Avon Products Shares Soar amid L’Oreal Takeover Rumors (AVP)
Beauty products maker Avon Products, Inc.'s( AVP
According the to the report, Avon is drawing considerable interest from multiple suitors. Early estimates peg a possible buyout price of around $44 per share, which would be a 33% premium over AVP's Monday closing price of $33.16.
Avon Products shares rose $2.75, or +8.3%, in premarket trading Tuesday.
The Bottom Line
We removed shares of AVP from our "recommended" list way back on Oct.2, 2008, when the stock was trading at $41.23. The company has a 2.65% dividend yield, based on last night's closing stock price of $33.16. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $40-$42 price levels. We would remain on the sidelines for now
Avon Products, Inc.( AVP
) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
