Analyst upgrades Advent after dividend news
NEW YORK (AP) — Wedbush Morgan analyst Gil Luria on Friday upgraded Advent Software Inc., a maker of software for the financial industry, to "Outperform" from "Neutral," saying the announcement of a special dividend provides value to shareholders.
Advent on Thursday said it would give shareholders $9 per share, or about $470 million in total. The company is financing the dividend through a $425 million credit facility.
The dividend is payable on July 9 to shareholders of record on July 1. The move allows the company to take advantage of its stable, resilient cash flow, Luria said.
The move also reduces the uncertainty around the ownership of the company, Luria said. The company had been the subject of takeover speculation.
Luria raised his price target on the shares from $27 to $38. He expects the San Francisco-based company to grow earnings per share by more than 10 percent year-over-year, as it takes advantage of its market position and upcoming products.
Advent shares fell 12 cents, or 0.4 percent, to $32.87 in afternoon trading.