Shares of IAC/InterActiveCorp spiked 14.1% on Tuesday after the media and internet company announced plans to spin off its ownership in video software company Vimeo.
IAC (IAC) said that following the spin-off, Vimeo will become a separately-traded public company. The proposed spin-off is still awaiting final approval by IAC's board.
The company said that the proposed spin-off will be reviewed during a shareholder meeting scheduled for the first quarter of 2021. IAC expects to approve the transaction in the second quarter of 2021.
IAC’s CEO Joey Levin said, “The combination of Vimeo's remarkable growth, solid leadership position, and enormous market opportunity have made clear its future.” He added, “It's time for Vimeo to spread its wings and become a great independent public company.” (See IAC stock analysis on TipRanks)
Following the Vimeo spin-off proposal, Oppenheimer analyst Jason Helfstein lifted the stock's price target to $210 (14.3% upside potential) from $150 and maintained a Buy rating. The analyst said, “As a result of the deal, we believe Vimeo will be worth ~$6.3B, implying 17.0x '21E EV/revenue.” He added that, “In our view, 17.0x is achievable as Vimeo is growing '20E-'22E revenue at 29.2%, 9% faster than the comparable group, with investors also showing a willingness to pay for mid-cap SaaS companies.”
Currently, most of the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 14 unanimous Buys. The average price target stands at $182.71 and implies that the shares are fully priced at current levels. Shares have gained 72.2% since the company separated from the Match Group and started trading on NASDAQ on July 1 this year.
Related News:
HMS Jumps 8% On $3.4B Gainwell Deal; Baird Cuts To Hold
Monmouth Gains After Blackwells Sweetens $1.77B Buyout Offer; BMO Says Hold
Peloton Shares Pop 8% On Precor Acquisition; Street Stays Bullish
Converge Technology Solutions announced on Dec. 22 that it has completed the acquisition of Vivvo Application Studios. Shares of the North American IT solution provider closed 5.3% higher on Tuesday.
Vivvo is a Canadian technology innovation company, which helps businesses fast-track their digital transformation.
“The integration of Vivvo’s solutions with our existing platform and our ongoing research and development efforts in Gatineau will position Converge as a leader in the next generation digital identity product market,” said Converge Technology (TSE: CTS) CTO Don Cuthbertson.
Converge noted that the Vivvo acquisition will accelerate the marketing of its TrustBuilder Platform, Digital Identity and Privacy solution offerings based in Gatineau.
Earlier this week, Echelon Wealth Partners analyst Rob Goff reiterated a speculative Buy rating on the stock and raised the price target from C$4.60 to C$4.90.
Goff is enthusiastic about the company's strategic accretive acquisitions, including IBM Analytics consulting and Alteryx Preferred Partner CarpeDatum Consulting, and the geographical synergies they will generate. (See TSE: CTS stock analysis on TipRanks)
"We expect the move to strengthen CTS’ relationship with IBM (IBM) as it is a core component of CarpeDatum while introducing CTS to Alteryx. The business is roughly evenly split across the three locations. The locations can leverage CTS’s operations in Denver (Corus360, Workgroup Connections), LA (KeyInfo) and its recently acquired Unique Digital in Texas," Goff wrote in a note to investors.
“As per its model, CTS has been working with CarpeDatum over the past 6 months and is confident in cross-selling revenues extending in both directions. CarpeDatum’s financial planning software and high-end consulting will align with CTS’ analytics capabilities and IBM software stack.” the analyst added.
From the rest of the Street, the stock scores a Strong Buy analyst consensus based on 3 unanimous Buys. The average price target of C$5.03 implies upside potential of 20% to current levels.
Related News:
Electrocore Inks Distribution Deal For Migraine Treatment In Eastern Europe; Shares Surge 8%
Mesa Air November Block Hours Drop 38% Hit By Pandemic; Shares Fall
ConocoPhillips Announces New Oil Discovery; Street Sees 25% Upside
Alaska Air announced on Tuesday that it has agreed to buy an additional 23 Boeing 737 MAX aircraft. With this order, the airline intends to replace its older Airbus A320 aircraft fleet, which it had adopted following the acquisition of Virgin America in 2016.
