(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stocks edged lower on Wednesday, with the Dow and S&P 500 both coming off their record closing highs, though losses were concentrated in small-cap names. The Dow Jones industrial average was down 0.35 percent at 16,656.13, and the S&P 500 was down 0.19 percent at 1,893.85.
** SEARS HOLDINGS CORP, $42.12, -2.57 pct
The department store operator said it was considering the sale of its 51 percent stake in Sears Canada Inc, a move that could mean all of the Canadian department store operator goes up for sale.
** PERNIX THERAPEUTICS HOLDINGS INC, $5.544, +29.53 pct
The pharmaceutical company said it would acquire the U.S. marketing rights to GlaxoSmithKline’s migraine drug Treximet for an upfront payment of $250 million.
Acquiring the rights to the drug, which had annual sales of $78.7 million in 2013, will nearly double Pernix’s revenue, the company said.
** SUMMER INFANT INC, $2.53, +52.41 pct
The juvenile health and wellness products maker posted a surprise profit for the first quarter on Tuesday as lower selling expenses boosted its gross margin.
Summer Infant also reported better-than-expected quarterly sales, helped by stronger demand from its retail partners, particularly in its nursery, monitor, gear and safety product categories.
Roth Capital Partners raised its rating on the company’s stock to “buy” from “neutral” on Wednesday.
** THE RUBICON PROJECT INC, $13.1, +15.22 pct
The provider of online advertising services reported a much smaller-than-expected loss for the first quarter, helped mainly by higher pricing and increased bidding activity.
Rubicon’s technology facilitates real-time trading of digital advertising between buyers and sellers.
RBC Capital and Oppenheimer & Co raised their rating on Rubicon’s stock to “outperform.”
** SERVISFIRST BANCSHARES Inc, $87, -4.40 pct
Shares of the lender dropped on debut after the company priced its initial public offering of 625,000 common shares at $91 per share, at the lower end of its expected price range, adding to the list of underperforming IPOs in recent weeks.
** JGWPT HOLDINGS INC, $11.24, -15.55 pct
The company, which provides liquidity to customers by buying settlement payments and annuity and lottery payments streams, said its quarterly profit fell more than 60 percent to $34.5 million due to lower gains on investments and higher interest expense.
** SUNOPTA INC, $12.57, +11.73 pct
The Canadian organic food company reported a better-than-expected revenue for the first quarter, driven by growth in its consumer packaged businesses, increased demand for organic raw materials in both Europe and North America, and its new value-added ingredient business.
** IDERA PHARMACEUTICALS, $2.7, -4.26 pct
The drug developer posted a bigger net loss for the first quarter, hurt by higher operating expenses.
** BIODEL INC, $2.21, -3.91 pct
The drugmaker posted a bigger-than-expected loss for the second quarter, hurt by higher research and development expenses for its experimental hypoglycemia device.
** IRON MOUNTAIN INC, $29.91, +7.86 pct
Changes being proposed by the Internal Revenue Service and Department of Treasury for real estate investment trust (REIT)conversion and eligibility increase the likelihood of the document storage company being granted REIT status, Piper Jaffray analysts wrote in a note.
Iron Mountain said in 2012 that it was planning to convert into a REIT.
** MILLENNIAL MEDIA INC, $3.86, +8.73 pct
Chief Executive Michael Barrett bought the company’s shares worth about $1 million. Millennial Media helps advertisers by buying space in apps to display targeted banner and video ads on smartphones and tablets.
** CALAMP CORP, $16.71, +3.15 pct
First Analysis Corp raised its rating on the wireless device maker’s stock to “overweight” from “equal weight,” according to Theflyonthewall.com.
** KATE SPADE & CO, $37.78, +9.03 pct
The upmarket fashion accessories retailer reported higher-than-expected sales for the first quarter, helped by a rise in demand for its leather and designer handbags. The company also reaffirmed its full-year core earnings forecast of $115 million to $125 million.
** EZCHIP SEMICONDUCTOR LTD, $26.2401, +9.84 pct
The Israel-based chipmaker reported a 33 percent rise in first-quarter revenue and said it expected its upcoming network processors to arrive sooner than the typical three-year gap between previous chip generations.
“This provides our routing customers with enough time to make their silicon choices into next year and still have ample time to migrate their software to the NPS (Network Processors for Smart networks) and be ready with next gen line cards in the 2016/17 time frame,” Chief Executive Eli Fruchter said.
** ARC GROUP WORLDWIDE INC, $13.72, +11.27 pct
The company, which makes precision components using molding technology, reported better-than-expected revenue for the third quarter, helped by strong demand from the medical, aerospace, automotive and defense industries.
** SONY CORP,, $16.42, -6.92 pct
The company said it would step up a broad restructuring this year to tackle bloated costs and exit some unprofitable businesses, hoping to put behind it years of persistent losses.
