Stock Spotlight: Zynga and Dell BOUNCE of Bottoms, J&J Dow’s Diamond
Dell Inc. (NASDAQ:DELL) shares gained 3.93 percent as of mid-day trading. The company announced it is issuing a quarterly dividend of 8 cents per share. The amount equates to a yield of roughly 2.7 percent. “Our efforts to streamline our operations and shift the mix of our business over the past several years have resulted in sustainably strong cash flow from operations, enabling us to increase the percentage of capital we’ve allocated to research and development, capital expenditures and acquisitions while maintaining an ongoing share repurchase program,” Dell’s CFO Brian Gladden said.
Shares of Zynga Inc. (NASDAQ:ZNGA) are trading higher 2 percent at mid-day. Yesterday, the social-gaming company closed more than 10 percent lower. Analyst Doug Creutz from Cowen & Company said that the company’s daily active users dropped 8.2 percent in May, representing the second consecutive month of significant declines, as more people switch from Facebook (NASDAQ:FB) gaming to mobile gaming.
McDonald’s Corp. (NYSE:MCD) shares climb 1 percent in noon trading. The fast-food giant received a downgrade from Goldman Sachs (NYSE:GS) to Neutral from Buy, based on its forecast that the company’s same-store sales will remain weak. Analysts also lowered earning estimates and placed a price target of $92 to $100 on shares.
Johnson & Johnson (NYSE:JNJ) shares increased 1 percent as of mid-day trading. The company announced that is now expects its acquisition of Synthes to add profit this year. The impact of the acquisition on J&J earnings, as per the original S-4 filing, then based on 2010 figures, was a dilutive 22 cents a share. According to latest estimates, the acquisition would be accretive to 2012 earnings by about 3 cents to 5 cents a share. Also, Johnson & Johnson received upgrades from JPMorgan (NYSE:JPM), Raymond James and Jefferies.
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