Apollo, Dean Foods, Rex Energy, Strayer: U.S. Equity Movers
Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 4 p.m. in New York.
Apollo Group Inc. (APOL) fell 1.6 percent to $42.49 for its biggest slide since Aug. 13. The largest operator of U.S. for-profit colleges said it is being sued by investors who claim the company made false statements about its business this year and last year that drove up the company’s stock price.
Other for-profit colleges fell after U.S. Senator Dick Durbin of Illinois said industry practices should be curbed. Strayer Education Inc. (STRA) fell 9.1 percent to $144.64. Career Education Corp. (CECO) slumped 2 percent to $17.53. DeVry Inc. (DV) declined 2.4 percent to $38.11.
Dean Foods Co. (DF) had the second-biggest gain the Standard & Poor’s 500 Index, rising 4.3 percent to $10.22. The biggest U.S. maker of dairy products is seeing increased activity in its options trading “surrounding unsubstantiated takeover rumors,” according to a note from Susquehanna International Group LLP. Trading of call options to buy the stock exceeded 5,300 contracts, or five times the four-week average. Barry Sievert, a Dean Foods spokesman, didn’t immediately return a call for comment.
Donaldson Company Inc. (DCI) fell 2.3 percent to $41.90, the lowest price since June 8. The maker of Dura-Life and Ultra-Web air filters said fiscal-year 2011 earnings may be as low as $2.28 a share, compared with the average analyst estimate of $2.48 a share. Fiscal fourth-quarter earnings beat the average estimate by 1 cent, according to a statement.
Isle of Capri Casinos Inc. (ISLE US) fell 21 percent, the most since October 2008, to $6.99. The operator of casinos in Mississippi, Louisiana and Iowa reported a fiscal first-quarter loss of 8 cents a share on revenue of $251.9 million, less than the $261.3 million average estimate in a Bloomberg survey.
Lions Gate Entertainment Corp. (LGF) rose 10 percent, the most since May 2009, to $7.14. Billionaire investor Carl Icahn, owner of about 33 percent of the movie studio, increased his offer to buy the remainder of the stock to $7.50 a share from $6.50.
Mediacom Communications Corp. (MCCC US) fell 15 percent, the most since March 2009, to $5.80. Rocco B. Commisso, the founder, chairman and chief executive officer of the cable television operator, said he withdrew his May 31 non-binding offer to purchase all the shares he doesn’t own.
Monsanto Co. (MON) slid 5.8 percent, the most since Oct. 26, to $52.65. The world’s largest seed company estimated it earned $2.45 a share at most in the fiscal year ending today, compared with a previous forecast of as much as $2.60 a share. Monsanto said it will record in the fourth quarter about $150 million of the $180 million of pretax costs to restructure its Roundup herbicide business.
NovaGold Resources Inc. (NG) rose 5.1 percent to $7.43, the highest price since June 28. Paulson & Co., the hedge-fund firm run by John Paulson, may seek talks with NovaGold’s management and board of directors as well as third parties, according to a filing today with the U.S. Securities and Exchange Commission. Paulson paid $113 million for its 9.1 percent stake in the mining company, the filing said.
Reckitt Benckiser Group Plc (RB/) rose 2.7 percent, the most since Aug. 2, to $10.11. The Slough, England-based maker of Nurofen painkillers said it received approval from U.S. regulators for a version of its Suboxone heroin-dependency medicine that dissolves under the tongue.
Research In Motion Ltd. (BB) lost 6 percent, the most since June 29, to $42.84. The Blackberry maker faces “a scary outlook” in the corporate market, Sanford C. Bernstein & Co. said in a note, which cited the segment’s high e-mail penetration and the threat from other smartphone makers.
Rex Energy Corp. (REXX) rallied 10 percent, the most since Dec. 7, to $11.31. Sumitomo Corp. will pay the oil and gas company $140.4 million for rights to Marcellus Shale assets in Pennsylvania as part of a joint venture.
Saks Inc. (SKS US) jumped 20 percent, the most since May 2009, to $7.90. The New York-based luxury retail chain may get a bid of $11 a share, or $1.7 billion, from a group of U.S. and U.K. private equity firms, the Daily Mail reported.
Skilled Healthcare Group Inc. (SKH) surged 36 percent, the most since July 8, to $3.36. A delay until Sept. 2 in Humboldt County, California court proceedings in a case against the nursing-home operator may signal a settlement is close, Arthur Henderson, an analyst at Jefferies & Co., said.
Winn-Dixie Stores Inc. (WINN US) fell 18 percent to $6.56, the lowest price since the company emerged from bankruptcy in 2006. The Jacksonville, Florida-based grocery-store chain forecast fiscal 2011 earnings before interest, taxes, depreciation and amortization of $100 million to $130 million, compared with $144.6 million in fiscal 2010.
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