NEW YORK (TheStreet) -- Hilltop Holdings Inc (HTH) was down 8% to $22.13 in aftermarket trading Tuesday.
The decline comes following the announcement of an investigation by law firm Block & Leviton LLP into the SWS Group (SWS) and Hilltop Holdings merger that was announced earlier in the day.
The law firm said that it was investigating potential breaches of fiduciary duty by SWS Group's board of directors in connection with the merger. Hilltop Holdings shares were up 1.1% during day trading following the news of the merger.
"Block & Leviton's investigation seeks to determine, among other things, whether SWS directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Hilltop, the fairness by which the SWS directors considered and approved the transaction, and specifically whether Hilltop dominated the process through its significant holdings in the company," the law firm said in a statement.
SWS Group closed the day up 5.6% to $7.90.
TheStreet Ratings team rates HILLTOP HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HILLTOP HOLDINGS INC (HTH) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, solid stock price performance, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."