Coinstar Inc., owner of the Redbox movie rental kiosks, rose to an all-time closing high on enthusiasm for the company’s DVD expansion plans and streaming venture with Verizon Communications Inc.
Coinstar gained 2.6 percent to $70.46 at the close in New York, the highest since shares of the Bellevue, Washington-based company began trading in 1997. The stock has advanced 54 percent this year.
Investors are recognizing the benefits of Coinstar’s acquisition of NCR Corp.’s DVD rental business, which eliminated a large competitor, and its plans for the joint venture with Verizon, Eric Wold, a San Francisco-based analyst with B. Riley & Co., said today in an interview. The streaming business starts in August, Wold said.
“Investors are buying ahead of another round of good news to come,” said Wold, who recommends buying the stock.
Last month, Coinstar announced a joint venture with Starbucks Corp. to sell Seattle’s Best Coffee in vending machines in the U.S.