Trader’s Buzz: Herbalife (HLF), Array BioPharma (ARRY), Magnum Hunter Resources (MHR), Home Loan Servicing Solutions (HLSS)

Shares of Herbalife Ltd. (HLF) spiked nearly two points from $30.61 to $32.45 shortly before noon Friday, following a CNBC report that said investor Bill Stiritz, the company’s fourth-largest shareholder, has added to his 8.2% stake in Herbalife during the stock’s recent pullback  which has erased more than half the stock’s value over the past year. The report also said that Stiritz had not sold a share of his stake in the company.

HLF shares recently lost $0.18 to $31.15. In the past 52 weeks, shares of the Los Angeles nutritional products company have traded between a low of $27.60 and a high of $71.18. Shares are down 57.20% year-over-year, and 16.90% year-to-date.

Array BioPharma, Inc. (ARRY) is higher by 37% to $6.92 on heavy volume in midday trading on Fiday, after company announced that it has reached a definitive agreement with Novartis Pharma AG to acquire worldwide rights to encorafenib (LGX818), a BRAF inhibitor currently in Phase 3 development. Array said this agreement is conditional on the closing of transactions announced by Novartis and GlaxoSmithKline PLC (GSK) on April 22, 2014, which are expected to close in the first half of 2015.

“Acquiring worldwide rights to encorafenib, an innovative late-stage oncology product, represents a tremendous opportunity for Array,” said in a statement Ron Squarer, Array BioPharma’s Chief Executive Officer.

Shares of Magnum Hunter Resources Corp. (MHR) are higher by 20% to $1.98 in midday trading on Friday, after the company disclosed that it recently completed two new 100% owned Marcellus Shale wells. MHR is also advancing intraday following an uptick in Brent crude prices. Brent gained more than 1 percent to $49.02 this morning following market’s uncertainty over the future of Saudi oil production following King Abdullah’s death.

Magnum Hunter Resources Corp., currently valued at $384.22M, has a median Wall Street price target of $4.50 with a high target of $8.00. Approximately 16.37M shares have already changed hands, well ahead of its three month daily average of 6.58M.

In the past 52 weeks, shares of Houston, Texas-based independent oil and natural gas company have traded between a low of $1.60 and a high of $9.27 with the 50-day MA and 200-day MA located at $3.03 and $5.09 levels, respectively. Additionally, shares of MHR trade at a P/E ratio of -0.09 and have a Relative Strength Index (RSI) and MACD indicator of 30.66 and -0.60, respectively.

MHR currently prints a one year loss of about 81.10%, and a year-to-date loss of around 47.45%.

Home Loan Servicing Solutions, Ltd. (HLSS) plunged more than 11% to $13.70 in midday trading on Friday following a notice of default from BlueMountain Capital Management to Ocwen Financial (OCN) and HLSS. BlueMountain, which is short OCN, delivered the notice of on certain notes to trustee of the HLSS Servicer advance receivables trust.

In its notice BlueMountain Capital Management disclosed that it “hold[s] certain notes issued in connection with the HLSS Servicer Advance Receivables Trust, (ii) hold[s] certificates of certain residential mortgage-backed securities (the “RMBS Certificates”) collateralized by loans serviced by Ocwen Loan Servicing, LLC, (iii) hold[s] a short position in, and put options with respect to, the common stock of Ocwen Financial Corporation (“Ocwen”) and (iv) hold[s] a short position in, and put options with respect to, the common stock of Home Loan Servicing Solutions, Ltd. (“HLSS”). BlueMountain also has directed the trustees of certain of the RMBS Certificates to investigate and/or take action with respect to Ocwen Loan Servicing, LLC.”

Midway through trading Friday, OCN is trading down more than 18 percent to $6.23.

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