Sony said it would spend 135 billion yen ($1.32 billion) on restructuring in the year to March 31, adding to the 177.4 billion yen it spent in the previous year, as it sells off its loss-making Vaio PC and disc storage businesses.
It forecast those costs will push it into a 50 billion yen net loss for the 2014/15 financial year, its sixth loss in seven years. Combined, these losses amount to nearly 1 trillion yen.
** CELLDEX THERAPEUTICS INC, $15.6, +25.81 pct
The company said it entered into a collaboration with Bristol-Myers Squibb Co to develop two cancer therapies for an upfront payment of $5 million. The companies will share the development costs.
The drugs, Bristol’s nivolumab and Celldex’s varlilumab, are a new class of cancer treatments known as immunotherapies that harness the body’s immune system to fight cancer.
** DEERE & CO, $91.7, -2.04 pct
The farm equipment maker reported a stronger-than-expected quarterly profit on Wednesday, but trimmed its forecast for full-year sales of its green-and-yellow farm equipment, citing deteriorating conditions in the former Soviet Union.
** VIMPELCOM LTD, $7.88, -4.60 pct
Russia’s third-biggest mobile group said it expected sales and core profit to fall this year due to fierce price competition in Italy and efforts to defend its market share in Russia.
** VALMONT INDUSTRIES INC, $158.07, +5.09 pct
The supplier of engineered products and services said its board approved a $500 million share buyback program and raised its annual dividend to $1.50 per share from $1 per share.
** TRANSCEPT PHARMACEUTICALS INC, $3.07, +4.78 pct
The company declared a special cash dividend of $1.33 per common share. Payment will be made on June 3 to stockholders of record at the close of business on May 26.
** ENZYMOTEC LTD, $14.59, -27.88 pct
The maker of lipid-based products cut the lower end of its full-year profit forecast range, saying it expected a challenging second quarter.
“We believe these headwinds will mainly impact us in the second quarter and remain optimistic in our outlook for second half of the year due to improved supply/demand dynamics across our business segments,” Chief Executive Ariel Katz said in a statement.
** QIHOO 360 TECHNOLOGY CO LTD, $83.33, +3.72 pct
The China-based antivirus software maker and search engine provider said it would acquire a controlling interest in MediaV, an advertising platform for personal computers and mobile phones in China.
** ALLIED MOTION TECHNOLOGIES INC, $12.3, +6.96 pct
The maker of motors and electronic motion controls reported a higher profit for the first quarter, helped by a rise in sales in the United States and international markets.
** HARMONY GOLD MINING CO, $3.17, +3.93 pct
J.P.Morgan Cazenove raised its rating on the South African gold producer’s stock to “overweight” from “neutral,” with analysts predicting gold stocks will perform better this year as miners recover free cash flow.
** TAKE-TWO INTERACTIVE SOFTWARE INC, $19.4, -5.96 pct
At least two brokerages cut their price targets on the video game publisher’s stock, after it reported a fall in fourth-quarter profit and revenue on Tuesday.
The company forecast fiscal 2015 earnings in line with analysts’ estimates.
** PLUG POWER INC, $3.83, -6.36 pct
The fuel-cell maker reported a bigger-than-expected quarterly loss as it shipped fewer systems.
** ISIS PHARMACEUTICALS INC, $26.24, +4.58 pct
The drugmaker said its experimental type 2 diabetes drug reduced blood-sugar levels in patients in a mid-stage study.
** NQ MOBILE INC, $10.67, -4.48 pct
About two-thirds of the 345,000 bearish options held by investors on the Chinese mobile security software maker will expire by May 17, and the contracts will make money if the shares drop 46 percent from Tuesday's close, Bloomberg BusinessWeek reported. (r.reuters.com/jyr39v)
Stock borrowed for short selling amounts to 26 percent of shares outstanding, the highest among the most-traded Chinese companies listed in the United States, the report said.
** BG MEDICINE INC, $1.0583, -16.67 pct
The diagnostic test maker’s quarterly revenue fell 20 percent, partly hurt by a decline in orders due to a severe winter in the eastern parts of the United States, where most of its clinical laboratory customers are located.
** QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE INC, $3.6, -4.26 pct
The company, which makes compressed natural gas storage systems, reported a bigger-than-expected loss for the first quarter as sales of natgas engines fell from the fourth quarter.
** POINTER TELOCATION LTD, $8.58, +9.44 pct
The company, which provides automatic vehicle location equipment, reported a 22 percent rise in first-quarter revenue, helped by higher business at its services unit. The unit accounts for about two-thirds of the company’s total revenue.
** TEEKAY TANKERS, $3.35, -6.94 pct
Analysts at BofA Merrill cut their rating on the oil tanker company’s stock to “underperform”, according to Streetinsider.com.
