additional earnings before interest, taxes, depreciation and amortization (Ebitda) by 2030, while keeping capital expenditures at or below depreciation. The materials science company said the investments are also part of its plan to advance circular and low-carbon offering as it moves toward zero-carbon emissions. The company said near-term capital and operating growth investments are expected to increase Ebitda by $2 billion and a new net-zero carbon emissions ethylene and derivatives complex is expected to deliver about $1 billion in Ebitda. Dow added that it expects to allocate about $1 billion in capital expenditures per year to decarbonize its asset base. The stock, which is still inactive in premarket trading, has gained 6.5% year to date, while the Dow Jones Industrial Average has advanced 12.1%.
1:10 a.m. Oct. 6, 2021 - By Ciara Linnane
Home Depot teams up with Walmart GoLocal service for same-day and next-day deliveryThe Home Depot said Wednesday it is teaming up with Walmart GoLocal service to expand same-day and next-day delivery for its customers for a variety of products. The home improvement retailer will start to offer the service in select markets in the coming weeks and then expand to multiple markets across the U.S. by the end of the year. "Products that qualify for this scheduled delivery, including tools, fasteners, paint and other supplies that easily fit in a car, will have that option enabled at online checkout," the company said in a statement. The company is aiming to provide customers with same- or next-day delivery options no matter what the product, from a box of nails to appliances. Home Depot's online sales rose 86% in fiscal 2020 and more than half those orders were fulfilled through its network of 2,300 stores. Home Depot shares were down 0.9% premarket but have gained 24% in the year to date, while the Dow Jones Industrial Average has gained 12%.
4:39 a.m. Sept. 23, 2021 - By Tomi Kilgore
Brink's stock sinks toward 10-month low after revenue outlook cutShares of Brink's Co. dropped 2.5% toward a 10-month low in morning trading Thursday, putting them on track for a six-straight loss, after the secure cash logistics and management company cut its 2021 revenue outlook, citing the continued negative effects of the COVID-19 pandemic overseas and labor shortages and inflationary pressures in the U.S. The company now expects 2021 revenue of $4.10 billion to $4.20 billion, down from the guidance range provided in July of $4.20 billion to $4.60 billion, and below the current FactSet consensus of $4.34 billion. The company expects third-quarter revenue of $1.03 billion to $1.07 billion, below the FactSet consensus of $1.12 billion, and sees fourth-quarter revenue of $1.04 billion to $1.10 billion, compared with expectations of $1.19 billion. The company said it has increased selling prices in the U.S., which it expects when fully implemented to offset wage increases. The stock has slumped 16.2% oer the past three months, while the S&P 500 has gained 4.3%.
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