Pre-Market:Pre-Market
Pre-Market active stocks
Gainers
- Rocket Lab USA (NASDAQ:RKLB) shares rose more than 19% in early trade after the business announced a $515 million deal with a US government client to develop, construct, transport, and operate 18 space vehicles.
Losers
- Nike (NYSE:NKE) shares fell 11.4% in early trade after the company reported disappointing FQ2 earnings and lowered its sales forecast, as well as announcing $2 billion in cost savings over the next three years. The sports apparel behemoth predicted for FQ3 reported sales to be slightly negative and FQ4 reported revenue to be up in the low single digits, both of which were lower than analysts’ prior expectations.
- Tencent (OTCPK:TCEHY) shares fell 12.5% in Hong Kong and NetEase (NASDAQ:NTES) shares fell 23.5% in pre-market trading after China released draft guidelines on Friday aimed at curbing excessive spending on online gaming, the ruling Communist Party’s latest move to maintain control of the virtual economy. This action, which is one of a series of steps adopted by Beijing in recent years, has had a substantial influence on the stock values of key gaming businesses.
Stocks in focus
Karuna Therapeutics (NASDAQ:KRTX)
Karuna Therapeutics (NASDAQ:KRTX) shares jumped over 47% in pre-market trade after Bristol Myers Squibb (NYSE:BMY) agreed to purchase the firm for $14 billion in cash. The $330/share price tag for Karuna (KRTX) marks a 53% premium over the stock’s Thursday closing price. Bristol Myers (BMY) shares was down slightly. Karuna’s (KRTX) receptor agonist KarXT will be added to Bristol’s (BMY) portfolio as a result of the agreement. KarXT has the potential to be used as a treatment for schizophrenia, as an adjuvant therapy, and to treat Alzheimer’s disease psychosis.
Ansys (ANSS)
Ansys (ANSS) shares rose more than 21% before the market opened. According to persons familiar with the situation, the engineering software business was working with advisers to examine acquisition potential. According to a business spokeswoman, it is a “longstanding policy” not to comment on merger and acquisition rumors. Oppenheimer said that Ansys (ANSS) might be worth up to $400 per share in a buyout, citing recent software deals from Cisco (CSCO) and Broadcom (AVGO).
ASML (ASML)
ASML (ASML) shares were marginally down before the market opened in the United States. According to Reuters, the Dutch semiconductor equipment manufacturer has delivered its first “High NA” extreme UV lithography gear to chip giant Intel (INTC). According to Reuters, the new machines, which cost more than $300 million apiece, would aid chip manufacturers in producing smaller and quicker semiconductors. ASML is the leading manufacturer of lithography systems, which are equipment that employ lasers to assist produce chip circuits.
Lumentum (LITE)
In pre-market trading, Lumentum (LITE) gained more than 3% after Craig-Hallum upgraded the stock to Buy from Hold, citing rising interest in the small-cap space and the firm being near the bottom of the telecom cycle. The firm believes that the telecom industry, to which Lumentum (LITE) has a significant exposure, is about to bottom out. In 2024, Craig-Hallum expects the corporation to see inventory burn as well as a move to cutting-edge technology.
Major Deals
Adobe Systems and Figma have mutually agreed to end their merger deal.
Adobe Systems (NASDAQ:ADBE) and Figma have amicably agreed to cancel their previously planned merger, according to a press release issued on Monday.
The intended purchase of Figma by Adobe by Adobe was first made public on September 15, 2022, and was to be completed through a combination of cash and equity transactions. However, both corporations have announced that this deal would no longer be pursued.
This collective decision to reject the merger suggests a strategic rethinking or a change in circumstances, prompting both firms to reexamine the merits and viability of the combination. The transaction had not been approved by regulatory organizations such as the European Commission and the UK Competition and Markets Authority.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” stated Shantanu Narayen, chair and CEO of Adobe.
Nippon Steel will pay $14.1 billion to purchase US Steel.
Nippon Steel (TYO:5401) of Japan announced the acquisition of United States Steel (NYSE:X), also known as U.S. Steel. The transaction entails an all-cash payment of $55 per share, which values US Steel at $14.1 billion. With debt included, the overall enterprise value of the acquisition is $14.9 billion.
Following the news, S&P placed Nippon Steel’s long-term issuer credit rating of ‘BBB+’ on a negative credit watch. The $14.9 billion cash deal is likely to significantly damage Nippon Steel’s financial position due to a huge increase in investment-related debt.
