Lululemon, Five Below rise and PagerDuty falls in premarket/ Stocks 02

Pre-market active stocks

Gainers

• MongoDB (NASDAQ:MDB) stock soared 27% In response to strong first quarter results, database software provider MongoDB (NASDAQ:MDB) raised its full-year outlook, sending its stock soaring by 27%.
• Lululemon Athletica (NASDAQ:LULU) stock rose 14% The shares of athletic apparel retailer Lululemon Athletica (NASDAQ:LULU) increased 14% on the release of strong fiscal first quarter earnings, driven by declines in transportation expenses and expansion in China.
• Five Below (NASDAQ:FIVE) stock rose 5.1%; After the discount retailer posted better-than-expected first quarter earnings as cash-strapped consumers searched for less expensive options, Five Below’s (NASDAQ:FIVE) stock increased 5.1%.
• Li Auto (NASDAQ:LI) stock rose 5%;  The share price of Li Auto (NASDAQ:LI) increased by 5% after the Chinese EV maker said that it delivered more than twice as many vehicles in May as it did a year earlier, surpassing 20,000 for the third consecutive month.
• Broadcom (NASDAQ:AVGO) stock rose 0.3%; The stock of Broadcom (NASDAQ:AVGO) increased 0.3%, although the chip manufacturer could not reap the benefits of a positive third quarter revenue outlook on corporate investments in AI-related technology. This year alone, its stock had already increased by more than 40%.

Losers

• SentinelOne (NYSE:S) stock slumped 36%; As a result of SentinelOne’s (NYSE:S) disappointing annual revenue estimate and 5% of the company’s workforce being laid off, the stock fell 36%.
• PagerDuty (NYSE:PD) stock fell 16%; As a result of the macroeconomic climate making software buyers more hesitant, PagerDuty’s (NYSE:PD) stock slumped 16% after the cloud computing business provided weaker-than-anticipated sales expectations for the fiscal year.
• ChargePoint (NYSE:CHPT) stock fell 4.6% Even having a good first quarter, ChargePoint (NYSE:CHPT) gave dismal revenue projections for the current quarter, causing the stock to drop 4.6%.

MARKET MOVERS 

ACTIVE STOCKS

GAINERS

• Broadcom Inc AVGO +3%; gave new information on the generative AI possibility, where it expects the opportunity to increase from 10% in FY22 to 25% in FY24 of semi revenues; announced in-line results for Q2 sales/EPS $8.7B/$10.32 met Street.
• Alibaba Group BABA +2%; US-listed Chinese technology companies (BABA, BIDU, JD, PDD, TCEHY) rise in response to news reports the previous night indicating that China was considering a property market support package to boost the country’s economy.
• BioNTech SE  BNTX +3% said that an early-to-mid-stage research using its cancer immunotherapy candidate gotistobart, in collaboration with OncoC4 Inc, showed that tumours shrank in nearly 30% of patients.
• Chemours Co CC +24%; climbs with DD and CTVA following agreement to settle PFAS-related drinking water claims. The three firms said they would establish a $1.19 billion fund to settle PFAS-related drinking water claims in the United States. CC takes a $592 million charge relating to the fund.
• DISH Network DISH + 18%; Bloomberg reported that AMZN is in discussions to offer mobile service in addition to DISH, with the goal of potentially providing Prime users with low-cost or even free nationwide mobile phone service (T, VZ, and TMUS shares decline in response). The article appears to be a follow-up to WSJ 5/26, which can be viewed here: 
• Five Below Inc FIVE +5%; posted solid 1Q results, though mixed in comparison to Street expectations; EPS were higher than expected, but sales were lower; comps up 2.7%; 2Q forecast was given below consensus; 2023 outlook was also trimmed.
• Lululemon Athletica Inc LULU (+13%), which broke its nine-day losing streak, delivered Q1 earnings ahead of expectations and upped its outlook for FY23 as a result. The company also reported 1Q sales and EPS that were stronger than expected across all channels and geographical areas.

