[PRNewswire] AOL Inc (NYSE:AOL)(TREND ANALYSIS) Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of AOL, Inc. (“AOL” or the “Company”) (AOL) for potential breaches of fiduciary duties in connection with the sale of the Company to Verizon Communications, Inc. (“Verizon”) (VZ) for approximately $4.4 billion. The Company’s stockholders will receive $50 in cash for each share of AOL common stock they own. Analysts have set price targets as high as $67 per share of AOL, $17 higher than the valuation the deal gives to the same shares.
The investigation focuses on whether AOL’s Board of Directors breached their fiduciary duties to the Company’s stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of AOL’s shareholders.
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AOL Inc (NYSE:AOL) is currently trading 1.1% below its 52-week-high, 41.18% above its 52-week-low. The 1-year range for the stock is $35.6 – $50.82. AOL Inc (AOL) has a price to earnings ratio of 33.57 versus Technology sector average of 17.04. AOL stock price has outperformed the S&P 500 by 5.3%. The Web Portals & ISP company is currently valued at $3.94 billion and its share price closed the last trading session at $50.26. The stock has a 50-day moving average of $42.42 and a 200-day moving average of $43.44.
AOL Inc (AOL) current short interest stands at 4.21 million shares. It has increased by 1% from the same period of last month. Around 6% of the company’s shares, which are float, are short sold. With a 10-days average volume of 7.55 million shares, the number of days required to cover the short positions stand at 0.6 day.
AOL reported last quarter earnings on May 08. The Web Portals & ISP company announced earnings per share of $0.23 against a consensus Street estimate of $0.23, matching the average estimate. This corresponds to a decrease of $0.25 compared to the same quarter of the previous fiscal year.
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There are currently twenty analysts that cover AOL stock. Of those twenty, two have a Buy rating, sixteen have a Hold rating and two have a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $49.58.
A recent analyst activity consisted of UBS who initiated their coverage on the stock with Neutral rating on May 14. UBS fixed their price target at $50. This corresponds to a 0.52% downside from the last closing price. On the date of report, the stock closed at $50.75.
Another research firm was Deutsche Bank who downgraded their Buy rating to Hold on May 13. Deutsche Bank increased their price target on AOL Inc from $45 to $50. This translates to a 0.52% downside from the last closing price. On the date of report, the stock closed at $50.77.
Company profile
AOL Inc is a web services company. The Company’s business spans online content, products and services that the company offers consumers, publishers and advertisers. AOL focuses on attracting consumers and providing online advertising services on company owned and operated properties as well as third party websites. AOL also operates an internet subscription access service.
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