** POLYPORE INTERNATIONAL INC, $43.22, +4.02 pct
William Blair & Co raised its rating on the company’s stock to “outperform” from “market perform,” according to Theflyonthewall.com. Polypore makes microporous membranes used in separation and filtration processes.
** GRAMERCY PROPERTY TRUST INC, $5.35, +2.69 pct
The real estate investment trust priced an upsized public offering of 40 million shares at $4.98 per share. The company had earlier said it would offer 34 million shares.
Gramercy was the most traded stock on the New York Stock Exchange as of 12:48 p.m. ET on Wednesday.
** DELEK US HOLDINGS INC, $31.15, -3.17 pct
The oil refiner said a stockholder would offer 9.2 million of its shares for sale. Delek said it would not sell any shares or receive any proceeds from the offering.
** LIQUIDITY SERVICES INC, $13.75, +4.17 pct
The online auctioneer said it was conducting an auction for PET bottle blowing, filling, and packaging equipment no longer needed by PepsiCo Inc in Europe.
** GASLOG LTD, $25.48, -1.24 pct
The liquefied natural gas carrier reported a lower-than-expected profit for the first quarter due to high operating expenses and a fall in short-term carrier rates.
Short-term carrier rates are expected to stay weak in the second quarter, as supply of vessels is increasing faster than liquefaction projects are coming online, the company said.
** TOWER GROUP INTERNATIONAL LTD, $2.29, -2.14 pct
The Bermuda-based insurer said in a filing with the U.S. regulators on Wednesday that it dismissed PricewaterhouseCoopers LLP as its auditor on May 9.
** HYDROGENICS CORP, $14.968, -23.59 pct
The fuel cell products maker said it would sell 1.5 million shares at $15 each. The offer price represents a 23 percent discount to the stock’s Tuesday close.
In the public offering, announced on Tuesday, Hydrogenics will sell shares from its treasury and from shareholder CommScope Inc. The offering is expected to raise net proceeds of about $13.7 million.
** MANNKIND CORP, $7.0983, +7.88 pct
Piper Jaffray raised its rating on the drugmaker’s stock to “neutral” from “underweight,” according to the Theflyonthewall.com.
** AKAMAI TECHNOLOGIES INC, $54.69, +2.61 pct
Pacific Crest Securities raised its rating on the content delivery services provider’s stock to “outperform” from “sector perform,” citing faster growth in media traffic.
“The two primary factors for the change in our opinion are: (1) the strong acceleration in media traffic...(2) strong 1H revenue performance despite lower pricing with the company’s largest customer, which makes us less concerned about pricing pressure hurting revenue growth,” analyst Chad Bartley wrote in a note.
Bartley said competition was also less of a concern now than it was three-four years ago as smaller rivals faded away and Akamai got aggressive with pricing.
** AROTECH CORP, $4.23, +26.27 pct
The company’s profit more than doubled in the first quarter as margins expanded. Arotech makes defense and security products for the military.
** FOSSIL GROUP INC, $101.75, -8.70 pct
The watches and fashion accessory retailer forecast a much lower-than-expected profit for the current quarter as costs rise.
** COTY INC, $15.78, +2.20 pct
The perfume and cosmetics maker reported a better-than-expected adjusted quarterly profit, helped by growth in its fragrance and skincare business, primarily in Europe and emerging markets.
** LOJACK CORP, $5.27, +19.23 pct
The company, which makes tracking systems to recover stolen vehicles, said an arbitration panel dismissed all claims filed against the company by Tracker do Brasil LTDA, the licensee of LoJack’s technology in Brazil. The panel allowed LoJack to terminate a supply agreement with Tracker, after the Brazilian company did not meet its minimum purchase requirements for vehicle location units, LoJack said.
** YUME INC, $6.17, -4.49 pct
The video advertising service provider forecast current-quarter revenue below analysts’ estimates and said its chief financial officer would step down by May 23.
The company, however, maintained its full-year revenue forecast. “While there is always the chance for fluctuation in quarter to quarter revenue results in advertising models, we view the company’s maintenance of CY14 guidance as a sign of confidence by YuMe in its relationship with advertisers over the longer term,” Piper Jaffray analysts wrote in a note.
Deutsche Bank and Piper Jaffray lowered their price targets on YuMe’s stock.
** URS CORP, $43.63, -7.54 pct
The engineering and construction services provider reported weaker-than-expected results for the first quarter as revenue declined from its infrastructure and environment and federal services.
** SPIRIT REALTY CAPITAL INC, $10.53, -1.86 pct
The real estate investment trust said it commenced concurrent underwritten public offerings of 23 million shares of its common stock and two series of convertible senior notes. ($1 = 0.73 euros) (Compiled by Vrinda Manocha in Bangalore; Editing by Kirti Pandey)