Dominion Diamond Corp (NYSE:DDC) shares are soaring in morning trading, after the company has issued a release saying that they will address issues with the K2 Principal Fund via open dialogue. This is in response to a Schedule 13D filing that was made.
A representative from K2 contacted Daniel Jarvis, the Lead Director, informing him that they believe that the share price of Dominion Diamond Corp (NYSE:DDC) has taken a hit due to misguided policies and missed opportunities. They went on to say that they wish to work with the board of directors.
The fact that Dominion Diamond Corp (NYSE:DDC) is willing and able to work with K2 has signified a potential benefit for shareholders of the company, and the stock price today is reflecting this.
The stock is up 22.02% or $1.81 following the news, hitting $10.03 per share. About 620,146 shares traded hands or up 6.14% from the average. DDC has declined 57.50% since May 19, 2015 and is currently downtrending. It has underperformed the S&P500 by 55.23%.
From a total of 3 analysts covering Dominion Diamond Corp (NYSE:DDC) stock, 2 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $18.50 while the lowest target price is $14. The mean of all analyst targets is $15.91 which is 58.62% above today’s ($10.03) stock price. Dominion Diamond Corp was the topic of 7 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. Citigroup maintained shares on October 19 with a “Buy” rating.
Dominion Diamond Corporation is focused on the mining and marketing of rough diamonds to the global market. The company has a market cap of $743.24 million. The Firm has ownership interests in the Diavik and the Ekati group of mineral claims. It currently has negative earnings. The Diavik Joint Venture is an unincorporated joint arrangement between Diavik Diamond Mines Inc. (DDMI) and Dominion Diamond Diavik Limited Partnership (DDDLP) where DDDLP holds an undivided 40% ownership interest in the assets, liabilities and expenses of the Diavik Diamond Mine.