After Hours Summary: BILL +20.4%, AMAT +1.9% higher on earnings; BBBY -41.5% falls sharply as Ryan Cohen completes sale of BBBY stake, co also hires law firm to help address debt load, according to Bloomberg; MSGE +7.4% higher as co to explore spin-offAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: BILL +20.4% (also names new COO), AMAT +1.9%
Companies trading higher in after hours in reaction to news: MSGE +7.4% (board authorizes mgmt to explore spin-off), HD +1.2% (authorizes a new $15 bln share repurchase program; also elects CEO Ted Decker as Chair of the Board), TOL +0.8% (to create joint venture with PGIM Real Estate for San Diego development), KDP +0.8% (in talks to acquire VPX, owner of Bang Energy energy drink, according to Bloomberg), KRYS +0.7% (FDA accepts its BLA application for dystrophic epidermolysis bullosa), AGX +0.3% (founder/CEO retires; names new CEO)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: OSIS -9.4%, MAXN -4.8%, STNE -4.4%, GLOB -2.1%, ROST -1%
Companies trading lower in after hours in reaction to news: BBBY -41.5% (Ryan Cohen completes sale of BBBY stake; also hires law firm to help address debt load, according to Bloomberg Law), GME -10.7% (BBBY news dragging down meme stocks), AMC -4.2% (responds to Cineworld comments, AMC continues to be optimistic about increasing demand for Q4 and 2023), APRN -2.6% (BBBY news dragging down meme stocks), FUBO -2.5% (BBBY news dragging down meme stocks), HOOD -1.8% (reports July operating data), EXK -1.1% (founder passes away), BLTS -0.3% (terminates previously announced combination with MANSCAPED), ROKU -0.2% (announces three new TV brands in Mexico), SBUX -0.1% (COO will be departing, effective October 1), ALL -0.1% (names new CFO)
Closing Stock Market SummaryThere was some up and down price action today in a narrow trading range, leading to a mixed market that followed form with mixed earnings results and mixed economic data. Fresh buying interest in the final hour of trading sent the major indices to new session highs before losing steam and dipping into the close. There was a lack of conviction on either side of the tape and volume was on the lighter side today.
Mixed action saw the mega caps trading roughly in line with the broader market while small and mid cap stocks outperformed. The Vanguard Mega Cap Growth ETF (MGK) closed up 0.1% versus a 0.3% gain in the Invesco S&P 500 Equal Weight ETF (RSP) and a 0.2% gain in the S&P 500. The Russell 2000 (+0.7%) and S&P Mid Cap 400 (+0.8%) closed ahead of the major indices.
Market breadth showed the lack of conviction for either side of the tape. Advancers led decliners by a 7-to-5 margin at the NYSE and an 11-to-10 margin at the Nasdaq.
Semiconductor related names had a strong showing thanks to Wolfspeed's (WOLF 112.94, +27.29, +31.9%) favorable quarterly results and guidance. The PHLX Semiconductor Index closed up 2.2%. The strength here helped propel the information technology sector (+0.5%) to second place on the day.
Cisco's (CSCO 49.37, +2.71, +5.8%) earnings-driven gains also boosted the information technology sector.
Bath & Body Works (BBWI 40.26, +0.07, +0.2%) and Tapestry (TPR 37.57, +0.46, +1.2%) offered some support to the consumer discretionary sector (-0.04%) after reporting quarterly results but Tesla's (TSLA 908.61, -3.38, -0.4%) modest loss weighed on sector performance. Kohl's (KSS 31.33, -2.62, -7.7%), though not a sector component, also weighed on performance as retail peers traded down in solidarity.
Rising oil prices sent the energy sector (+2.5%) to the top of the leaderboard. Notably, it was the only sector to move more than 1.0% in either direction. WTI crude oil futures rose 2.4% to $90.07/bbl.
Separately, several Fed officials made comments today, including Minneapolis Fed President Kashkari (2023 FOMC voter) saying he does not know if the Fed can bring inflation down without triggering a recession. Saint Louis Fed President Bullard (2022 FOMC voter) said he is leaning towards a 75 basis point rate hike in September and is not sure the worst of inflation has passed, according to The Wall Street Journal. Kansas City Fed President George (2022 FOMC voter) said there is still a significant difference between supply and demand in the economy, adding she is encouraged by the July inflation report, but it's not a time for a "victory lap."
