COMM - CommScope gains after amending severance plan for change in control

CommScope ( NASDAQ: COMM ) rose 2.7% after the company filed an 8-K on Wednesday on an amended severance agreement for executives, including CEO Charles Treadway.

The newly revised agreement includes a bigger payout in the event of a change-in-control, according to the 8-K. The severance amount will be two times (three times for Treadway) the sum of the executive’s base salary and target bonus.

Some investors have seen the severance/change in control language in filings in the past in other companies to be a sign of a potential takeover, though often times it's not the case.

CommScope didn't immediately respond to Seeking Alpha email request for comment.

On Tuesday CommScope ( COMM ) popped up 3.4% as Credit Suisse upgraded the fiber optic cable company to outperform from neutral, noting it is likely going to benefit from "multi-year tailwinds" ahead of it.

Analysts are mostly cautious on CommScope Holding ( COMM ). It has a HOLD rating from Seeking Alpha authors , while Wall Street analysts rate it a HOLD . Conversely, Seeking Alpha's quant system, which consistently beats the market, rates COMM a STRONG BUY .

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