A roundup of some of the North American equities making moves in both directions today
On the rise
Tesla Inc. (TSLA-Q) shares opened at a record high on Monday after the electric-car maker reported better-than-expected vehicle deliveries in 2020, extending a rally from last year that saw the stock surge more than eight times.
It delivered 499,550 vehicles, above Wall Street estimates of 481,261 vehicles, according to Refinitiv data, but 450 units short of Chief Executive Officer Elon Musk’s target for 2020.
Tesla’s dizzying stock rise made it the world’s biggest automaker by market value as the electric-car maker showed it could sustain its profitability with five straight quarters of gains.
That helped it ride out the coronavirus slowdown, defying last year’s wider auto industry trends of slumping sales, quarterly losses and global supply chain disruptions.
“We are raising our forecasts to reflect higher 4Q deliveries and reports of strong demand for the Model Y in China, which is also suggestive of higher future deliveries,” J.P. Morgan analysts said in a client note.
The company, however, faces an uphill task of ramping up production. Its delivery push so far has been supported by the new Shanghai factory, the only plant currently producing vehicles outside California.
Investment manager Fiera Capital Corp. (FSZ-T) jumped in the wake of saying it is selling a pair of operations in the United States in two separate deals.
The Montreal-based company says it has agreed to sell Bel Air Investment Advisors, its ultra high net worth private wealth platform, to Hightower Advisors.
In the second deal, Fiera says it has 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 about $81-million, excluding transaction costs, and is subject to a final working capital adjustment.
Health insurer Centene Corp. (CNC-N) rose after announcing it is buying Magellan Health Inc. (MGLN-Q) in a US$2.2-billion deal, looking to build up its mental health services as more Americans struggle with COVID-19-related behavioral and anxiety issues.
Centene has offered US$95 per share in cash, a 14.7-per-cent premium to the pharmacy benefits manager’s Thursday closing price, the companies said in a statement on Monday.
The move by Centene to expand mental health support comes as more than two out of five Americans are struggling with mental or behavioral health issues associated with 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 to Centene 18 million third-party customers of specialty health services, which includes physical medicine and rehabilitation to people with disabilities.
On the decline
Brookfield Asset Management Inc. (BAM.A-T) fell after it said on Monday it had offered to take its commercial real estate arm Brookfield Property Partners LP (BPY.UN-T) private in a US$5.9-billion deal.
Brookfield Asset Management said it would offer US$16.50 for each Brookfield Property shares it does not already own, a premium of 14 per cent to Thursday’s close.
“The privatization will allow us to have greater flexibility in operating the portfolio and realizing the intrinsic value of BPY’s high-quality assets,” Brookfield Asset Management Chief Financial Officer Nick Goodman said in a statement.
The deal is subject to Brookfield Property board’s approval.
Magna International Inc. (MG-T) slid in the wake of saying on Monday it would develop an Advanced Driver Assistance System (ADAS) with Fisker Inc. (FSR-N) for the electric-car maker’s Ocean SUV that is expected to launch in late 2022.
In December last year, Fisker had said Magna would initially be the exclusive manufacturer of its Ocean SUV in Europe, finalizing a deal signed with the auto supplier in October.
The ADAS technology will use digital imaging radar technology in addition to cameras and ultrasonic sensors, Magna said.
Ottawa-based Calian Group Ltd. (CGY-T) was lower after announcing the $22-million acquisition of Intertronic Solutions Inc. before the bell.
In a research note, Acumen Capital analyst Jim Byrne said: “Intertronic is a natural fit with CGY’s existing ground satellite systems within the Advanced Technologies segment and will diversify its customer base, a pillar of CGY’s corporate strategy.”
Workplace messaging app Slack Technologies Inc. (WORK-N) was down after it suffered a global outage on Monday, the first day back for most people returning from the New Year’s holiday.
It’s the latest tech glitch to show how disruptive technical difficulties can be when millions of people are depending on just a few services to work and go to school from home during the pandemic.
The company stopped releasing its daily user count after topping 12 million last year.
“Our team is currently investigating and we’re sorry for any troubles this may be causing,” Slack said in a prepared statement.
The outage began around 10 a.m. Eastern time and disrupted service in the U.S., Germany, India, the U.K., Japan and elsewhere. At 12:30 p.m., service was still sporadic and Slack said the outage was ongoing, but that some users may begin to see improvement. Most issues were resolved by 3 p.m. on Monday afternoon.
With files from staff and wires
David Leeder