Andrew Harrer | Bloomberg | Getty Images
Check out the companies making headlines in the midday trade
Tilray, Canopy Growth, Aphria, Aurora Cannabis – Several cannabis stocks fell Thursday, giving up some of the sharp gains earlier this week, as Reddit traders piled names. Tilray’s shares fell more than 40% after rising 50% on Wednesday. Canopy growth fell 21%, Aphria fell 31% and Aurora Cannabis fell more than 21%.
Bank of New York Mellon – BNY Mellon’s shares rose 2.7% in the midday trading session after it announced it would start financing bitcoin and other digital currencies. The announcement represents a significant step by one of the country’s most prominent custodian banks to validate banking activity and the financing of bitcoins and other digital currencies.
Zillow – Shares in the real estate technology company rose more than 15% after a stronger-than-expected earnings report. Zillow reported 41 cents in earnings per share and $ 789 million in revenue in the fourth quarter. Analysts polled by Refinitiv had expected 27 cents a share and $ 741 million. After the report, Citi updated the shares to buy from neutrals.
Kraft Heinz – Food stocks rose 5.6% after Heinz exceeded estimates in the upper and lower lines for the fourth quarter. The company also announced that it was selling its nut business to Hormel Foods for more than $ 3 billion in cash. The business includes the Planters and Corn Nuts brands.
Under Armor – The retailer’s stock rose 3% after Piper Sandler raised the stock to an overweight rating. “UAA’s shares remain the ‘most rejected’ in our coverage,” the company said in a note to customers. The company also doubled its target share price from $ 14 to $ 28. The new target is about 25% above where the stock closed on Wednesday.
Simon Property Group – The shopping center operator’s shares gained more than 3% after Morgan Stanley raised the shares to an overweight rating. “As retailers face ever-increasing secular challenges, we see several drivers of profit growth for SPG,” the company wrote in a note to customers. Morgan Stanley has a target of $ 125 for the shares, 18% above Wednesday’s closing price.
Spirit Airlines – The airline’s discounted shares fell more than 8% after reporting disappointing revenue in the fourth quarter. Seaport also downgraded Spirit Airlines from purchasing to neutral.
Generac – The shares of the power system company increased 11% after hitting the upper and lower lines of quarterly earnings. Generac earned $ 1.97 per share on revenue of $ 761 million. Wall Street expected a gain of $ 1.96 per share and revenue of $ 731 million, according to Refinitiv.
Virgin Galactic – Virgin Galactic’s shares rose more than 7% in Thursday’s trading after an FAA warning indicated that the company’s next space flight attempt is still underway as early as Saturday. An FAA notice published on Thursday said that airspace around Virgin Galactic’s base of operations at Spaceport America, New Mexico, would be restricted for space operations from Saturday at 9 am ET until Sunday at 6 pm ET.
Restaurant Brands – Restaurant Brands shares fell more than 4% after reporting disappointing gains. Restaurant Brands reported earnings of 53 cents per share, compared to analyst estimates of 65 cents per share, according to Refinitiv.
Tempur Sealy – Mattress maker shares rose 10% until midday, after the company announced a profit of 67 cents per share in the previous quarter, exceeding Refinitiv’s estimate by 15 cents. The company also said it expects sales growth to be between 15% and 20% in 2021.
MGM Resorts – The casino operator’s shares fell more than 3% after disappointing quarterly numbers. MGM reported a 53% drop in revenue in the fourth quarter, the number of sales was also below FactSet’s estimate. It recorded a quarterly loss of 90 cents, slightly better than expected, according to FactSet.
Zynga – The shares of the mobile game developer rose nearly 9% at noon, after CEO Frank Gibeau said the company was open to receive a takeover bid. He added, however, that Zynga was not actively looking for a purchase. The company also reported a 61% increase in net reserves in the previous quarter, exceeding analysts’ expectations.
Sleeps – The state-of-the-art smart speaker maker saw its shares soar more than 16% after a strong earnings report. Sonos surpassed both the upper and lower line estimates in its last quarter, according to Refinitiv. The company also raised its revenue orientation for the entire year.
– with reports by Yun Li, Jesse Pound, Tom Franck, Pippa Stevens and Richard Mendez from CNBC.