Proxy firm blames target board
Proxy advisory firm Institutional Shareholder Services last week recommended that Target shareholders vote against seven of Target Corp.’s 10 directors, saying the board failed to protect the company against last fall’s data breach.
Stanford University business professor David Larcker told the Star Tribune that such recommendations can have an effect at annual meetings. “It can move the vote 20 to 30 percent,” he said. “That can be a pretty big number.”
More cuts at Hutchinson Tech
Hutchinson Technology announced another 100 layoffs May 20. The reduction is expected to save the company $1.5 million per quarter on top of previously announced cost cuts that are expected to save $2.5 million a quarter.
Needham & Co. analyst Richard Kugele wrote in a research note that the total savings will bring the company closer to profitability. “However, meaningful top-line growth remains elusive,” he added.
Still a hold on Silver Bay Realty
Silver Bay Realty Trust in Minnetonka is focused on the acquisition, renovation, leasing and management of single-family properties for rental income and long-term capital appreciation.
J.P. Morgan analyst Anthony Paolone initiated his coverage in January 2013 with a “hold” rating. While Paolone likes Silver Bay’s business model, he isn’t ready to change his recommendation.
He maintained his “hold” rating last week, saying: “While we like the idea of institutionalizing the single-family rental market ... SBY’s small size and need to ramp up its operations and financing plan gives us pause.”