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Sector Update: Financial

By: MT Newswires
Posted: 6/24/2014 12:59:00 PM
Referenced Stocks: HCI;BX

Financial stocks were little changed this afternoon with the NYSE Financial Sector Index down less than 0.1% and the S&P Financial 100 Index ahead less than 0.1%.

In company news, HCI Group ( HCI ) was moderately higher Tuesday afternoon, with shares of the property and casualty insurance carrier rising after late yesterday disclosing efforts to acquire Prepared Holdings, a rival insurance firm with around 21,500 policy-holders - all in Florida - for $27 million.

Under the non-binding letter of intent between the companies, the final purchase price HCI would pay would be subject to closing adjustments for notes payable and other incidental items on the Prepared Holdings books. A deal also would require approval of state regulators in Florida.

HCI also said it plans no material changes in Prepared Holdings' management or operations.

HCI shares were up just under 1% at $41.22 each in mid-day trade, earlier advancing to a session high of $41.88 a share. The stock has a 52-week range of $29.32 to $53.61 a share, rising slightly more than 46% over that 12-month span.

In other sector news,

(+) BRX, (+0.7%) Announces secondary offering of 25 mln shares of its common stock now held by the Blackstone Group ( BX ), which would see its overall BRX stake reduced by around 7.2% to 69% following the offering.

(-) SQBK, (-1.1%) Provides $5 mln credit facility to Vascular Pathways Inc, a privately held medical device company that's developed a wire-guided peripheral intravenous catheter.