Shares of Akamai Technologies, Inc.(AKAM, Financial) traded higher on Monday after activist fund Elliott Management disclosed a 6.5% stake in the company. Moreover, analysts at Credit Suisse upgraded the company to outperform from neutral and raised the price target to $75 from $55. Analyst Brad Zelnick cites an analysis in which an investor paying $80 per share would achieve an internal rate of return of 20% in five years.
Shares of Penn National Gaming Inc. (PENN, Financial) were down after the company announced it struck a deal to acquire Pinnacle Entertainment Inc. (PNK, Financial). The transaction is valued at $2.8 billion and will generate $100 million in synergies.
Under the terms of the agreement, Pinnacle shareholders will receive $20 in cash and 0.42 shares of Penn National common stock for each Pinnacle share. The transaction will be closed in the second quarter of 2018.
“By combining our highly complementary portfolios and similar operating philosophies, we will be able to leverage the strengths of both our companies and create an unparalleled experience for our regional gaming customers, while generating significant value for our shareholders and business partners,” Penn National CEO Timothy J. Wilmott said.
He is confident about the future benefits from a higher scale, additional growth opportunities and best-in-class operations, which should lead to an efficient integrated gaming company.
Another stock with upside movement was Pfizer Inc. (PFE, Financial)Â after the board of directors declared a dividend hike. The new dividend will be 34 cents per share, for a total of $1.36 per annum. The board also authorized a $10 billion share repurchase program. This new program is in addition to the $6.4 billion remaining under the current authorization.
Disclosure: The author holds no positions in any stocks mentioned.
