Buzz Stocks: Infoblox, Avnet, Isle of Capri Casinos

Today's stocks to watch in the news include Infoblox Inc (BLOX), Avnet, Inc. (AVT), and Isle of Capri Casinos (ISLE)

Sep 19, 2016 at 9:28 AM
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Stocks are signaling a strong start to the week, as traders cheer a rally in oil futures. Among specific equities in focus on this Merger Monday are network solutions specialist Infoblox Inc (NYSE:BLOX), tech stock Avnet, Inc. (NYSE:AVT), and casino issue Isle of Capri Casinos (NASDAQ:ISLE).

  • BLOX is up 15% in electronic trading -- on track to tap a new 12-month high -- after the company agreed to be bought by Vista Equity Partners in a deal valued at $1.6 billion, or $26.50 per share --- a 16% premium over Infoblox Inc's Friday close of $22.83. Rumors the company would sell itself had the stock rallying in recent weeks, hitting an annual high at $23.37 just last Wednesday. Lingering short sellers may be wishing they had hit the bricks earlier, though. At the moment, more than 9% of BLOX's total float is tied up in these bearish bets -- representing nearly a week's worth of trading, at the stock's typical daily volume.

  • AVT is set to pop 9.6% higher at the bell, on news it will sell its technology solutions business to Tech Data Corp (NASDAQ:TECD) in a $2.8 billion cash-and-stock deal. The shares of AVT have had a choppy year so far, currently down 8.5% in 2016 as of last week's finish at $39.21, but have found an area of support at the $39 level. Still, analysts don't appear to think much of Avnet, Inc. Of the eight brokerage firms providing coverage, just two maintain a rating better than "hold."

  • ISLE has added a whopping 30.5% in pre-market trading -- on pace to hit a fresh nine-year high at the open -- following news it will be bought by sector peer Eldorado Resorts Inc (NASDAQ:ERI) in a cash-and-stock deal worth $1.7 billion, or $23 per ISLE share -- a 35.8% premium over the stock's Friday settlement at $16.93. Isle of Capri Casinos is already up 21.5% year-to-date, and the shares recently found a foothold above their 120-day moving average. But the stock has been slumping in recent months, even while some other casino stocks soared.

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