June 19, 2015 / 3:05 PM / 3 years ago

BUZZ-U.S. STOCKS ON THE MOVE-Twitter, IntelliPharmaCeutics, KB Home

(For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for the Day Ahead newsletter, link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stocks turned lower after a mixed opening on Friday, a day after Wall Street rallied and the Nasdaq Composite index broke its last standing milestone from the dot-com era as it set a record intraday high. The Dow Jones industrial average was down 0.13 percent at 18,092.95 and the S&P 500 was down 0.11 percent at 2,118.98.

** CONAGRA FOODS INC, $42.65, +9.02 pct

Activist hedge fund Jana Partners LLC took up a 7.2 percent stake; became ConAgra’s second-largest shareholder. Jana said it is prepared to nominate directors to help address “persistent underperformance” since ConAgra bought RalCorp in 2013. “(Jana) could accelerate the anticipated change that investors are expecting following the appointment of a new CEO,” Bernstein analyst Alexia Howard wrote in a note on Friday, raising price target to $44 from $37.

** TWITTER INC, $36.1, +4.15 pct

Dick Costolo’s decision to step down as Twitter chief executive last week failed to stem the weeks-long slide in the company’s shares, but options traders appear to be betting on a near-term rebound.


The drugmaker said a mid-stage study hit statistical endpoint that indicated continuing enrollment not likely to demonstrate an overall therapeutic benefit. The company said data analysis is ongoing and the full results will be made available as soon as possible. Early data on the drug, TKM-Ebola-Guinea, showed it cured all three monkeys intentionally infected with the deadly virus.

** AIRMEDIA GROUP INC, $5.16, +46.59 pct

The digital advertising service provider received a buyout offer for $6 per ADS from a group led by CEO Herman Man Guo. The offer is at a hefty 70.5 percent premium to the stock’s Thursday close and values the company at $359.8 million based on outstanding shares as of March 31.


The FDA indicated that IntelliPharmaCeutics’ generic Attention Deficit Hyperactivity Disorder treatment will have to meet new conditions to prove it is as effective as existing therapy, the company said.

** KB HOME, $16.13, +7.82 pct

The U.S. homebuilder reports better-than-expected first quarter revenue and profit as it sold more homes at higher prices. Net orders, an indicator of future revenue for homebuilders, rose 33 percent to 3,015.

** MACERICH CO, $77.49, -6.02 pct

The No.3 U.S. mall owner’s shares fall after Simon Property Group Inc exited its ownership stake in block trade, sources tell Reuters. In March, Macerich rejected larger rival Simon’s $14.4 billion unsolicited buyout offer and adopted a poison pill with a 10 percent trigger.

** INTEGRATED SILICON SOLUTION INC, Thursday close $21.46, +4.00 pct premarket

Integrated Silicon said on Friday that Chinese consortium Uphill Investment Co raised its offer to buy the chipmaker by $1 per share to $22.

** CARMAX INC, Thursday close $71.96, -2.65 pct premarket

The largest U.S. used-car seller reported lower-than-expected first-quarter revenue as average selling prices of used vehicles fell for the first time in five quarters on a year-on-year basis. Sales to subprime customers fell to 14.5 percent from 16.1 percent; CarMax gets about a fifth of its business from customers with weak credit profiles.

** SMITH & WESSON HOLDING CORP, $15.69, -2.55 pct

The gun maker forecasts first-quarter profit, 2016 sales and profit below analysts’ estimates, even as fourth-quarter results outperform. Sales in the firearm division fell 2.4 percent in the fourth quarter. “Conservative” and “easily achievable” full-year guidance mostly impacted by early debt extinguishment in the first quarter, Wunderlich Securities analysts write.

** HERSHEY CO, $89.9, -2.56 pct

The chocolate maker cut full-year sales growth and adjusted earnings forecast, citing weak sales in China. The company said it was reassessing value of China-based Shanghai Golden Monkey Food Joint Stock Co, which it agreed to buy for $584 million in 2014. Hershey will also cut 300 jobs by year-end. (Compiled by Yashaswini Swamynathan in Bengaluru; Edited by Maju Samuel)

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