Market movers: Stocks seeing action on Monday – and why
A round-up of some of North American stocks moving in both directions today
Tesla Inc. (TSLA-Q) shares opened higher on Monday after the electric automaker reported better-than-expected vehicle deliveries in 2020.
According to Refinitiv, 499,550 vehicles were delivered, which was above Wall Street’s estimates of 481,261 vehicles, but lagging 450 units behind Chief Executive Officer Elon Musk’s 2020 target.
Tesla’s staggering stock surge made it the world’s largest automaker by market value as the electric automaker showed it could maintain profitability for five consecutive quarters.
This has helped overcome the coronavirus slowdown and defy the more general auto industry trends of the past year, namely declining sales, quarterly losses and global supply chain disruptions.
“We are increasing our forecasts to reflect higher shipments in the fourth quarter and reports of strong demand for the Model Y in China, which also indicates higher future shipments,” JP Morgan analysts said in a customer release.
However, the company is faced with the difficult task of ramping up production. The delivery spurt so far has been supported by the new plant in Shanghai, the only plant currently producing vehicles outside of California.
Brookfield Asset Management Inc. (BAM.AT) was higher after it announced Monday it would take its $ 5.9 billion commercial real estate arm Brookfield Property Partners LP (BPY.UN-T) private.
Brookfield Asset Management said it would offer $ 16.50 for every Brookfield Property share it doesn’t already own, a 14 percent premium through Thursday’s close of trading.
“The privatization will allow us to operate the portfolio more flexibly and realize the intrinsic value of BPY’s high quality assets,” said Nick Goodman, Brookfield Asset Management’s chief financial officer, in a statement.
The deal is subject to approval by the Brookfield Property Board.
Magna International Inc. (MG-T) announced on Monday that it is working with Fisker Inc. (FSR-N) to develop an Advanced Driver Assistance System (ADAS) for the electric car maker’s Ocean SUV, which is expected to hit the market by the end 2022.
In December last year, Fisker announced that Magna would initially be the exclusive manufacturer of its Ocean SUV in Europe and signed a contract with the auto supplier in October.
ADAS technology will use digital imaging radar technology in addition to cameras and ultrasonic sensors, Magna said.
The investment manager Fiera Capital Corp. (FSZ-T) admitted that it is selling two operations in the US in two separate transactions.
The Montreal-based company has agreed to sell Bel Air Investment Advisors, its high net worth private wealth platform, to Hightower Advisors.
In the second deal, Fiera completed the sale of Wilkinson Global Asset Management, its New York-based private wealth investment manager, to Wilkinson Global Capital Partners. The combined selling price for both transactions is approximately $ 81 million excluding transaction costs and is subject to a final working capital adjustment.
Health insurer Centene Corp. (CNC-N) rose after it announced it would buy $ 2.2 billion worth of Magellan Health Inc. (MGLN-Q) to expand its psychiatric services as more Americans battle COVID-19. related behavior and anxiety problems.
Centene has offered $ 95 per share in cash, a 14.7 percent premium over the pharmacy performance manager’s closing price on Thursday, the companies said in a statement on Monday.
Centene’s move to expand mental health support comes because more than two in five Americans are struggling with mental or behavioral health issues related to the pandemic, the company said.
The deal, which also includes debt, will add two million Pharmacy Benefit members and 16 million Medical Pharmacy members to Centene’s portfolio.
It would also bring Centene 18 million third-party customers of specialty health services, including physical medicine and rehabilitation for people with disabilities.
Ottawa-based Calian Group Ltd. (CGY-T) was on the up after announcing before the bell it would acquire Intertronic Solutions Inc. valued at $ 22 million.
In a research note, Acumen Capital analyst Jim Byrne said: “Intertronic is a perfect match for CGY’s existing ground satellite systems in the Advanced Technologies segment and will diversify its customer base, a pillar of CGY’s corporate strategy.”
With files from employees and wires