Tuesday's Financial Winners & Losers
A big buyout and a couple of analyst upgrades helped buoy financial stocks Tuesday.
Archstone-Smith Trust (ASN) soared 10% after the real estate investment trust agreed to be acquired by Tishman Speyer and Lehman Brothers. The company, which is one of the country's largest apartment owners, agreed to be sold for $22.2 billion, or $60.75 a share. Shares jumped $5.76 to $60.99 in recent trading.
Analyst action also moved financial stocks Tuesday. MasterCard (MA) climbed 3.1% after Bear Stearns initiated coverage of the stock with an outperform rating. Shares of the credit service company were up $4.63 at $143.70.
Shares of insurer Unum Group (UNM) were hit by a downgrade to underweight from equal weight courtesy of Morgan Stanley. The stock was down 49 cents, or 1.9%, at $26.The Nasdaq Financial 100 Index was up almost 11 points to about 3,212. The Financial Select Sector Index, which includes component Archstone-Smith, was recently up less than a point to about 374. Two of the biggest financial movers on the winning side were Calamos Asset Management (CLMS) and United Security Bancshares (symbol). Calamos, which manages $44.5 billion in investments, saw shares increase $2.26, or 9.8%, to $25.45. United Security, which operates 11 commercial banks in California, was up $1.37, or 7.2%, to $20.51. Coast Financial Holdings (CFHI) dropped 10% after the Federal Deposit Insurance Corp. on Friday ordered the Florida bank to take certain actions related to its residential construction loan program. One step was to fire President and Chief Executive Brian F. Grimes. Shares were down 34 cents to $2.49. Delta Financial (DFC) shares increased 7.2% after issuing $850 million worth of mortgage securities and saying it may do so more often going forward. "While we are still cautious about the securitization market on a go forward basis, we saw a marked improvement in both pricing and investor demand for this transaction, compared to the securitization we completed in the first quarter of this year," President and CEO Hugh Miller said in a company statement. Shares increased 85 cents to $13.40.
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