LOSERS

• Carvana Co CVNA -5%; exchange offer for up to $1 billion in notes is cancelled.
• Pagerduty Inc PD -15%; managed to slightly exceed top-line expectations in the quarter, posting $103.2M versus a $103M guidance midpoint; observed increased churn specifically in the SMB market (20% of total ARR, but the majority of customer base); lower year revs guidance.
• ARMOUR Residential REIT ARR-36%; of $563.6M, below expectations of $594.4M; updated outlook calls for FY24 revs of $590-600M vs. prior range of $631-640M; S -36%; following reporting mixed F1Q24 results with lacklustre sales of $133.4M (expected $136.6M), up 70% y/y, and ARR of $563.6M.
• T-Mobile Us TMUS fell by 8%, along with VZ and T, after Bloomberg reported that AMZN and DISH are in discussions to offer mobile service, with the goal of potentially providing Prime users with countrywide, low-cost or even free mobile phone service.
• Xcel Energy Inc Wolfe Research downgraded XEL (-2%) to Peer Perform due to the lower-than-anticipated 9.25% ROE outlined in the MN electric rate case (31% of rate base) and uncertainty surrounding the outcome of the Co electric rate case (27% of rate base) (also note utilities underperform today).
• Tillys Inc TLYS -8%, Q1 EPS loss (-$0.40) vs. loss estimate (-$0.33), and Q1 revenue $123.6M vs. estimate. $123.75M; forecasts Q2 EPS loss (13c-27c) versus 0c; and revenue $148M-$158M versus forecast. $160.5M.

Upgrades by Experts

After reporting Q4 earnings, C3.ai was upgraded, but shares fell due to weak forecast.

Following Q4 earnings, Wedbush upgraded C3.ai (NYSE:AI) to Outperform from Neutral and increased its price objective to $50.00 from $24.00.

Chevron receives another upgrade

RBC Capital boosted its price objective for Chevron (NYSE:CVX) from $165.00 to $180.00 and upgraded the stock to Outperform from Sector Perform, noting that the PDC Energy (NASDAQ:PDCE) deal re-rates the company’s FCF yield higher.

Yesterday, after JPMorgan promoted its price target for Domino’s Pizza (NYSE:DPZ) from $340.00 to $360.00 and upgraded the firm to Overweight from Neutral, shares of DPZ increased by more than 2%.

The Trade Desk (NASDAQ:TTD) was upgraded by Morgan Stanley to Overweight from Equalweight with a $90.00 price objective, saying that the firm is promoting and profiting from expansion in CTV and retail media.

Downgrades by Experts

Following a Q1 shortfall, FTDollar General was downgraded at two firms.

After Dollar General (NYSE:DG) disclosed a Q1 EPS and sales shortfall, two Wall Street companies (Piper Sandler, Atlantic Equities) downgraded the stock, which caused a more than 19% decline in share price yesterday.

Warner Music downgraded due to concerns about AI and slower growth

Warner Music Group (NASDAQ:WMG) was downgraded by Atlantic Equities from Overweight to Neutral, and the firm lowered its price target from $39.00 to $26.00. 

Today’s premarket decline of more than 2% in Xcel Energy (NASDAQ:XEL) shares followed the company’s downgrading at two Wall Street companies.

JPMorgan lowered its price objective from $79 to $68 and downgraded the stock from Overweight to Neutral. Wolfe Research, meanwhile, lowered from Outperform to Peerperform.
Ginkgo Bioworks (NYSE:DNA) was downgraded by Goldman Sachs from Neutral to Sell, and the firm lowered its price target from $3.00 to $1.25. Premarket share prices dropped by close to 5%.

Insider trading

 Everbridge, Inc. (EVBG) Director David Henshall filed a form 4 with the SEC disclosing the acquisition of 20,000 common shares on May 30th at a price of $23.24.The cost of the acquisition was $464,800.Following the acquisition, Henshall now holds 28,331 common shares in total.

 Gary Torgow, a director of Huntington Bancshares (HBAN), filed a form 4 with the SEC disclosing the acquisition of 23,680 common shares on May 30th at a price of $10.5631. The purchase is estimated to be worth $250,000.

Director Torgow of Huntington Bancshares purchases $250,000 in stock.

Chatham Lodging Trust (CLDT) Director Edwin Brewer filed a form 4 with the SEC disclosing the acquisition of 8,800 common shares at $18.95

Earnings Calendar

Friday June 2, 2023

NO Earnings