Healthways, Qualcomm, McCormick, Xyratex: U.S. Equity Movers
Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are of 4 p.m. in New York.
Staffing companies advanced after a government report showed applications for U.S. unemployment benefits decreased last week. Robert Half International Inc. (RHI US) rose 2.4 percent to $26. Monster Worldwide Inc. (MWW US) climbed 1.3 percent to $12.96. Manpower Inc. (MAN US) added 5.8 percent to $52.20.
American International Group Inc. (AIG US) rose 4.4 percent to $39.10 for the second-biggest advance in the S&P 500 Index. The insurer, which was once the world’s largest, agreed with U.S. regulators to repay its bailout by converting the government’s holdings into common shares for sale, a step toward independence. Treasury will convert a preferred stake of about $49.1 billion for 1.66 billion shares of common stock. Common shareholders, who hold about 20 percent of the company, will have their stake diluted to about 7.9 percent.
Separately, the company agreed to sell two Japan units to Prudential Financial Inc. (PRU US), the second-largest U.S. life insurer, for $4.8 billion. Prudential, which plans to issue $1.3 billion in equity to help fund the purchase, fell the most in the S&P 500, sliding 4.2 percent to $54.18.
A-Power Energy Generation Systems Ltd. (APWR US) gained 9.5 percent to $8.30, the highest intraday price since Aug. 9. The Chinese power system manufacturer said it signed a six-year, $279 million contract with Baishan Long Run Water Conservancy.
Canadian Solar Inc. (CSIQ US) increased 13 percent, the most since August 2009 to $16.30. The maker of solar power cells and modules was boosted to “buy” from “hold” at Jefferies Group inc.
Clearwire Corp. (CLWR US) climbed 2 percent to $8.09, the highest price since June 3. The U.S. wireless network operator said three executives of majority owner Sprint Nextel Corp. stepped down from its board to address potential violations of antitrust law.
Comverse Technology Inc. (CMVT US) surged 15 percent, the most since March 2003, to $6.73. Oracle Corp. (ORCL US) and buyout firms are interested in buying the voice-mail software maker’s assets, the Wall Street Journal reported, citing people familiar with the matter. Buyout firms may be more interested in purchasing Verint Systems Inc. (VRNT US), the report said. Verint, a maker of software that helps businesses analyze performance, jumped 15 percent to $29.55. Comverse owned 54 percent of Verint as of July 15, according to Bloomberg Data.
Covance Inc. (CVD US) advanced 11 percent, the most since November 2008, to $46.79. The contract researcher signed a 10- year, $2.2 billion agreement with Sanofi-Aventis SA (SAN FP), France’s biggest pharmaceutical company.
DG Fastchannel Inc. (DGIT US) gained 8.6 percent, the most since May 5, to $21.75. The operator of an electronic network linking advertising agencies with television and radio stations said it will acquire privately-held Match Point Media LLC for $26 million in cash.
Healthways Inc. (HWAY US) fell 3.6 percent to $11.64, the lowest price since May 2009. The provider of disease-management services was cut to “reduce” from “neutral” at Madison Williams & Co.
Hertz Global Holdings Inc. (HTZ US) fell the most in the Russell 1000 Index, dropping 8.7 percent to $10.59. Dollar Thrifty Automotive Group Inc.’s (DTG US) shareholders rejected the car rental company’s $1.46 billion takeover offer a day after Avis Budget Group Inc. (CAR US) added a breakup fee to its higher bid.
Hypercom Corp. (HYC US) surged 54 percent to $6.50 for the biggest advance in the Russell 2000 Index. The maker of electronic-payment software said it received and unanimously rejected an unsolicited bid from VeriFone Systems Inc. (PAY US) to acquire the company for $5.25 a share in cash.
Limelight Networks Inc. (LLNW US) rose 6.5 percent to $5.89 the highest price since February 2008. The maker of software that speeds delivery and prevents online problems with Web videos may be poised to rise, Jim Cramer said on his “Mad Money” program on CNBC.
Manitowoc Co. (MTW US) had the second biggest gain in the Russell 1000 Index, rising 14 percent to $12.11. The world’s biggest manufacturer of overhead cranes said it plans to refinance a portion of its term loans under its senior secured credit facility with senior unsecured notes. The offering should “materially reduce” concern over potential equity distress, Morgan Stanley said.
McCormick & Co. (MKC US) gained 2.3 percent to $42.04, the highest price since at least 1980. The world’s biggest spice seller said it said it would earn at least $2.57 a share excluding some items this year, beating the average estimate of $2.54 by analysts in a Bloomberg survey.
Qualcomm Inc. (QCOM US) climbed 1.9 percent to $45.13, the highest price since Jan. 27. Apple Inc. ordered Qualcomm’s baseband chips for the next versions of the iPhone and iPad, replacing Infineon Technologies AG (IFX GY), the Economic Daily News said, without saying where it got the information.
Cirrus Logic Inc. (CRUS US) fell 6.2 percent to $17.84, while JDS Uniphase Corp. (JDSU US) slipped 3.4 percent to $12.39.
Santarus Inc. (SNTS US) climbed 7.5 percent to $3.01, the highest price since May 19. The maker of the acid-reflux treatment Zegerid and its partner Cosmo Pharmaceuticals S.p.A said top-line results from a Phase III clinical study on Budesonide MMX in treating ulcerative colitis were “positive.”
Synnex Corp. (SNX US) rose 8.7 percent, the most since July 2009, to $28.14. The distributor of computer products said fourth-quarter profit will be as much as 97 cents a share, beating the average analyst estimate of 90 cents.
Xyratex Ltd. (XRTX US) fell the most in the Russell 2000 Index, sinking 14 percent to $14.84. The provider of data storage and network technology said fourth-quarter adjusted earnings may be as little as 60 cents a share. The average estimate of analysts is 86 cents a share.
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