BRIEF: Mellanox offers senior employees 1.5m shares
Aug 05, 2012 (Menafn - Globes - McClatchy-Tribune Information Services via COMTEX) --Mellanox Technologies Ltd. MLNX(tase:MLNX) will offer senior employees up to 1.5 million shares, as part of the update of its employee compensation plan, approved in May. The shares will be allotted at a 15 percent discount on the share price. Mellanox's share price has risen 221 percent since the beginning of the year.
Mellanox will offer the shares at a maximum price of 99.27, for a total offering of 148.9 million.
Notwithstanding optimism by Mellanox executives and analysts covering the company, several executives have recently sold shares for millions of dollars.
Mellanox's share price rose over 50 percent after the company published its financial report in late July. In response, Clal Finance raised its target price for the share to 140 and DS Brokerage initiated coverage with an "Outperform" recommendation and target price of 120. It predicts 106 percent revenue growth in 2012, compared with 2011, and net profit growth of almost 250 percent.
Mellanox's share price rose 3.9 percent by midday on the TASE today to NIS 429.30, after rising 2.3 percent on Nasdaq on Friday to 106.92, giving a market cap of 4.4 billion.
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