Treasury yields settled lower in a choppy session. The 2-yr note yield fell five basis points to 3.22% while the 10-yr note yield fell one basis point to 2.88%.
Deere (DE) and Foot Locker (FL) report earnings ahead of Friday's open.
There is no U.S. economic data of note out tomorrow.
Reviewing today's economic data:
- Weekly initial jobless claims totaled 250,000 (consensus 266,000) after last week's revised total of 252,000 (from 262,000). Continuing claims totaled 1.437 million after last week's revised total of 1.430 million (from 1.428 million).
- The key takeaway from the report is twofold: first, the initial claims level is still a long way from recession levels; and secondly, this report covers the week in which the survey for the August employment report was conducted. The low level of initial jobless claims supports expectations for continued strength in nonfarm payrolls, which of course should support continued tightening moves by the Federal Reserve.
- The Philadelphia Fed Index improved to 6.2 in August (consensus -4.0) from -12.3 in July. The new orders index, though, remained stuck in negative territory at -5.1, which qualified as an improvement from the -24.8 reading seen in July.
- The key takeaway from the report was the recognition that firms expect overall declines six months from now, evidenced by a -10.6 reading in the future index versus -18.6 in July.
- Existing home sales decreased 5.9% month-over-month in July to a seasonally adjusted annual rate of 4.81 million ( consensus 4.85 million) versus a downwardly revised 5.11 million (from 5.12 million) in June. That is the sixth straight month that existing home sales have fallen. Total sales in July were down 20.2% from a year ago.
- The key takeaway from the report is that higher mortgage rates are taking a bite out of existing home sales, having compounded affordability pressures that persist with still-high (although moderating) prices.
- Weekly EIA Natural Gas Inventories showed a build of 18 bcf versus a build of 44 bcf last week.
Dow Jones Industrial Average: -6.4% YTD
S&P 400: -7.8% YTD
S&P 500: -10.1% YTD
Russell 2000: -10.9% YTD
Nasdaq Composite: -17.1% YTD
Coty CEO Sue Nabi Outearns Amazon’s Andy Jassy in 2021
CEO pay remains supersized despite the annual outrage, signaling just how hard change could be as companies move toward a greater purpose
Capitalism is alive and well in the corner office, where the pay is mega even if the spotlight shines harshly on chief executive officer compensation packages — and could grow harsher still as companies pursue a purpose beyond profit.
The outsized pay at the top is often most stark when CEOs first step in, with initial stock awards ballooning already rich compensation packages into what can be the triple-digit millions.
It was two CEOs stepping in and stepping up who led WWD’s ranking of CEO pay for 2021, drawn from the most recent proxy filings of fashion, retail and beauty companies trading publicly in the U.S.
Coty Inc. CEO Sue Nabi logged a compensation package valued at $283.8 million for her first year, while Andy Jassy, who succeeded Jeff Bezos at Amazon, saw compensation of $212.7 million.
Jassy has the big shoes to fill, but Nabi might actually have the trickier job turning around Coty.
Of course, there are strings attached.
Both Nabi and Jassy received more than 98 percent of their pay in stock awards — the realized value of which will depend on the company’s share price, tying the pay of CEOs to the fortunes of investors.
Stock awards dominated the pay of all the executives topping the list this year, with Warby Parker Inc. co-CEOs Neil Blumenthal and Dave Gilboa each earning $103.6 million compensation packages and The Estée Lauder Cos. Inc.’s CEO Fabrizio Freda logging pay of $66 million.
In all, the study found at least 29 CEOs and executive chairs making $10 million or more in fashion. And, while high, in many cases the pay of CEOs in the retail, fashion and beauty sectors still lags that in other industries such as tech and finance. A stock option incentive package gave Elon Musk a $23.5 billion boost, while Apple’s Tim Cook earned $98.7 million while J.P. Morgan Chase’s Jamie Dimon received $84.4 million and the CEO of Goldman Sachs, David Solomon, earned $39.5 million and Morgan Stanley chief James Gorman logged pay of $34.9 million.