Fitch Ratings, on the other hand, has placed US Steel on a Rating Watch Positive. The agency attributed the optimistic prognosis to the projected increase in size and profitability of the merged firm following the purchase.
Warner Bros. Discovery and Paramount Pictures are in merger negotiations.
Warner Bros Discovery (NASDAQ:WBD) stock fell sharply on Wednesday after Axios reported that the business is in exploratory talks with Paramount Global (NASDAQ:PARA) about a possible merger.
The CEOs of both corporations recently met in New York City to discuss this prospective merger, according to the story, which cites various sources. The planned combination of Warner Bros. Discovery and Paramount Global may create a huge powerhouse in the news and entertainment business, perhaps sparking further mergers and consolidations.
Aon will pay $13.4 billion to purchase NFP.
NFP, a middle-market property and casualty broker, benefits consultant, wealth manager, and retirement plan adviser, has agreed to be acquired by Aon (NYSE:AON). The deal, which is expected to be worth $13.4 billion when completed, would include $7 billion in cash and $6.4 billion in Aon stock.
NFP is being bought by funds linked to its principal financial backer, Madison Dearborn Partners, as well as funds linked to HPS Investment Partners.
Insider trades & hedge funds weekly
Crown Castle accepts Elliott’s requirements and revamps the Board and Fiber unit.
Crown Castle International (NYSE:CCI) announced a comprehensive assessment of its fiber business on Wednesday, as well as the removal of two board members. This action is consistent with a deal made with Elliott, an activist investment group that has been pressing for reforms at the cellular tower firm owing to persistent underperformance.
As part of this agreement, the business will form two new committees. One will be in charge of the Fiber segment, while the other will be in charge of finding a new CEO. Following Elliott’s request for a leadership makeover, Jay Brown, the former CEO, stepped down earlier this month.
Insider purchases
Complete Solaria (NASDAQ:CSLR) reported that its chairman, T.J. Rodgers, had invested $5 million in the firm via private placement at the market price. Yesterday, shares increased by more than 9% as a result of the statement.
James Lynch, Director of Globalstar (NYSE:GSAT), acquired 750,000 common shares for about $1.3 million at $1.665-$1.6958 per share. Lynch is the Managing Partner of Thermo Capital Partners, which purchased the shares. Lynch now holds 7,540,720/8,040,720 shares indirectly through Thermo Capital, and another 806,930 directly as a result of the most recent transaction.
Beyond Air (NASDAQ:XAIR) has had a handful of insider purchases. Steven Lisi, CEO, acquired 77,775 shares at $1.6303, totaling more over $125,000. Meanwhile, for $1.635 per share, Director Rober Carey acquired 1,200,000 shares, totaling nearly $2 million.
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Airbnb suffers as a result of KeyBanc’s downgrade
Airbnb (NASDAQ:ABNB) shares were down nearly 3% in premarket trading Tuesday after KeyBanc downgraded the business from Overweight to Sector Weight.
Following the split, WK Kellogg began at Sell.
Following the conclusion of Kellogg Company’s (NYSE:K) spinoff of its North American cereal division into the WK Kellogg standalone entity, Goldman Sachs commenced coverage on WK Kellogg (NYSE:KLG) with a Sell rating and a price target of $11.00.
WK Kellogg’s stock dropped significantly on the first day after the spinoff, closing more than 9% down on Monday.
Nortfolk Southern and Bread Financial have been downgraded.
Norfolk Southern (NYSE:NSC) shares fell more than 2% on Monday after BofA Securities downgraded the firm to Neutral from Buy and reduced its price objective to $215.00 from $266.00, citing operational difficulties and excessive costs.
Bread Financial (NYSE:BFH) has been downgraded to Sell from Neutral by Goldman Sachs, with a $32 price target. As a result, shares dropped about 2% on Monday.
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ell suffers as a result of a downgrade by Barclays.
Dell Technologies (NYSE:DELL) shares tumbled 3% before the bell on Thursday after Barclays downgraded the firm to Underweight from Equalweight, with a $53.00 price target.
Cloudflare began at Underperform.
Cloudflare (NYSE:NET) has been added to BofA Securities’ coverage with an Underperform rating and a $52.00 price objective.
Crocs (NASDAQ:CROX) shares were down more than 2% in pre-market trading today after B.Riley downgraded the firm to Neutral from Buy and reduced its price objective to $101.00 from $125.00.
Verint Systems (NASDAQ:VRNT) was downgraded from Outperform to Perform by Oppenheimer.
Following the company’s announced Q2 EPS and sales misses, as well as dismal full-year forecasts, shares fell more than 17% pre-market today.