These stocks held onto their gains even as the market sagged throughout the session.
Friday was a sluggish end to a tough week for the stock market, as major indexes gave up early gains to finish modestly lower. Investors struggled to understand conflicting assessments of the economy from various Federal Reserve officials, and although most now expect the central bank to cut interest rates by the end of this month, there’s uncertainty about how big of a rate cut the Fed will deliver. Even amid uncertainty, some stocks enjoyed gains driven by merger and acquisition activity and earnings. Red Robin Gourmet Burgers (NASDAQ:RRGB), Gannett (NYSE:GCI), and Skechers USA (NYSE:SKX) were among the top performers. Here’s why they did so well.
Activists follow through on Red Robin buy offer
Shares of Red Robin Gourmet Burgers climbed 12% after the burger chain got a buyout bid from a major shareholder. Vintage Capital Management said it would pay $40 per share to buy out Red Robin in a deal that would value the company at $519 million. The move follows up on a letter to Red Robin from Vintage last month, in which the institutional investor expressed dissatisfaction with the stock’s recent performance and suggested a review of strategic alternatives. With the restaurant chain having failed to take steps to address those concerns, it’ll be interesting to see what the next moves are both for Red Robin and for Vintage.
Gannett looks at a potential buyout
Newspaper and media specialist Gannett saw its stock jump 19% following news that the company is talking with a possible acquirer. GateHouse Media, which publishes hundreds of newspapers and community publications in the U.S., could buy Gannett in a deal involving cash and stock, essentially combining the biggest remaining newspaper