Buzz Stocks: Symantec, Symetra Financial, and Terex

Today's stocks to watch in the news feature Symantec Corporation (SYMC), Symetra Financial Corporation (SYA), and Terex Corporation (TEX)

Aug 11, 2015 at 9:29 AM
facebook twitter linkedin

U.S. stocks are set to start lower after the People's Bank of China's decision to devalue the yuan. In company news, today's stocks to watch include information security company Symantec Corporation (NASDAQ:SYMC), insurance firm Symetra Financial Corporation (NYSE:SYA), and construction company Terex Corporation (NYSE:TEX).

  • This morning, SYMC reported fiscal first-quarter earnings and announced that it agreed to sell its Veritas business to The Carlyle Group LP (NASDAQ:CG) for $8 billion. Symantec Corporation will use the money to fund its cybersecurity work and to buy back shares. After the transaction closes, SYMC expects to receive roughly $6.3 billion in net cash. Technically, SYMC is pointed 1% higher ahead of the bell, after closing at $22.91 Monday. The stock faces overhead resistance from its 10-week moving average, which has pushed the shares lower since late May. While analysts are skeptical about SYMC (17 of 20 rate it a "hold" or worse), option players are bullishly aligned. SYMC's Schaeffer's put/call open interest ratio (SOIR) of 0.56 is lower than 89% of the readings taken in the past year.

  • SYA announced this morning that it has agreed to be acquired by Sumitomo Life Insurance Company. In the agreement, Symetra Financial Corporation shareholders will receive $32 per share in cash and a previously announced special dividend of 50 cents per share -- making the total price tag $3.8 billion.  SYA closed yesterday at $29.52, but is set to gap 7.2% higher -- and hit a record peak -- this morning.

  • Finally, TEX announced that it is going to merge with Finnish company Konecranes in an all-stock deal. The combined company will be called Konecranes Terex and will be a major supplier of cranes and equipment to the construction, mining, manufacturing, and shipping sectors. The new company will have an estimated revenue of roughly $10 billion and will employ roughly 32,000. Terex Corporation shareholders will own roughly 60% of the new company. TEX  is set to start the morning more than 24% higher, after closing at $21.83 on Monday.   

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners