In this article, we will take a look at the 10 notable market movers to watch on Wednesday.
Pulp and paper company Resolute Forest Products Inc. (NYSE:RFP), electric vehicle maker Rivian Automotive, Inc. (NASDAQ:RIVN) and online food delivery platform DoorDash, Inc. (NYSE:DASH) were spotted making big moves today.
Shares of Resolute Forest Products skyrocketed nearly 65 percent this morning after receiving an acquisition offer from Paper Excellence Group, while Rivian stock jumped over 11 percent after reaffirming its 2022 production target.
Image by Sergei Tokmakov Terms.Law from Pixabay
On the other hand, DoorDash stock fell over seven percent after Amazon decided to acquire stakes in rival Grubhub. In addition, shares of RingCentral, Inc. (NYSE:RNG) and Coinbase Global, Inc. (NASDAQ:COIN) also declined after receiving downgrades from analysts.
Notable Market Movers to Watch on Wednesday
10. Veru Inc. (NASDAQ:VERU)
Number of Hedge Fund Holders: 9
Shares of Veru Inc. (NASDAQ:VERU) rallied over 16 percent on Wednesday morning after the Florida-based biopharmaceutical company published Phase 3 results of its anti-viral oral drug candidate sabizabulin in the New England Journal of Medicine.
Sabizabulin is a novel drug candidate developed by Veru Inc. (NASDAQ:VERU) to treat coronavirus patients vulnerable to acute respiratory distress syndrome (ADRs) and mortality. According to the results, the drug candidate met its primary endpoint. Veru Inc. (NASDAQ:VERU) reported that 210 patients participated in the Phase 3 trial.
9. CureVac N.V. (NASDAQ:CVAC)
Number of Hedge Fund Holders: 11
Shares of CureVac N.V. (NASDAQ:CVAC) turned green today after it filed a patent infringement case against BioNTech SE (NASDAQ:BNTX) in Germany over the use of its messenger ribonucleic acid (mRNA) technology.
CureVac N.V. (NASDAQ:CVAC) claims that BioNTech used its mRNA technology for developing the coronavirus vaccine Comirnaty. CureVac N.V. (NASDAQ:CVAC) is looking for reasonable compensation for the said infringement.
On the other hand, BioNTech is also exploring legal options against CureVac N.V. (NASDAQ:CVAC) following the lawsuit.
8. Rocket Companies, Inc. (NYSE:RKT)
Number of Hedge Fund Holders: 12
Shares of Rocket Companies, Inc. (NYSE:RKT) rose over six percent this morning after Wells Fargo improved its ratings for the financial technology company from “Equal-Weight” to “Overweight.”
Wells Fargo analyst Donald Fandetti thinks that Rocket Companies, Inc. (NYSE:RKT) is well set to capitalize on the disruption in the residential mortgage market. Fandetti also believes that Rocket Companies, Inc. (NYSE:RKT) will be able to boost its market share over time, considering its scale and reach.
Separately, Rocket Companies, Inc. (NYSE:RKT) on Tuesday appointed Bruce Bowden as its chief financial officer (CFO). Bowden previously served New Hampshire-based Bottomline Technologies in the same role.
Like Rocket Companies, Inc. (NYSE:RKT), Rivian Automotive, Inc. (NASDAQ:RIVN), DoorDash, Inc. (NYSE:DASH) and RingCentral, Inc. (NYSE:RNG) were also spotted making big moves this morning.
7. Kornit Digital Ltd. (NASDAQ:KRNT)
Number of Hedge Fund Holders: 19
Shares of Kornit Digital Ltd. (NASDAQ:KRNT) hit a new 52-week low of $20.40 on Wednesday after the maker of industrial inkjet printers lowered its sales outlook for the second quarter.
Kornit Digital Ltd. (NASDAQ:KRNT) now expects to generate revenue in the range of $56.4 – $59.4 million for the second quarter, significantly lower than its previous projection of $85 – $95 million. The revised guidance also missed analysts’ average estimate of $88.5 million.
Investment management firm Wasatch Global Investors talked about Kornit Digital Ltd. (NASDAQ:KRNT) in its first-quarter 2022 investor letter published in May. Here’s what the firm said:
“The greatest detractor from Fund performance for the quarter was Kornit Digital Ltd. (NASDAQ:KRNT). The company makes machines for the environmentally sustainable printing of designs and images on clothing and fabrics. The Covid-19 pandemic highlighted the advantages of Kornit’s on-demand technology, which greatly reduces the need for inventory on hand and in supply chains. Having run up in price significantly during 2021, the stock pulled back in the first quarter of 2022 amid fears that persistent inflation may force the Fed onto a more aggressive path with respect to interest rates. While other investors pondered this possibility, we considered Kornit’s fundamental strengths. These include the company’s large and growing addressable market, talented management team, recurring revenue streams and attractive business model with relatively few competitors. In our view, Kornit is positioned for continued market-share gains and annual revenue growth north of 30%.”
6. Resolute Forest Products Inc. (NYSE:RFP)
Number of Hedge Fund Holders: 21
Shares of Resolute Forest Products Inc. (NYSE:RFP) skyrocketed nearly 65 percent before the opening bell today following the news that Canada-based Paper Excellence Group is acquiring Resolute Forest in a cash deal valued at $1.6 billion.
Resolute Forest Products Inc. (NYSE:RFP) will receive $20.5 for each share of its common stock. The price represents a hefty premium of 64 percent to Resolute stock’s closing price in the previous trading session.
The deal is expected to close by the second half of 2023. CIBC Capital Markets is offering financial advisory services to Resolute Forest Products Inc. (NYSE:RFP) on the agreement.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 29
Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) rose over 11 percent in the mid-day trading session today after the Irvine-based electric vehicle (EV) maker reaffirmed its target of producing 25,000 vehicles in 2022.
The announcement follows a sharp surge in the company’s second-quarter production numbers. Rivian Automotive, Inc. (NASDAQ:RIVN) manufactured 4,401 vehicles in the June quarter, significantly higher than 2,553 in the March quarter.
Earlier this year, asset management firm Baron Funds also talked about Rivian Automotive, Inc. (NASDAQ:RIVN) in its first-quarter 2022 investor letter, stating:
“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian continued its volatile trading following the stock’s IPO in late 2021, declining 52% in the first quarter as investors rotated out of fast-growing long-duration stocks and as industrywide supply-chain issues delayed Rivian’s production ramp. In addition, even while other automotive companies raised prices due to inflationary pressures, Rivian launched a price increase campaign that was not well communicated and, as a result, was met with dissatisfaction by existing reservation holders. While this was an unforced error, the company quickly corrected course, reversing its decision to raise prices for existing reservations, while maintaining the increase on new buyers (which has not caused a material impact to demand). We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and the company’s strong balance sheet, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”
4. RingCentral, Inc. (NYSE:RNG)
Number of Hedge Fund Holders: 43
Shares of RingCentral, Inc. (NYSE:RNG) plummeted over 11 percent this morning after Needham downgraded the provider of cloud-based business communications solutions from “Buy” to “Hold,” citing its decelerating enterprise growth. Needham analyst Ryan Koontz also referred to competition from Microsoft Teams and called it a hurdle in the growth of RingCentral, Inc. (NYSE:RNG).
Separately, investment management firm Carillon Tower Advisers mentioned RingCentral, Inc. (NYSE:RNG) in its first-quarter 2022 investor letter. Here’s what the firm said:
“RingCentral (NYSE:RNG) provides software-as-a-service solutions for global enterprise cloud communications. The firm’s shares have pulled back on fears of potential increased competition and tough comparisons to performance during the COVID-related surge in 2020 and 2021.”
3. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
It has been a rough year for Coinbase Global, Inc. (NASDAQ:COIN). The company’s share price has plummeted nearly 80 percent so far in 2022. The drop was mainly attributed to the declining crypto prices.
Shares of Coinbase Global, Inc. (NASDAQ:COIN) once again fell this morning following a downgrade from Atlantic Equities. The research firm cut its ratings for the cryptocurrency exchange platform from “Overweight” to “Neutral,” citing concerns over the crypto economy.
Atlantic Equities also cut its price target for Coinbase Global, Inc. (NASDAQ:COIN) from $95 per share to $54 per share.
2. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Shares of Altria Group, Inc. (NYSE:MO) turned green in the pre-market trading session on Wednesday, July 6, 2022, following the news that the FDA has suspended its ban on e-cigarettes by Juul Labs.
Juul is an electronic cigarette company partly owned by Altria Group, Inc. (NYSE:MO). The latest development will allow Juul to sell its e-cigarette products for now. Meanwhile, FDA will carry out another review of Juul’s marketing application.
Back in 2018, Altria Group, Inc. (NYSE:MO) acquired 35 percent stakes in Juul in a transaction valued at $12.8 billion. However, Juul’s valuation has sharply plummeted since then amid strict scrutiny from regulators over its nicotine products.
1. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Fund Holders: 52
Shares of DoorDash, Inc. (NYSE:DASH) fell over seven percent today following the news that e-commerce giant Amazon has decided to acquire stakes in Grubhub, which is a rival of DoorDash in the online food delivery market.
Amazon will also offer Grubhub’s food delivery services to its Prime members in the U.S. Industry experts believe that the Amazon-Grubhub partnership would likely impact the market share of DoorDash, Inc. (NYSE:DASH).
Meanwhile, DoorDash, Inc. (NYSE:DASH) is already facing difficulties in boosting its sales this year due to decelerating demand for online food delivery services as life has returned to normal in most parts of the country. DoorDash stock has lost more than 50 percent of its value on a year-to-date basis.
You can also take a peek at 10 Stocks to Profit From Inflation and David Abrams’ 2022 Portfolio: Top 10 Stock Picks.
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Disclosure: None. 10 Notable Market Movers to Watch on Wednesday is originally published on Insider Monkey.
