Diamond Foods Rising on Heavy Volume
Shares of Diamond Foods (NASDAQ: DMND) have been active in Wednesday's trading session. The stock is up 5.28% to $30.09 in the early going. Volume is running 16% above average and more than 1.2 million DMND shares have already changed hands.
Diamond has been undergoing an internal accounting investigation to determine whether suspicious payments to walnut growers were designed to shift costs into the current fiscal year, thereby inflating last year's profits.
The company also revealed that it is now under formal investigation by the SEC in regard to its accounting practices. DMND share have lost more than 62% in just the last three months in the wake of the scandal. The internal investigation has also delayed a $1.5 billion acquisition of the Pringles chip brand from Proctor & Gamble (NYSE: PG) due to the accounting probe.
Diamond Foods, Inc. (Diamond) is a packaged food company focused on building, acquiring and energizing brands. Diamond specializes in processing, marketing and distributing snack products and culinary, in-shell and ingredient nuts.
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