Crocs, Inc (NASDAQ:CROX) and Myriad Genetics Inc (NASDAQ:MYGN) were among the biggest stock market movers on Monday.  The shares of the casual footwear maker enjoyed a significant increase while the molecular diagnostic company suffered a steep drop.

Crocs gained 21% after receiving $200 million investment

The stock price of Crocs, Inc (NASDAQ:CROX) surged more than 21% to $16.14 per share driven by its announcement that an investment fund affiliate of Blackstone Group L.P. (NYSE:BX) invested $200 million on its newly issued series A convertible preferred stock.

According to the company, its preferred stock has a 6% cash dividend rate and it is convertible into common stock with a $14.50 per share conversion price, a 9% premium to the $13.33 closing price of its shares on December 27, 2013.

Crocs approves $350 millions shares buyback program

The company said it would revise its capital structure to be able to accommodate the $350 million shares repurchase program approved by its board of directors.

In a statement, Jeff Lasher, chief financial officer of Crocs, Inc (NASDAQ:CROX) said, “We will add $200 million of long-term non-publicly traded preferred equity and the stock repurchase program, when completed, will reduce our publicly traded common stock float by approximately 30% (at today’s market price), while maintaining a strong net cash position on our balance sheet.  We expect these initiatives to reduce volatility in both our common stock price and our shareholder base and provide a strong foundation to unlock long-term value for our shareholders.”

Lasher added that the company expects to start the shares buyback in the first quarter of 2014. He added, “We intend to be patient, methodical and opportunistic as we execute this expanded buyback plan.”

Myriad declined 14% on CMS plan to cut reimbursement rate

On the other hand, the stock value of Myriad Genetics Inc (NASDAQ:MYGN) plummeted by almost 14% to $20.80 per share today. The decline was caused by the statement of the Centers for Medicare and Medicaid Services (CMS) confirming its plan to reduce the reimbursement rate for the company’s BRCA genetic tests for ovarian and breast cancers.

According to the CMS, it would extend the public comment period for its proposal to cuts the reimbursement rate for the BRCA genetic tests from $2,795 to $1,495. The report prompted several analysts to downgrade their recommendations for the shares of Myriad Genetics Inc (NASDAQ:MYGN).

Analyst rating

J.T. Haresco, analyst at JMP Securities lowered his rating for the stock from market perform to market under-perform with a $15 price target. He opined that there is a little chance for the CMS to maintain the previous reimbursement rate for the BRCA genetic tests. In addition, Haresco noted that Myriad Genetics Inc (NASDAQ:MYGN) is confronting stronger competition at it does not have growth catalysts in the near-term.