Stocks to Watch: AIG, LM, BMY & More
Take a look at some of Tuesday’s morning movers:
American International Group - The Treasury Department sold nearly 554 million shares at $32.50 each, or a total of about $18 billion. The government’s stake in AIG is now less than 22 percent, down from about 53 percent before the sale, and the Treasury has now recovered nearly $195 billion, more than the $182 billion cost of the bailout.
Legg Mason - Chairman/Chief Executive Officer Mark Fetting will step down on Oct. 1. Lead independent director Allen Reed will become non-executive chairman, with head of global distribution Joe Sullivan becoming interim CEO while the board searches for a permanent replacement.
Bristol-Myers Squibb - The drugmaker's stock has been upgraded to "Conviction Buy" from "buy" at Goldman Sachs, seeing "numerous growth catalysts" over the next 12 months.
Burberry - The luxury goods maker says its profits for the year will come in at the low end of analysts’ estimates. Burberry saw 6 percent growth in sales over the latest 10-week reporting period, but half that growth was due to new store openings. Burberry says the external environment is becoming "more challenging."
Philips Electronics - The electronics maker is planning to cut another 2,200 jobs by 2014 to save $383 million per year. That's on top of 4,500 cuts the company had already planned to implement between 2011 and 2014.
AmerisourceBergen - Goldman has downgraded the pharmacy services company's shares to "neutral" from "Conviction Buy" on a valuation basis.
Five Below - The company beat estimates with both its second quarter earnings and revenue, but nonetheless, the specialty retailer took an after-hours hit. The stock had run up about 10 percent last week in anticipation of upbeat earnings.
Shuffle Master - Shuffle Master earned $0.18 per share for its third quarter, two cents below estimates, with revenue also below consensus. The gambling equipment maker continues to see strong demand for its products, and profits did rise 14 percent from a year earlier, but analysts were anticipating even better results.
Federated Investors - Federated has closed on a previously announced deal to acquire $4.4 billion in assets from a subsidiary of Fifth Third Bancorp.
Zynga - Zynga has lost another high level executive, with Chief Marketing Officer Jeff Karp resigning. He follows Chief Operating Officer John Schappert and Chief Creative Officer Mike Verdu in leaving the social games creator in the last month.
Palo Alto Networks - The security software maker earned $0.03 per share, excluding certain items, for its fourth quarter, versus analysts' forecasts of a breakeven performance. Revenue was also above estimates, but the stock is under pressure as the company's revenue growth rate slowed from prior quarters.
Sanofi - The drugmaker's vaccine against dengue fever is proving less effective than hoped in clinical trials, according to researchers. Sanofi has previously said that the vaccine could generate about $1.3 billion in yearly sales.
A JPMorgan Chase report says the iPhone 5 could add 0.33 percent or more to gross domestic product for the fourth quarter all by itself. Apple is expected to release the new phone at an event tomorrow.
—By CNBC’s Peter Schacknow
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