Companies Making Big Moves in the Market
Lululemon
Shares of athleisure clothing company Lululemon surged over 10% after the announcement that its stock will be added to the S&P 500 on Wednesday. This comes as Activision Blizzard is being replaced by Lululemon following its acquisition by Microsoft.
Pfizer
Pfizer’s shares rallied 5% after receiving an upgrade by Jeffries to a “buy” rating. Despite Pfizer cutting its full-year guidance due to declining vaccine sales, Jeffries sees this as an attractive buying opportunity. However, vaccine makers Moderna and BioNTech experienced declines of 4.7% and 5.4% respectively, while Novavax dropped 6%.
News Corp
News Corp’s stock rose by 3% during midday trading after reports that activist shareholder Starboard Value has built a stake in the company. It is expected that Starboard will recommend spinning off News Corp’s digital real estate division.
Alignment Healthcare
Shares of Alignment Healthcare soared 20% after receiving an upgrade to a “strong buy” rating from Raymond James. This upgrade was attributed to the healthcare company’s retention of its 4-star Medicare rating, renewed focus on growth, and its favorable valuation.
Varonis Systems
Cybersecurity stock Varonis Systems experienced a 6.2% increase following an upgrade to “overweight” by Morgan Stanley. The firm believes that the company’s exposure to artificial intelligence could benefit its shares.
Manchester United
English soccer club Manchester United saw a 6% decline in its shares after British billionaire Jim Ratcliffe made a bid of over $1.5 billion for a 25% stake in the company. This follows the withdrawal of a bid by Qatari businessman Sheikh Jassim bin Hamad al-Thani to buy the club from its current owners, the Glazer family.
Tal Education
Education technology stock Tal Education experienced a 7.2% increase after UBS upgraded its shares to a “buy” rating. The upgrade was based on an attractive valuation and positive outlook for Tal Education’s non-academic tutoring business.
Charles Schwab
The stock of brokerage firm Charles Schwab rose over 5% following better-than-expected earnings. Schwab’s earnings of 77 cents per share surpassed forecasts, although the company did lower its full-year revenue outlook.
Albemarle
Shares of lithium producer Albemarle increased by 2.7% after the company withdrew its offer to acquire Liontown Resources. Albemarle cited growing complexities associated with the transaction as a factor in its decision.
Greenbrier
Transportation services company Greenbrier’s shares rose nearly 5% after Susquehanna upgraded its stock to a positive rating. Analyst Bascome Majors pointed to a strengthening backdrop for the railcar industry and potential for improved margins as catalysts for “moderate upside” in Greenbrier.
Vista Outdoor
The stock of sports and recreation company Vista Outdoor declined by 24% after releasing preliminary fiscal second-quarter results showing an expected drop in sales year over year due to a challenging economic environment. Vista Outdoor also lowered its full-year earnings and revenue guidance.
Henry Schein
Healthcare solutions provider Henry Schein’s shares slipped nearly 2% after experiencing a cybersecurity incident that impacted part of its manufacturing and distribution businesses.
Source: ‘s Yun Li, Fred Imbert, Hakyung Kim, Samantha Subin, Alex Harring, Pia Singh, and Lisa Han contributed reporting.
