Market movers: Stocks seeing action on Friday - and why

Laurentian Bank of Canada stock open down almost 10 per cent after announcing a 40-per-cent cut to its quarterly dividend to 40 cents per share. It also announced weaker than expected quarterly results

The bank said the dividend cut was “to provide greater financial strength and flexibility to support continued growth, the pursuit of the bank’s strategic plan, and the alignment of the bank’s payout ratio with the bank’s policy.”

It reported net income of $8.9-million or 13 cents per share for the second quarter, compared with $43.3-million or 95 cents for the second quarter of 2019. Analysts were expecting earnings of 23 cents in the latest quarter, according to S&P Capital IQ.

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Canopy Growth Corp.’s was down 18 per cent at the open after the company reported a bigger loss for the fourth quarter, hit by non-cash impairment and restructuring-related charges of $743-million. Ontario-based Canopy Growth’s net loss attributable to the company widened to $1.30-billion, or $3.72 per share, in the quarter ended March 31, from $379.5-million, or $1.10 per share, a year ago.

Many other cannabis stocks on the TSX are moving down in sympathy with Canopy; Aurora Cannabis Inc. is down 7.5 per cent in early trading.

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Hudbay Minerals Inc. was up 7 per cent after an upgrade by BMO, which was mostly tied to the bank raising its price assumptions for commodities.

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Aimia Inc. shares are down 9 per cent after saying late Thursday that it plans to defend itself against a move by Air Canada in Quebec Superior Court to halt a merger that the smaller company sees as key to its corporate reinvention.

The former owner of Aeroplan — a rewards program that Aimia sold to Air Canada last year — says Air Canada has filed an application for an injunction against Aimia’s proposed merger of its loyalty points business with Kognitiv Corp.

The agreement, announced on April 29, would see Aimia’s Loyalty Solutions brand join forces with the Waterloo, Ont.-based tech company to form a new entity called Kognitiv, leaving Aimia with a 49 per cent stake in the spinoff.

With a file from The Canadian Press

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