Proponents of big pay have long argued that CEOs are superstars with special skills who make big commitments to the company and deserve to be paid for what they offer and the value they create.
It’s an argument that by and large has not swayed the masses.
Stanford University’s Rock Center for Corporate Governance dove into the public perception of CEO pay in a 2016 survey and found that most Americans believe CEOs are “vastly overpaid” and support “drastic reductions.”
Seventy-four percent of those surveyed believed that CEOs were not paid the correct amount relative to the average worker.
The survey also found that most people underestimated CEO pay, pegging it at $1 million, instead of the average at the time of $9.3 million.
It’s an environment that’s only gotten more charged during the pandemic, when many workers in retail were furloughed and then called essential, but are still feeling the strain even as the gap with CEO pay continues to widen.
Research this year into 300 publicly traded companies in the U.S. by the Institute for Policy Studies showed that the CEO-worker pay gap grew with:
• The average gap between CEO and median worker pay jumping to 670-to-1 from 604-to-1 in 2020.
• Average CEO pay increasing by $2.5 million to $10.6 million as median worker pay increased $3,556 to $23,968.
• Median worker pay not keeping up with the average rate of inflation of 4.7 percent last year at 106 of the firms — or more than one-third of those studied. Inflation is now, of course, almost double that level.
Sarah Anderson, global economy project director at the institute, said: “This notion that it’s the guy in the corner office who’s almost singlehandedly responsible for the company’s value, that’s the notion that’s really propped up these massive CEO paychecks.”
Fashion is indeed a team sport, and Anderson zeroed in on the contribution of “essential” workers who were lauded during the pandemic lockdowns.
“Sustainability should include issues around pay equity,” she said, pointing to a Federal Reserve statistic showing that, in 2020, only 64 percent of Americans could cover a $400 emergency with cash.
“One reason why some people were [in such a precarious position] is because of the corporate-based system that is designed to funnel the rewards upward,” Anderson said. “If we want to be more resilient in the face of future crises of all sorts, whether it’s climate change or financial crisis or a pandemic or whatever, we need to share the rewards.”
Where the popular perception of CEO pay might see greed, executive pay grows out of a complex system that turns on many elements, including perception.
CEOs want to be seen as being paid in line or ahead of their peers to see their hard work — and often a lifetime of striving for the top job — acknowledged. Corporate chiefs also know that tenure at the top can be short and might want to stash away money to fund some post-CEO venture or just to maintain their lifestyles.
Likewise, corporate boards, which are responsible for hiring CEOs, don’t want to be seen as bargain shopping when they’re shaping the future of the multibillion-dollar business in their care.
And so pay goes higher.
When it comes time to work out CEO pay, advisers specializing in the area are hired.
“The board will say, we want to be at median [pay] or above,” said Michael Jenkins, who leads Kearney’s CEO advisory practice. “If you just do the math, the median is going to go up every single year.”
These structural and social issues that have kept pushing CEO pay to the sky highlight the difficulties brands might well face as they continue to pursue a purpose beyond profit and push broader environmental, social and governance issues.
Outsized CEO pay is perhaps the one hot-button topic that boards and the executives themselves could fix immediately — with good PR to boot — if they chose to.
Blame it on human nature or the realities of a competitive market or something else, but they choose not to fix it.
That might not bode well for just how successful companies will be as they tackle issues that run way beyond their control, from climate change to systemic racism.
Jenkins said it’s all about alignment.
“If a purpose-led transformation allows you to be more successful in the marketplace — I can hire better people, I can retain them, I can deliver better profits and as a result, I have more money in the bank — then, yes, that’s about creating alignment between what drives value for my shareholders and what drives value for my stakeholders,” Jenkins said.
“If those two are aligned, then the world is happy,” he said. “Very few shareholders are going to want to fire their leader if they’ve delivered great value for them, but they get a C-plus on the ESG scorecard.
