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Major Movers on June 10; STEL, IHS, FB, RFMD, MCD

Shares of Stellarone Corp. (NASDAQ: STEL) rallied about 16.35% by afternoon trade on Monday. The Company announced on Monday that it has agreed to be acquired by Union First Market Bankshares Corp in deal valued at about $445 million. According to the terms of the deal, Union First will offer one share against each share held in Stellarone, which translates into $19.50 or 20% premium over the closing stock price on Friday. The merger of Richmond Va. based Union First and Charlottesville Va. based Stellarone will result into a largest Virginia based community bank in term of deposits. The amalgamation will result into 146 branches, deposits worth $5.8 billion, loans worth $5.2 billion, and total assets are estimated to be at $7.1 billion.

Shares of IHS Inc. (NYSE: IHS) gained about 1.65% by afternoon trade. The business information provider said that it plans to acquire R.L. Polk & Co in both cash and stock deal estimated at $1.4 billion. According to the Wall Street Journal, people familiar with Polk’s business had earlier estimated Polk at $1 billion. On Sunday, Polk confirmed the deal. IHS said that it will finance the acquisition through 10% equity, cash from existing sources, cash in hand and new bank term loan.

Shares of Facebook Inc. (NASDAQ: FB) were up about 4.80% by afternoon trade. Stifel Nicholas analyst Jordan Rohan upgraded the stock to “buy” from “hold” on Monday, hoping that it would be soon included in the S&P 500 list. The firm has set a price target of $29, which implies 25% upside from the current price. Rohan added that if all of the positive catalysts seen by him become reality in coming days then the target price might prove to be a conservative one.

Shares of R F Devices Inc. (NASDAQ: RFMD) climbed about 4.30% by afternoon trade. Research analysts at Charter Equity lifted their rating on the stock to “strong buy” from “buy” on Monday. Earlier on April 25, analysts at BNP Paribas increased their price target on the stock to $7.00 from $6.50. BNP Paribas currently has a “buy” rating. On April 24, analysts at Oppenheimer boosted the price target on the stock to $8.00 from $7.00. The firm currently maintains “outperform” rating on the stock. Overall, twelve analysts maintain “buy” rating on the stock, four have assigned “hold” rating, one keeps “sell” rating and one has issued “strong buy”. On average, the stock has a “buy” rating with a price target of $6.64.

Shares of McDonald’s Corp. (NYSE: MCD) edged up 1.25% by mid-day trade. The world’s largets hamburger chain said on Monday that its same-store-sales increased 2.6%, globally, in May. Analysts’ consensus estimate was for 1.9% growth. The Company said that inclusion of new items, more advertising of “value-meals” and marketing efforts like expanded late night breakfasts helped to drive up the same-store-sales. Same-store-sales grew at a better-than-expected rate both in the U.S. and Europe. However, combined same-store-sales growth in Asia Pacific, the Middle East and Africa missed analysts’ expectation.

 

 


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