Carlo Gavazzi Rises Most in 17 Months on Dividend: Zurich Mover
Carlo Gavazzi Holding AG (GAV), a Swiss maker of electronic equipment including sensors and safety devices, rose the most in 17 months after proposing an extraordinary dividend.
The stock rose as much as 9.3 percent, the biggest intraday advance since January 2012. The shares were up 6.8 percent at 229.70 Swiss francs as of 12:45 p.m. in Zurich, giving the Steinhausen-based company a market value of 163 million francs ($172 million). More than 6,700 shares changed hands, or about 12 times the three-month daily average.
Carlo Gavazzi proposed an extraordinary dividend of 15 francs per bearer share and 3 francs per registered share because of the company’s strong net cash position. That’s on top of an ordinary dividend of 10 francs per bearer share and 2 francs per registered share.
The dividend “shows that despite the cautious outlook the company is fundamentally optimistic about the future,” Richard Frei, an analyst at Zuercher Kantonalbank, wrote in a note to investors. Results for the year ended March 31 were mostly in line with expectations, he said.
To contact the reporter on this story: Patrick Winters in Zurich at email@example.com
To contact the editor responsible for this story: Simon Thiel at firstname.lastname@example.org