Shares of Courier Corporation (CRRC) are higher by 36% in midday trading on Friday, as the stock continues to see gains following news that Quad/Graphics (QUAD) will acquire Courier for $260 million, or $20.50 per share.
Under terms of the agreement, Quad/Graphics will acquire Courier including $25 million in net debt and capital leases as of December 31, 2014. Quad/Graphics said it expects the acquisition to close by mid-year, be accretive to earnings in 2016, and that the purchase price multiple will be less than 5x Adjusted EBITDA after taking into account anticipated synergies. Upon closing of the transaction, James F. Conway III will join Quad/Graphics as President of the Book Division.
CRRC shares recently gained $5.29 to $19.78. The stock is down more than 15% year-over-year and has lost roughly 2.88% year-to-date. In the past 52 weeks, shares of North Chelmsford, Massachusetts-based company have traded between a low of $11.23 and a high of $19.93.
Courier Corporation closed Thursday at $14.49. The name has a current market cap of $226.80M.
Kite Pharma, Inc. (KITE) shares are up 10% to $79.87 in mid-day trading. The move comes on a big volume too with the issue currently trading more than 2.3 million shares, compared to the average volume of 867,738 shares. Not seeing any news or rumors to account for the move.
Kite Pharma is a Sanata Moncia, Calif.-based clinical-stage biopharmaceutical company. Its stock has a median consensus analyst price target of $63, with a high target of $71.00, and a 52-week trading range of $21 to $89.21.
The stock is up 179% year-over-year, and has gained roughly 40.70% year-to-date.
Shares of Ocwen’s (OCN) subsidiary Altisource Portfolio Solutions (ASPS) are up 64% on the day. The move comes after the company’s management team said in a conference call that the chance of Ocwen Financial Corp. losing its California license is very low. Altisource also told investors it expects to earn between $4.40 and $7.95 a share in FY 2015.
Those comments come just days after reports that the state of California may soon suspend OCN’s mortgage license, suggesting the payment collection firm has failed to turn over documentation showing that it complies with California laws protecting homeowners.
On valuation measures, Altisource Portfolio Solutions, currently valued at $605.09M, has a median Wall Street price target of $50 with a high target of $77.50. Approximately 3.48M shares have already changed hands, compared to the stock’s average daily volume of 639.83K.
In the past 52 weeks, shares of Luxembourg-based firm have traded between a low of $16.00 and a high of $156.63 with the 50-day MA and 200-day MA located at $38.95 and $79.40 levels, respectively. Additionally, shares of ASPS have a Relative Strength Index (RSI) and MACD indicator of 43.71 and -6.81, respectively.
ASPS currently prints a one year loss of about 88%, and a year-to-date loss of around 45%.
DepoMed Inc. (DEPO) popped nearly 12% Friday, a day after it agreed to acquire the U.S. rights to the “Nucynta” franchise from the Johnson & Johnson (JNJ) Janssen Pharmaceuticals division.
Following the news, DepoMed was upgraded to ‘Buy’ from ‘Neutral’ at ROTH Capital with a price target of $25 per share. The equity research firm said they believe that the Nucynta agreement transforms DepoMed into a leading pain company now with critical mass. Separately, the name was also raised to $22 from $20 at RBC Capital Markets.
DepoMed is currently changing hands at $19.61, up $2.01. The stock is up a 63% YoY, and 22% year-to-date.
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