Here's Why Peabody Energy Stock Surged 31% Wednesday and Is Down 9% Today
Shares of coal miner Peabody Energy (NYSE: BTU) were on fire on Wednesday, gaining more than 31% at one point before closing with a strong 26% gain. However, today the market has reversed course, with shares down more than 9% in early afternoon trading.
Wednesday's surge came on the heels of two announcements. The first was the company's first-quarter financial and operating results, which are usually the catalysts when a stock moves this much on a single day.
In Peabody's case, however, it was the second announcement that seems to be providing the majority of investors' optimism: The company reached an agreement with Elliott Management, a fund manager with more than $40 billion in assets under management that is by far Peabody's biggest shareholder.
Source Fool.com
