Biggest stock movers today: Boeing, American Eagle, Harpoon Therapeutics, Ambrx, and more
Heron Therapeutics, Inc. (HRTX) Stock, HARP Stock, BA Stock, ALK Stock, AMAM Stock, JNJ Stock, DTC Stock, CROX Stock, AEO Stock, MRK Stock, SPR Stock, DADA StockNiloofer Shaikh,
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Stock futures trade mixed on Monday ahead of inflation data and upcoming big bank earnings later this week.
Here are some of Monday’s biggest stock movers:
Biggest stock gainers
- Ambrx Biopharma (NASDAQ:AMAM) experiences a remarkable surge, leaping as much as 103% on Monday following the announcement that Johnson & Johnson (NYSE:JNJ) will acquire the biotech firm. The all-cash merger transaction is set at $28 per share, reflecting a total equity value of approximately $2B. The accounting treatment (business combination or asset acquisition) will be determined on or before the expected 1H24 closing.
- American Eagle Outfitters (NYSE:AEO) shares surged 13% to new 52-week highs after announcing Q4 revenue growth of approximately 8%, with American Eagle and Aerie performing strongly. The Pittsburgh-based company raised its Q4 revenue outlook to low double digits, citing a four-point positive contribution from the 53rd week. Operating profit is now expected to be around $130M, up from the prior outlook of $105M to $115M. The improved outlook is attributed to record holiday sales and robust merchandise margins. AEO expresses confidence in healthy earnings growth and operational improvement, emphasizing inventory discipline, expense control, and ongoing profit improvement initiatives.
- Harpoon Therapeutics (NASDAQ:HARP) witnessed a remarkable surge, surpassing 100% after Merck (NYSE:MRK) agreed to acquire the South San Francisco-based cancer drugmaker at an approximate price of $23 per share in cash for ~$680M of total equity value. This offer represents a premium of 118% over Harpoon’s last closing price of $10.55.
- Heron Therapeutics (NASDAQ:HRTX) shares surged % following a partnership with CrossLink Life Sciences. The collaboration aims to expand the sales network for the ZYNRELEF® extended-release solution. The five-year distributor partnership will commence regionally and expand nationally, with approximately 650 representatives added to Heron’s sales network over the next year. CrossLink will serve as the primary partner in the US for the promotion of orthopedic indications, with compensation linked to growth over a predetermined baseline period.
- Crocs (NASDAQ:CROX) shares soared by 12% following a positive guidance update. The company anticipates achieving a record 2023 revenue of approximately $3.95 billion, an 11% increase from the previous year. CROX highlighted strong free-cash flow, enabling a $277 million net debt payment in the quarter and a $665 million full-year debt reduction. CEO Andrew Rees emphasized their position of strength entering 2024 and the decision to reinvest margins into strategic investments for long-term growth. Q4 revenue is expected to grow over 1%, with the Crocs Brand up almost 10% and HEYDUDE down 19%. The full-year 2023 non-GAAP operating margin is projected to exceed 27%.
Biggest stock losers
- Boeing (NYSE:BA) shares fell by over 9% following a weekend plane accident involving the 737-9 Max that prompted the FAA to temporarily ground 171 of the planes. Aerospace supplier Spirit AeroSystems (NYSE:SPR), responsible for manufacturing and installing the door plugs in question, also experienced a 15% decrease. Alaska Airlines incurred a loss of approximately 6% in the early trading hours.
- Solo Brands (NYSE:DTC) shares plunged 34% after the company lowered its FY2023 revenue outlook to $490M-$500M from the previous range of $520M-$540M and below the consensus of $530.58M. The adjusted EBITDA margin is now expected to be in the range of 14% to 15%, below the previous guidance of 17% to 18%. The company also announced the appointment of Christopher Metz as its new President, Chief Executive Officer, and Director of the Board, effective January 15, 2024.
- Dada Nexus (NASDAQ:DADA), a subsidiary of JD.com, experienced a 26% drop after revealing suspicious practices during a routine audit. The company estimates that around RMB500M of revenues from online advertising and marketing services and RMB500M of operations and support costs may have been overstated for the first three quarters of 2023. The company also halted the use of its revenue guidance for Q4 and the full year of 2023 until further notice. The audit committee of the company’s board decided to conduct an independent review to determine the financial impact and scope of the suspicious practices.
