Virgin Galactic, Gap, Nikola and more

A Virgin Galactic logo is seen outside the building during the company’s first day of trading on the New York Stock Exchange (NYSE) on October 28, 2019 in New York City.

JOHANNES EISELE | AFP | fake images

Check out the companies that are in the headlines for midday trades.

galactic virgin – Shares of the space company fell 14% after a presentation showed that President Chamath Palihapitya sold his personal holdings of 6.2 million shares for approximately $ 213 million. He still owns 15.8 million shares with investment partner Ian Osborne. Palihapitiya, in a statement to CNBC, said it plans to redirect the sale “towards a large investment that I am making to combat climate change.”

Ark Innovation: Shares in Cathie Wood’s flagship ETF fell more than 6% as rising interest rates put pressure on innovation stocks. The top fund holdings were all in the red. Shares of Tesla fell 7%, Square and Roku lost 6% and Baidu fell 8%. CRISPR Therapeutics fell almost 10% and Shopify fell 7.5%.

Large lots: Retail stocks fell more than 3% after comparable store sales results for the fourth quarter with mixed expectations. The company reported comparable sales growth of 7.9%, before the 8.4% projected by analysts, according to FactSet. The company did not provide guidance for the entire year, citing uncertainty around the pandemic and stimulus from the government. Earnings per share beat expectations, according to estimates compiled by Refinitiv.

Norwegian Cruise Line Holdings: Norwegian shares fell 14%, below other distressed cruise names, after the company announced another share offering. The company is selling about 47.6 million shares at $ 30 a share. Norwegian said it plans to use the funds to buy back debt.

Cisco Systems: Cisco Systems shares rose more than 3% after JPMorgan raised the shares to overweight from neutral. “We are upgrading CSCO shares to Overweight in a combination of tracking enterprise IT spend recovery ahead of expectations, ongoing transformation to subscriptions, as well as a still economic valuation after underperforming peers.” said the firm.

Nikola – The electric truck maker’s stock fell more than 7% after JPMorgan downgraded the rating to neutral from overweight. The Wall Street firm said the “good news” is already Nikola’s stock prices.

Gap: The clothing retailer’s shares rose more than 6% after the company said it is forecasting a rebound in sales growth in 2021 as more consumers return to stores. Gap reported that fourth-quarter sales were below estimates amid the pandemic, but made a profit, thanks to its efforts to sell more merchandise at full price and progress in closing underperforming stores.

Oracle – Technology stocks rose 7% after Barclays raised the company to overweight from the same weight, saying it sees “accelerated growth” that will fuel a “multiple expansion.” Barclays cited “a combination of improved cloud and a better IT spending environment” as factors driving Oracle’s shares higher.

Hibbett Sports: The sports retailer’s shares fell more than 5% due to mixed fourth-quarter results. The company posted earnings per share of $ 1.40 on revenue of $ 367.8 million. Analysts surveyed by FactSet expected earnings per share of $ 1.37 on revenue of $ 380.9 million. However, for 2020, Hibbett touted a record year thanks in part to an increase in online sales.

IMAX Corp. – Imax shares rose 11% after the company said it expects better results this year with consumers returning to theaters. The jump comes despite the theater operator reporting mixed fourth-quarter results, with the company’s losses per share topping a Refinitiv estimate. However, Imax also posted better than expected revenue for the quarter.

– with reporting from CNBC’s Yun Li, Jesse Pound and Rich Mendez.


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