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 | Getty Images
Check out the companies that are making headlines in the midday trading session.
galactic virgin – The space company’s shares fell 14% after a lawsuit showed that President Chamath Palihapitya sold his personal holdings of 6.2 million shares for about $ 213 million. He still owns 15.8 million shares with investor partner Ian Osborne. Palihapitiya, in a statement to CNBC, said he plans to redirect the sale “to a major investment I am making in fighting climate change”.
Ark Innovation – The shares of ETF, Cathie Wood’s flagship, fell more than 6%, with rising interest rates putting pressure on innovation stocks. The main holdings of the funds were all in the red. Tesla’s shares fell 7%, Square and Roku lost 6% and Baidu fell 8%. CRISPR Therapeutics fell almost 10% and Shopify fell 7.5%.
Big Lots – Retail inventory fell more than 3% after its store sales results comparable to mixed expectations for the fourth quarter. The company recorded comparable sales growth of 7.9%, compared to 8.4% projected by analysts, according to FactSet. The company did not provide guidance for the entire year, citing uncertainties surrounding the pandemic and government stimulus. Earnings per share exceeded expectations, based on estimates compiled by Refinitiv.
Norwegian Cruise Line Holdings – Norwegian shares fell 14%, outperforming other struggling cruise names, after the company announced another share offer. The company is selling about 47.6 million shares for $ 30 each. Norwegian said it plans to use the funds to repurchase debt.
Cisco Systems – Shares in Cisco Systems rose more than 3% after JPMorgan raised its shares from neutral to overweight. “We are upgrading CSCO’s shares to Overweight in a combination of tracking enterprise IT expense recovery ahead of expectations, transforming the right path for subscriptions, as well as still cheap valuation after underperforming peers,” said the company.
Nikola – Electric truck maker shares fell more than 7% after JPMorgan downgraded overweight shares to neutral. The Wall Street firm said the “good news” was already Nikola’s stock prices.
Gap – The shares of the clothing retailer increased more than 6% after the company said it is forecasting a resumption of sales growth in 2021, as more consumers return to stores. Gap reported that fourth-quarter sales were below expectations in the midst of the pandemic, but posted a profit, thanks to its efforts to sell more merchandise at full price and the progress it has made in closing underperforming stores.
Oracle – Technology stocks jumped 7% after Barclays lifted the company to an above-average weight, saying it sees a “growth acceleration” that will lead to “multiple expansion”. Barclays cited “a combination of an improved cloud and a better IT spending environment” as factors in increasing Oracle’s stock.
Hibbett Sports – The sports retailer’s shares fell more than 5% due to mixed fourth quarter results. The company recorded earnings per share of $ 1.40 on revenue of $ 367.8 million. Analysts surveyed by FactSet had expected earnings per share of $ 1.37 over revenue of $ 380.9 million. For 2020, however, Hibbett announced a record year thanks in part to the increase in online sales.
IMAX Corp. – Imax shares jumped 11% after the company said it expects better results this year, with consumers returning to cinemas. The leap comes despite the theater operator reporting mixed fourth quarter results, with the company’s losses per share exceeding Refinitiv’s estimate. However, Imax also posted better-than-expected revenue for the quarter.
– with reports by CNBC’s Yun Li, Jesse Pound and Rich Mendez.