Alaska Air (ALK) said that the order, including the 737-9 model of MAX series aircraft, will enable it to move “toward a more efficient, all-Boeing mainline fleet.” According to the company, “The 737-9 is a member of the 737 MAX family that is designed to offer more fuel efficiency, reliability and flexibility in the single-aisle airplane market.”
The new deal will boost Alaska Air's total order to 68 Boeing (BA) 737 MAX jets. The company also has an option to buy an additional 52 aircraft.
Brad Tilden, CEO of Alaska Air said, "We believe in this airplane, we believe in our strong partnership with Boeing, and we believe in the future of Alaska Airlines and the incredible opportunities ahead as we climb our way out of this pandemic." (See ALK stock analysis on TipRanks)
On Nov. 30, Raymond James analyst Savanthi Syth raised the stock’s price target to $65 (29.1% upside potential) from $50 and reiterated a Buy rating. In a note to investors, Syth said that the stock’s risk-reward scenario looks compelling given the air carrier’s low-cost and capital-efficient operations and domestic focus.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 6 Buys and 3 Holds. The average price target stands at $55 and implies upside potential of about 9.2% to current levels. Shares have fallen 25.7% year-to-date.
Related News:
Alaska Air’s Cash Burn Rises As Travel Demand Stalls; Street Sees 11% Upside
Lockheed Martin Snaps Up Aerojet Rocketdyne For $4.4B; Street Sees 17% Upside
Boeing Wins Fourth Contract With Singapore Air Force; Shares Down 33% YTD
Honeywell International announced the acquisition of privately-held Sparta Systems, an enterprise quality management software company, from New Mountain Capital, in a $1.3 billion cash deal.
Honeywell (HON) said that it intends to utilize Sparta Systems’ software-as-a-service (SaaS) platform to enhance its life sciences division capabilities and expand into newer markets.
"Sparta Systems is an ideal complement to our life sciences portfolio," said Rajeev Gautam, CEO of Honeywell Performance Materials and Technologies. "While Sparta's capabilities will initially help us expand our capabilities for our existing breakthrough initiative in life sciences, we plan to leverage Honeywell's global footprint and expertise to quickly expand Sparta's capabilities to serve other markets.”
The multinational conglomerate expects the transaction to be completed in the first quarter of 2021. Honeywell stated that there would be no change in its 2020 financial outlook following the acquisition. (See HON stock analysis on TipRanks).
Last month, Robert W. Baird analyst Peter Arment raised the stock’s price target to $221 (6.3% upside potential) from $167 and reiterated a Buy rating. Arment believes that a recovery in growth along with cost-cutting initiatives are likely to boost Honeywell’s earnings over the long-term. The analyst also expects the company to go for significant merger & acquisition activities next year.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 9 Buys and 6 Holds. The average price target stands at $209.64 and implies that shares are almost fully priced at current levels. Shares have gained 17.5% year-to-date.
Related News:
Thor Industries Buys Tiffin Group For $300M; Street Remains Bullish
Monmouth Gains After Blackwells Sweetens $1.77B Buyout Offer; BMO Says Hold
HMS Jumps 8% On $3.4B Gainwell Deal; Baird Cuts To Hold
U.S. Bancorp approved a share buyback plan of up to $3 billion, beginning from Jan. 1. The move followed the Federal Reserve’s bank stress test results of December 2020, which lifted restrictions on share repurchases.
U.S. Bancorp (USB) said that “it will utilize the share repurchase program at its discretion as it continues to monitor the economic environment, manage to its long-term earnings distribution targets while maintaining strong capital levels and remain in compliance with regulatory requirements.”
Further, the company’s board intends to maintain its quarterly dividend of $0.42 per share, which equates to an annual dividend of $1.68 per share and reflects a dividend yield of 3.7%.
U.S. Bancorp's CEO Andy Cecere said, “The results of this stress test reflect again, the strength of our balance sheet, our diverse businesses and our strong financial discipline.” (See USB stock analysis on TipRanks)
On Dec. 11, Credit Suisse analyst Susan Roth Katzke upgraded the stock to Hold from Sell and raised the price target to $49 (7.5% upside potential), up from $41, citing positive data related to COVID-19 vaccine. The analyst estimated that the stock has more than 10% total return potential.
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 6 Buys and 6 Holds. The average price target stands at $50.85 and implies upside potential of about 11.5% to current levels. Shares have declined 23.1% year-to-date.
