Cerner Corporation (NASDAQ: CERN) stock soared after the company announced a cooperation agreement Tuesday with activist hedge fund Starboard Value LP. The health care information technology company appointed four Starboard-picked directors to its board. The Kansas City Company also an addition to its stock buyback program, authorizing the repurchase of roughly $1.5 billion of common stock.
The stock surged more than 10% to close at $62.97.
Boeing Co (NYSE:BA) stock declined after the company announced Tuesday that deliveries of its 737 planes fell in the first quarter. The airplane maker delivered 89 737 jets, down from 132 in the previous year. It’s unclear how many of the 737s are the MAX variety that experienced two deadly crashes, but Boeing suspended deliveries of the model in March and announced Friday that it would cut production to 42 from 52 737s per month.
Shares tumbled 1.4% to $369.18.
Novartis AG (NYSE:NVS) stock is bleeding after eyecare company Alcon was spun out from the Swiss healthcare giant. Alcon made its debut on the SIX Swiss Exchange Tuesday, Reuters reported, with a market cap of $28 billion good for the country’s biggest stock deal in a decade. Investors got one Alcon share for every five Novartis shares they owned, and the new company is faring better than its former parent.
Shares of Novartis fell more than 12% to $83.39.
US Steel Corporation (NYSE:X) dropped after Credit Suisse downgraded the stock to Underperform from Neutral and slashed its price target to $13 from $21. The firm said the steel maker’s “competitive position has weakened,” per CNBC. Earlier this month, the company was fined more than $700,000 by the Allegheny County Health Department for emissions at its plant near Pittsburgh.
The stock was fair from stainless, dropping more than 10% to $17.75.
Zogenix Zogenix Inc (NASDAQ:ZGNX) is reeling after the Food and Drug Administration late Thursday rejected the Emeryville, California company’s new drug application for Fintepla, a treatment for seizures associated with Dravet syndrome. In a refusal-to-file letter sent to the drugmaker, per a statement from the company, the FDA said that certain non-clinical studies were not included in the company’s application and that the application contained an incorrect version of a dataset.
The share price crumpled nearly 23% to $39.96.
Eastman Kodak Company (NYSE:KODK) slipped after the company completed the sale of its Flexographic Packaging Division to Montagu Private Equity LLP for roughly $320 million. The photography and imaging company plans to use the proceeds to reduce its outstanding term debts.
Shares lost ground after initial gains, shrinking 0.3% to $2.92.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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