Afternoon Market Update (LULU, QLGC, MMM, COGT)
US Retail stocks fell after the data showing lesser-than-expected increase in personal income for the month of July. Shares of Lululemon Athletica Inc (NASDAQ: LULU) dropped about 8.5% after Jefferies & Co downgraded the company from “hold” to “underperform.” The analysts have also lowered its target price on the company to $30 from $38 per share.
Shares of QLogic Corp (NASDAQ: QLGC) gained after its board authorized an increased buyback of $200 million of its common stock over two years. QLGC’s shares rose about 2% following the news.
3M Co (NYSE: MMM) has entered into an agreement to acquire Cogent Inc (NASDAQ: COGT) for $943 million or $10.50 per share, representing an 18% premium to COGT’s closing price on Friday. MMM is expecting the deal to be closed in the fourth quarter. Mike Delkoski, vice president and general manager of 3M Security Systems, said, “Adding Cogent strengthens our product portfolio and services in high-security credential issuance and authentication systems and positions 3M's business in law-enforcement applications." He added, "It also expands our reach into access control and other commercial ID and authentication applications." COGT’s shares jumped about 20% following the news.
Read more from Benzinga's Markets.
