Tech Industry

Puma Technology soars on stock split

Software developer Puma Technology Inc. (Nasdaq: PUMA) shot up 13 1/8, or 11 percent, to 133 Wednesday after its board of directors approved a 2-for-1 stock split.

The announcement comes a day before the maker of mobile device management software will report its second quarter earnings.

First Call consensus is expecting a loss of 7 cents a share compared to a profit of 9 cents a share in the first quarter.

The stock split, which will be affected as a stock dividend, will be paid to shareholders of record on March 8. Each holder will be issued a certificate for one share for each share of common stock held on the record date.

After the split, Puma will have about 31.2 million shares of common stock outstanding, excluding an additional 10 million shares reserved for issuance upon the closing of its acquisition of NetMind Technologies Inc. adjusted on a post-split basis.

The pending acquisition of NetMind is expected to close in the third fiscal quarter.

Puma shares fell to a 52-week low of 3 3/4 in March before soaring to an all-time high of 142 1/2 in December.

All three analysts tracking the stock rate it a "strong buy."

Analysts expect it to earn 43 cents a share in the fiscal year.