Related News:
BNY Mellon To Resume Stock Buybacks; Shares Rise 5%
Morgan Stanley To Kick Off $10B Share Buyback After Fed Call; Shares Jump 5%
Citigroup To Resume Share Buyback Plans in 1Q; Shares Climb 5%
Shares of CarMax sank 8.1% on Tuesday after the used-car retailer surprised the Street with a decline in third-quarter same-store sales due to the COVID-19 impact. Meanwhile, total revenue and EPS came ahead of analysts' estimates.
CarMax's (KMX) same-store used unit sales fell 0.8% in the quarter versus the 11% increase posted during the same period year ago quarter. Analysts had been looking for growth of 3.5% during the reported quarter.
The company said, “For the first part of the quarter, we achieved mid-single digit comparable store sales growth, continuing the positive momentum from the second quarter. However, demand softened and sales trended down in the latter part of the quarter,” primarily due to the adverse impact of COVID-19. (See KMX stock analysis on TipRanks)
Nevertheless, CarMax’s 3Q earnings of $1.42 per share came ahead of analysts’ estimates of $1.13 and increased 36.5% year-over-year. Its revenues of $5.2 billion topped the consensus estimate of about $5 billion and increased 8.2% year-over-year, reflecting a growth of 4.5% in total used sales. Moreover, its wholesale vehicle sales jumped by 35.6%.
CarMax’s CEO Bill Nash said, “Despite the near-term market challenges due to the trajectory of the pandemic, our fundamentals remain robust and reflect the strength of our diversified business model spanning retail, wholesale, and auto finance. This strength, combined with our emerging omni-channel experience, is a unique advantage in the used car industry that firmly positions us to continue growing our market share while creating shareholder value over the long-term.”
Following the results, Oppenheimer analyst Brian Nagel maintained a Buy rating and a price target of $130 (40.8% upside potential) on the stock. Nagel said, “KMX continues to transform its once traditional retail business into a digitally driven omni-channel model.” The analyst noted that, “underlying online trends at the company continue to strengthen.”
Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys, 1 Hold and 1 Sell. The average price target stands at $120.33 and implies upside potential of about 30.3% to current levels. Shares have risen by 5.3% year-to-date.
Related News:
Calavo Sinks 16% As 1Q Sales Outlook Lags Street Estimates
Heico Surprises With 4Q Profit Beat; Cowen Sticks To Hold
FactSet Beats 1Q Estimates But No Change In 2021 Outlook; Top Analyst Says Sell
TriplePoint Venture Growth declared a special dividend of $0.10 per share, payable on Jan. 13, 2021, to shareholders of record at the close of business on Dec. 31, 2020.
The special dividend represents a portion of TriplePoint Venture Growth’s (TPVG) estimated net capital gain income earned during the fiscal FY20.
The company declared distributions of $1.54 per share in FY20 reflecting a dividend yield of 12.3%.
The shareholders can either receive the dividend payment in cash or receive shares of common stock under the dividend reinvestment plan, the company said.
The FY20 dividend distribution brought the total cumulative distributions declared since its 2014 IPO to $10.06 per share.
The anticipated remaining undistributed net capital gain income along with the management investment company’s estimated undistributed taxable earnings from net investment income, of $10 million or $0.33 per share, as of Sep. 30, 2020, will trickle down into 2021, the company announced.
“The declaration of our third special distribution since our IPO highlights the powerful warrant and equity investment components of our returns and underscores TPVG’s differentiated business model.” said TriplePoint CEO Jim Labe.
Last month, JMP Securities analyst Devin Ryan resumed coverage of TPVG with a Buy rating and a price target of $13.
Ryan views the venture growth niche as "quite compelling", stating that TriplePoint has competitive advantages around both its experience and sourcing network. (See TPVG stock analysis on TipRanks)
Ryan added that TriplePoint's dividend yield exceeded that of Hercules Capital (HTGC) and Horizon Technology Finance (HRZN).
From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 2 unanimous Buys. The average analyst price target of $13.75 implies upside potential of close to 10% at current levels.
Related News:
Cognizant Buys IT Services Provider Inawisdom ; Shares Up 30% YTD
Riot Blockchain Spikes 10% On $35M Bitmain Order; Stock Up 886% YTD
Walmart Launches Free Return Pickup Service Via FedEx; Street Is Bullish