PairGain Hits Record High on Strong Earnings and Stock Split

Shares of PairGain Technologies Inc. rose 4.9% Wednesday to a record high of $80.50 a share as Wall Street traders clamored for the stock after the company posted better-than-expected first-quarter earnings and declared a 2-for-1 stock split.

In addition, Hambrecht & Quist analyst Joe Noel reiterated his “strong buy” rating for shares of the Tustin company, whose technology increases the data capacity of telecommunications networks.

PairGain shares rose $3.75 in heavy Nasdaq market trading and reached an all-time high of $84 a share during the day before falling back. Altogether, 847,600 shares traded hands, more than three times the daily average for the last three months of 267,400 shares.

PairGain waited until after the market closed Tuesday before releasing its first-quarter results. Its net income rose to $6.3 million from $3.1 million a year ago. Sales rose to $40.5 million from $19.1 million.