High Volume Stock Movers April 26th: Chesapeake, Las Vegas, GE, PCS, Aetna
Chesapeake Energy Corporation (NYSE:CHK): Chesapeake Energy Corporation announced that its Board of Directors has determined that it does not intend to extend the company’s Founder Well Participation Program with its CEO, Aubrey McClendon, beyond its present 10-year term ending December 31, 2015. The Board of Directors and McClendon have committed to negotiate the early termination of the FWPP and the amendment to McClendon’s employment agreement necessary to effectuate the early termination. The FWPP, which was approved by shareholders for a 10-year term in 2005, in conjunction with McClendon’s employment agreement with the company, provides McClendon a contractual right to participate and invest as a working interest owner, with up to a 2.5% working interest, in new wells drilled on the company’s leasehold. Following consultation with the company’s Board of Directors, McClendon will separately disclose supplemental information regarding the interests he has acquired through the company’s Founder Well Participation Program as of December 31, 2011. The company also announced the Board of Directors is reviewing the financing arrangements between Mr. McClendon and the entities through which he participates in the FWPP and any third party that has had or may have a relationship with the company in any capacity.
Las Vegas Sands Corp. (NYSE:LVS): Galaxy Entertainment Group, the Macau casino operator, plans to invest $2.06B in the second phase of its latest resort there, as Asian casino firms take on Las Vegas gambling companies like Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN), reports Reuters.
General Electric Company (NYSE:GE): General Electric (NYSE:GE) shareholders came close to winning a vote that would have given them more direct control, against the wishes of its board, as a proposal to allow shareholders to make decisions about the company by written consent won the support of about 47.5% of the votes cast at the company’s annual meeting, reported Financial Times.
MetroPCS Communications Inc (NYSE:PCS): Company ended quarter with approximately 9.5M subscribers. It also surpassed 580,000 4G LTE subscribers.
Aetna Inc. (NYSE:AET): Aetna (NYSE:AET) reported Q1 EPS of $1.34, compared with analysts’ consensus estimate of $1.39. The company’s revenue came in higher than expected, however. Aetna said that its medical benefit ratio – the percentage of premiums that the company spends on members’ medical costs – increased to 81.5% in Q1, versus 79.2% during the same period in 2011. The health insurer reiterated its previous FY12 EPS guidance of $5.00, versus the consensus estimate of $5.15. Aetna reported that it had 17.9M members at the end of Q1, and it expects its membership total to increase by 300,000 to 18.2M at the end of the year. The insurer, which reiterated that its medical costs are expected to increase 6%-7% in 2012, indicated that medical cost increases appear to be bottoming and could increase by 6.5% in 2012. In a note to investors, Citigroup reported that this is the first time since 2009 that Aetna hasn’t raised its guidance. The firm notes that the other health insurers which reported Q1 results have delivered beat and raise quarters, making Aetna’s results look disappointing. Aetna appears to believe that its costs are increasing, added the firm, which nevertheless maintained a Buy rating on the stock.
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