Stocks making the biggest moves at noon: De Grey, Gold Road, Select Harvests and more

These are the companies and sectors making headlines in afternoon trade.

De Grey Mining (ASX: DEG) – Shares in the WA-based gold developer soared 27.8% after the company entered into a binding Scheme Implementation Deed with Northern Star. The all-scrip takeover bid values De Grey at $2.08 per share or a 37.1% premium to its last close.

Earlypay (ASX: EPY) – Shares in the buy now, pay later continue to rally after providing an FY25 earnings outlook last week. The stock is up 15% on Monday and up almost 40% in the past three sessions. Last week, the company guided to FY25 EPS of 2.2 cents per share, up 28% on the prior corresponding period. The stock trades around the 20 cent level – so this implies a price-to-earnings of around 10.

The company also said “given the strong ongoing financial performance and Board confidence in the business, Earlypay are targeting to return to a dividend payout ratio of at least 60%.” If we assume FY25 EPS of 2.2 cents per share and a 60% payout ratio – that’s a dividend of 1.3 cents per share or a yield of approximately 6%.

Gold Road Resources (ASX: GOR) – The company is a major De Grey Mining shareholder, owning approximately 17.85% of the company as at 19 August 2024. The takeover news has sent GOR shares 12.6% higher.

Retail stocks are rallying off of positive Black Friday sales data. Top gainers include Myer (+10.4%), Cettire (+3.7%), Beacon Lighting (+3.1%) and Accent Group (+3.0%)

Select Harvests (ASX: SHV) – Shares up 9.6% after the stock was upgraded by several brokers including UBS, Wilsons and Ord Minnett. The company reported its FY24 earnings last week, which triggered a 5.4% selloff due to weak returns on capital and the absence of a final dividend.

Star Entertainment Group (ASX: SGR) – Shares in the beleaguered casino operate rallied 7.7% after incoming CEO and Managing Director Steve McCann received all necessary regulatory approvals to commence his new role.

Stocks rallying on no market-sensitive news include Calix (+6.1%), Webjet Group (+5.3%), Develop Global (+4.8%), Chalice Mining (+4.8%), Mineral Resources (+3.9%) and oOh!Media (+3.2%).

GQG Partners (ASX: GQG) – Shares in the global fund manager tumbled 11.9% after UBS downgraded the stock to Buy from Neutral. The stock's target price was slashed to $2.30 from $3.30.

Northern Star Resources (ASX: NST) – Shares dipped 5.9% after the company announced its plans to acquire De Grey Mining. Here are the key terms of the transaction:

• De Grey shareholders to receive 0.119 Northern Star shares for each De Grey share held, this implies an offer price of $2.08 per share

• The transaction values De Grey at approximately $5.0 billion on a fully diluted basis

• Upon implementation of the transaction, Northern Star shareholders will own 80.1% of the combined entity and De Grey shareholders will own the remaining 19.9%

• The Transaction is unanimously approved by the board of Northern Star and the board of De Grey

• Northern Star expects the transaction to be value accretive and free cash flow accretive on first production

• The transaction remains subject to De Grey shareholder approval

Stocks falling on no market-sensitive news include Vulcan Energy (-6.6%), Catapult Group (-5.7%), Nuix (-5.3%) and Weebit Nano (-3.3%).