Top Gainers: Ultimate Software, Roku, Papa John's Rally
Published Feb 04, 2019 02:42PM ET
Updated Feb 04, 2019 03:22PM ET
Investing.com – Ultimate Software, Roku and Papa John's shares were rallying into the close on Monday, keeping the broader market on track to close higher for the day.
The Ultimate Software (NASDAQ:ULTI), which makes cloud-based human resources management software, rallied 20% after it accepted a $331.50-a-share takeover offer from a Hellman & Friedman led consortium. The consortium plans to take the company private.
The $11-billion deal also included a 50-day "go shop" period, which analysts said added an element of uncertainty as to the outcome of the deal.
"The all-cash deal has been approved by Ultimate Software's Board of Directors but does include a 50-day 'go shop provision to add a minor amount of deal uncertainty," Roth Capital said in a note as it downgraded its rating on the company to neutral, citing the share price was trading close to its target of $330.
Roku (NASDAQ:ROKU) soared to a three-month high, rising 9% to about $49.25, on a report that Comcast (NASDAQ:CMCSA) was looking at deploying Roku's smart box infrastructure rather than an Apple (NASDAQ:AAPL) TV platform for its future streaming cable systems. The price is still 36% below its 52-week high, reached on Oct. 1.
Comcast reportedly told Apple about its plans in December, shortly after buying U.K. broadcaster Sky, according to media reports.
Roku also announced that Mustafa Ozgen, currently CEO of SmartKem Limited, would replace senior VP and general manager of Roku TVs and Player, Chas Smith.
Pizza delivery company Papa John's (NASDAQ:PZZA) surged about 9% as traders welcomed news the company had received a $200 million investment, with an option for an additional $50 million by March 29, from Starboard Value through a new securities purchase agreement.
As part of the investment, Papa John's will name Starboard Value CEO Jeffrey Smith as its new chairman. It also will add Anthony Sanfilippo, former CEO of the gaming company Pinnacle Entertainment, to the board.
The investment will help shore up the pizza delivery company's finances at a time when low franchisee profitability continues to weigh.
The pizza delivery company also announced system-wide North America comp sales decreased 8.1% in the fourth quarter, while system-wide International comp sales decreased 2.6%.
The shares are off nearly 35% from their 52-week high, reached a year ago.
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Written By: Investing.com
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