Morning Buzz: Intercept Pharma (ICPT), Cabela’s Inc (CAB), Apple (AAPL), Twitter (TWTR)

Wall Street

Intercept Pharmaceuticals‘ (ICPT) fell more than 15% in premarket trade Wednesday, after the company announced results of a 72-week Phase 2 trial of obeticholic acid, its treatment for adults in Japan with liver inflammation (or, nonalcoholic steatohepatitis). The company said the treatment reached the desired results for some patients, but not so much for others.

Elliott Associates, L.P. this morning disclosed an 11% activist stake in Cabela’s Incorporated (CAB). Elliot’s 13D filing with the SEC also indicates the firm’s plans to engage in a dialogue with the retailer’s Board of Directors on various alternatives, including a potential sale.

From 13D filing:

“The Reporting Persons purchased the securities of the Issuer reported herein based on their belief that such securities are significantly undervalued by the public market and represent an attractive investment opportunity. The Reporting Persons believe that, in light of the robust environment for private equity investment in retail companies, potential strategic interest in the Issuer, and the Issuer’s substantial asset holdings, there exist multiple pathways for the Issuer to unlock significant unrealized value. The Reporting Persons seek to engage in a constructive dialogue with the Issuer’s Board of Directors regarding opportunities to maximize shareholder value through various strategic alternatives including, but not limited to: strategic transactions including a sale of the Issuer, asset monetization, capital allocation and capital structure optimization, and operational and management initiatives.”

In pre-market hours trade on Wednesday, Cabela’ s shares were up 10.98%.

Apple Inc. (AAPL) shares gained 1.95% to $116.78 in the pre-market trading session after the company reported a better-than-expected fiscal fourth-quarter profit.  EPS came in at $1.96, compared to the consensus estimate of $1.87. Revenues increased 22.3% from last year to $51.50 billion. Analysts expected revenues of $50.96 billion. The company sold 48.04 million iPhones during the quarter.

The stock is currently up $2.20 to $116.75 on 1.26 million shares.

Twitter (TWTR) shares slumped more than 11% in premarket trading after releasing lower-than-expected guidance for the 2015 fourth quarter. The social networking site issued revenue projection of $695 – $710 million, compared to analysts’ expectations of $741.70 million. Twitter reported solid Q3 earnings results, reporting EPS of $0.10 on revenue of $569 million. Analysts had been modeling $562.17 million and $0.05 per share.

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