June 19, 2015 / 6:13 PM / 3 years ago

BUZZ-U.S. STOCKS ON THE MOVE-Fogo De Chao, Healthways, Celyad

(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 were down in early afternoon trading on Friday, a day after a strong rally pushed the Nasdaq Composite index to a record high, but the major indexes were still on track for their strongest weekly performance in about two months. The Dow Jones industrial average was down 0.31 percent at 18,060.16 and the S&P 500 was down 0.26 percent at 2,115.66.

** AIRMEDIA GROUP INC, $5.05, +43.47 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.

** FOGO DE CHAO INC, $25.7599, +28.80 pct

The Brazilian steak house chain’s stock rose as much as 33 percent in its debut, valuing the company at about $723.3 million. The company’s offering of 4.4 million shares raised $88.2 million after they were priced at $20 per share, above the expected price range of $16-$18.

** HEALTHWAYS INC, $12.38, -20.28 pct

The healthcare management company cut its 2015 revenue forecast, hurt by lower revenue from a single health plan contract. Piper Jaffray cut its price target to $25 from $27; Dougherty & Co slashes to $15 from $25, citing challenges in several parts of the business and the need for strong leadership.

** LIVEDEAL INC, $2.98, +16.86 pct

The internet marketing company sees fiscal year 2015 to be “record year ... as a result of its strategic acquisitions and significant increase in sales”. Due to “continued growth” of unit ModernEveryday and expansion into online sales of consumer products, sees “significant increase in sales revenues by year’s end”

** CONAGRA FOODS INC, $42.95, +9.79 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. Options flow bullish with July calls at $43 strike busiest with nearly 5,000 contracts traded; similarly bullish flow seen earlier in the week too

** TWITTER INC, $36.07, +4.07 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.


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, $16.49, +10.23 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, $77.16, -6.42 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 said on Friday that Chinese consortium Uphill Investment Co raised its offer to buy the chipmaker by $1 per share to $22.

** ZOE’S KITCHEN INC, $39.49, -6.09 pct

The fast-casual restaurant operator’s shares fall after Chief Financial Officer Jason Morgan unexpectedly resigned on Thursday. Company said the departure was not related to any disagreement with board of directors, audit committee or auditors. Piper Jaffray cut rating to “neutral” from “overweight,” saying stock appears fairly valued at current levels after rising about 30 percent since start of June.

** WEST CORP, $30.25, -5.62 pct

The telecom software provider’s backers cut respective stakes via an underwritten block sale. The company said top holder Thomas H. Lee Partners and fourth largest shareholder Quadrangle Group LLC sold 7 million shares. In addition, West Corp will concurrently repurchase 1 million shares privately from private equity firms at same price shares sold to underwriter Morgan Stanley.

** AMBARELLA INC, $118.406, -6.55 pct

The video-processing chip maker's shares fall after short-seller Citron Research published a note on "ridiculousness of Ambarella", set price target of $60, valuing the company at $1.88 billion, about half of its market cap of $3.97 billion as of Thursday. Bearish activity in Ambarella options; puts volume 29,000 contracts, or 4 times normal, according to Trade Alert. Puts-to-calls trading ratio at 1.8-to-1, highest since September. (bit.ly/1QGEuNI)

** ERICKSON INC, $4.59, +12.50 pct

Imperial Capital raises the aviation service provider’s stock to “outperform” from “in-line”, citing a new management in place and upcoming seasonally stronger third quarter trends. Analysts say going concern risk has been minimized.

** NN INC, $26.8999, -9.91 pct

The metal bearing components maker lowered 2015 revenue forecast to $660-$670 million from $670-$690 million due to continued weakness in Brazil.

** CELYAD SA, $56, -18.32 pct

The Belgian drug developer’s shares fall 13 percent in their U.S. debut; the company’s Brussels-listed stock closed down 15 percent. The company raised $100 million through offering of 1.2 million American depositary shares priced at $68.56 each, and private placement of 292,000 ordinary shares at 60.25 euros each.

** HERSHEY CO, $88.98, -3.56 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.

** MINDBODY INC, $13.15, -6.07 pct

The fitness software firm’s shares fall in their debut. The IPO was priced at $14. The stock opened at $16.22 and immediately hit session high before reversing course to consistently trade below the IPO price. (Compiled by Yashaswini Swamynathan in Bengaluru; Edited by Maju Samuel)

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