Hot Topic Will Split Its Shares
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Shareholders of Industry-based Hot Topic Inc. have plenty to talk about these days.
On Wednesday, the seller of music-related apparel, accessories and gift items aimed at 12- to 22-year-old consumers declared a 2-for-1 split of its volatile shares.
After losing ground in 1998, the stock has more than tripled this year. The company’s first-ever split will take place Dec. 27 for holders of record Dec. 13.
Hot Topic also said November sales rose 72% to $13.4 million, versus $7.8 million a year ago, and that same-store sales rose 31%. Same-store sales, a key gauge for retailers, track those stores open at least a year.
Just four Wall Street analysts follow Hot Topic, but all rate it a “buy.”
However, with the stock near its peak, several company insiders, including Chief Executive Orv Madden, filed to sell shares in November, according to the Washington Service, which tracks such transactions.
In Wednesday’s Nasdaq trading before the split and sales announcements, the stock (ticker symbol: HOTT) slipped $1.06 to close at $43.13.
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