Abraxas, Exfo, KB Home, Omnova, SM Energy: 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.
Abraxas Petroleum Corp. (AXAS) jumped 15 percent to $3.57 for the biggest gain in the Russell 2000 Index. The San Antonio-based oil and natural-gas producer said it has offset production disruptions from flooding in the Williston Basin with recent production in the Bakken or Three Forks formation and expected performance of the Portilla and Twining wells.
Bank of America Corp. (BAC) jumped 3 percent, the biggest gain in the Dow Jones Industrial Average, to $11.14. The biggest U.S. bank by assets agreed to settle claims over soured mortgages for $8.5 billion after a group of bondholders including BlackRock Inc. (BLK) demanded refunds.
BJ’s Wholesale Club Inc. (BJ) gained 4.6 percent, the most since April 27, to $50.29. The warehouse-club operator said it has entered into a definitive agreement to be acquired by affiliates of Leonard Green & Partners LP and funds advised by CVC Capital Partners in an all-cash transaction of $51.25 a share, or about $2.8 billion.
Cree Inc. (CREE) declined 4.6 percent to $32.54, the biggest drop in the Russell 1000 Index. Morgan Stanley lowered the price estimate of the maker of energy-efficient lighting to $28 from $35, citing a need for Cree to cut prices or risk losing market share.
Exfo Inc. (EXFO) dropped 17 percent, the most since April 1, to $7.44. The Quebec City, Canada-based maker of equipment for the telecommunications industry forecast fourth- quarter profit and sales below the estimates of analysts in a Bloomberg survey.
JDS Uniphase Corp. (JDSU) declined 3.6 percent, the second-biggest decrease in the Standard & Poor’s 500 Index, to $16.17. Analysts Alkesh Shah of Evercore Partners Inc. and Alex Henderson of Miller Tabak & Co. said that Exfo provides test and measurement services that make up about half of JDS’s business. “The Exfo miss raises the risk of softer conditions,” Henderson said in an e-mail.
Greenbrier Companies Inc. (GBX US) declined 6.5 percent, the most since Dec. 14, to $19.03. Jefferies and Co. cut the railcar producer to “hold” from “buy” and lowered the price estimate to $22 from $32, citing valuation.
KB Home (KBH) declined 15 percent, the most since September 2008, to $10.08. The Los Angeles-based homebuilder that targets first-time buyers reported a wider second-quarter loss as new orders and revenue decreased amid weak demand for new houses.
PulteGroup Inc. (PHM US) fell 3.9 percent to $7.58. D.R. Horton Inc. (DHI US) fell 3.2 percent to $11.37.
Lindsay Corp. (LNN) jumped 5.1 percent to $68.99, the highest price since May 2. The maker of GrowSmart irrigation equipment reported third quarter earnings of $1.20 per share, beating the average analyst estimate of 97 cents.
McMoRan Exploration Co. (MMR) climbed 13 percent to $18.66, the second-biggest gain in the Russell 2000 Index. The New Orleans-based oil producer reported it found 192 net feet (46 meters) of potential hydrocarbons while drilling in its Davy Jones prospect, among the biggest shallow-water Gulf of Mexico discoveries in decades.
Monsanto Co. (MON) jumped 5 percent, the most since Nov. 4, to $70.26. The world’s largest seed company raised its full- year profit forecast and posted third-quarter earnings that topped analysts’ estimates on higher sales of Roundup weed killer and genetically modified seeds.
Morgan Stanley (MS) gained 4.8 percent, the most since July 21, to $23.39. Lehman Brothers Holdings Inc. reached an agreement on a $65 billion liquidation plan with derivatives creditors including Morgan Stanley and bondholders led by hedge fund Paulson & Co., ending a dispute that threatened to delay its exit from bankruptcy.
Omnova Solutions Inc. (OMN) sank 16 percent to $6.84 for the biggest retreat in the Russell 2000 Index. The polymer maker forecast 2011 full-year earnings per share from continuing operations of 60 cents per share, compared with the 72 cent average analyst estimate, citing “worse than expected” raw- material cost increases.
Shaw Group Inc. (SHAW) dropped 7.7 percent to $29.83, the biggest decline in the Russell 1000 Index. The Baton Rouge, Louisiana-based builder of power plants forecast 2012 sales of $6.2 billion to $6.5 billion, below the $7.22 billion average of analysts tracked by Bloomberg.
SM Energy Co. (SM) rose 8.6 percent to $72.44, the highest price since May 2. The Denver-based oil and natural-gas exploration and production company agreed to sell a 12.5 percent working interest in its Eagle Ford shale position to a Mitsui & Co. Ltd. subsidiary in exchange for $680 million in drilling costs.
United States Steel Corp. (X) rose 5.9 percent, the most since July 20, to $45.85, while AK Steel Holding Corp. (AKS) gained 5.2 percent to $15.51. The steelmakers were raised to “buy” from “hold” by David Martin, an analyst at Deutsche Bank AG, based on valuation and a belief that steel prices are nearing a floor.
Visa Inc. (V) rose 15 percent to $86.57, while MasterCard Inc. (MA) gained 11 percent to $309.70 for the biggest gains in the S&P 500. The world’s largest consumer- payment networks surged after the Federal Reserve relaxed restrictions on debit-card transaction fees.
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