The Ticker: 2 Israelis to Be Extradited to U.S. on Stock Manipulation Charges

CyberArk posts strong earnings for quarter, but shares don’t show it; pharmaceutical stocks selloff pushes Tel Aviv indices lower.

Gery Shalon in court in 2015.
Lior Mizrahi

Israelis to be extradited to U.S. on stock manipulation charges

Israelis Gery Shalon and Ziv Orenstein will be extradited to the United States to face charges of stock manipulation and other offenses, a Jerusalem District Court ordered on Sunday. Together with a third man, Joshua Samuel Aaron, the two have been charged with undertaking massive securities fraud and hacking nine financial institutions, including JPMorgan Chase, Fidelity Investments and E*Trade. Prosecutors say the JPMorgan hack involved stealing records belonging to more than 83 million customers, the largest theft ever of customer data from a U.S. financial institution. The two were first indicted in 2011 on stock manipulation charges by setting up straw companies   and releasing false statements by email with the aim of moving the prices of shares artificially higher before selling them, U.S. federal prosecutors allege. Shalon and Orenstein were arrested in Israel last July at the behest of U.S. authorities. The court deemed evidence submitted by the U.S. sufficient to try the two in Israel, fulfilling requirements for extradition. The Justice Ministry said the two consented to the order. (Jasmin Gueta)

Ziv Orenstein in court in 2015.
Lior Mizrahi

CyberArk posts strong earnings for quarter, but shares don’t show it

CyberArk boosted earnings 46% in the first quarter, although earnings disappointments by cyber security rivals FireEye and Imperva weighed down on its share price. CyberArk said on Friday that its net income, not counting certain items, reached $8.3 million, or 23 cents per diluted share from $5.7 million, or 16 cents, a year earlier. Revenue was $46.9 million, up 43% compared with the first quarter of 2015. The results exceeded Wall Street expectations where the average estimate of analysts surveyed by Zacks Investment Research was for earnings of 16 cents a share and revenues of $43.6 million. CyberArk said it expected revenue for the second quarter to be in the range of $47.5 million to $48.5 million, a 31% to 33% year-over-year growth and above the Wall Street consensus. Net income per share is expected to be in the range of 18 to 20 cents share. CyberArk shares ended down 1.1% at $40.82 in New York on Friday. (TheMarker Staff) 

Pharmaceutical stocks selloff pushes Tel Aviv indices lower

Drug stocks led the Tel Aviv Stock Exchange lower on Sunday. Tracking a drop in pharma shares on Wall Street Friday, Teva Pharmaceuticals dropped 5.5% to 191.80 shekels, Perrigo lost 4.75% to 394.10 and Mylan 3.4% to 152.50. The benchmark TA-25 index lost 0.3% to 1.405.91 points, while the TA-100 ended down 0.5% to 1.215.82 as 599 million shekels ($158 million) in shares changed hands. The decline was reined in by bank stocks, which were mostly higher. Hapoalim ended 1.5% up at 19.40 shekels and Leumi ahead 1.6% at 13.94 shekels. Ability, whose share price has plunged since it announced last week it was restating financial results going back to 2012, tumbled another 2.5% to 11.51 shekels on Sunday. SodaStream advanced 20% to 56.22, two days before it is due to release first-quarter earnings. Gazit Globe added 1.7% to end at 34.34 after it said it was buying the 15% of Gazit development it doesn’t already own from its departing CEO Ronen Ashkenazi. (Omri Zerachovitz)