“The CEO pay issue is not an issue in and of itself,” he said. “It is a symptom of the lack of alignment between shareholders and stakeholders and the difficult trade-off between those.”
One thing that seems certain is that CEOs are going to continue to bring home some pretty handsome paychecks — even if they don’t really need the money, but want the recognition — while that alignment is negotiated.
Central Group, Signa Holding Complete Acquisition of the Selfridges Group and Anne Pitcher Resigns
The deal includes the retailer's portfolio which is made up of 18 department stores.
LONDON — The golden keys of the Selfridges Group have been handed over – and its managing director is stepping down.
The acquisition of British luxury retailer Selfridges Group that was revealed in December 2021 by Central Group and Signa Holding has been completed under a 50-50 partnership.
The retailer was acquired by the late Galen Weston for 598 million pounds in 2003.
Central and Signa did not disclose how much they paid for the Selfridges Group, but did hint that it was “not far from the 4 billion pounds reported by the press when the deal was revealed in December, but not that specific amount,” in an interview with WWD earlier this year.
The deal includes the Selfridges Group’s portfolio — which is made up of 18 department stores, including Selfridges in London, Manchester and Birmingham, England; de Bijenkorf in the Netherlands; Brown Thomas and Arnotts in Ireland, and their associated e-commerce platforms and the properties in London, Manchester and five locations in Ireland will be integrated with Central and Signa’s combined existing portfolio of 22 luxury department stores and two new stores to open soon in Dusseldorf and Vienna.
Central and Signa currently hold KaDeWe, Oberpollinger, and Alsterhaus in Germany, and Globus in Switzerland, meanwhile Central wholly owns Rinascente in Italy, and Illum in Denmark.
The merger includes Selfridges Group’s e-commerce platforms, which draw in more than 30 million online visitors per month and ship to more than 130 countries.
The Selfridges Group will be led by Stefano Della Valle, chief executive officer of Central and Signa’s luxury department store group in Europe, in a new expanded role.
Selfridges’ managing director, Anne Pitcher, will remain in the company’s leadership team until the end of the year.
“This news today is also an opportunity for me to share with you that | have decided to leave Selfridges Group at the end of the year. As an organization we have never stood still and it’s important to embrace change. After nearly two decades here, it’s time for me to do a little reinventing of my own,” said Pitcher in her resignation letter.
“I’ve enjoyed the most extraordinary 18 years: first with Selfridges as managing director before moving to lead Selfridges Group in 2019. | can hardly believe how as my career has evolved so too has my purpose. From repositioning Selfridges to be the Best Department Store in the World, through to championing sustainability and purposeful leadership across our group – | am tremendously proud of everything we have achieved together and truly honoured to be handing this iconic business over to our new owners in such great shape.”
The new co-chairman of the group will be Tos Chirathivat, executive chairman and chief executive officer of Central and Dieter Berninghaus, chairman of the executive board of Signa.
“We are long-term investors with a well-established partnership and shared vision to reshape and reinvent the luxury retail industry. We are committed to create the world’s leading luxury omnichannel platform for all our customers through both online and offline channels. We are excited to meet and work with our new colleagues, as well as brand partners to achieve this vision,” Chirathivat and Berninghaus said in a joint statement.
Central Group is controlled by the Chirathivat family, and operates retail businesses in Thailand and Vietnam, as well as in Europe.
RMT boss warns of ‘indefinite’ rail strikes without pay settlement
Lynch calls on ministers to help resolve long-running dispute as UK prepares for more transport walkouts
The head of the RMT union on Thursday warned that passengers face an “indefinite” campaign of strike action on the UK’s railways unless the government and industry reach a negotiated settlement with workers.
RMT general secretary Mick Lynch wrote to Grant Shapps, the transport secretary, demanding ministers step in to end the long-running dispute over pay, working practices and job security, which saw only about a fifth of train services run in Britain on Thursday.
The walkouts by members of the RMT and TSSA were the latest in a wave of industrial action that has hit the transport network this summer, as unions push for significant pay rises to help members cope with soaring inflation though negotiations have stalled.
Lynch accused the government of prolonging the row for political reasons and warned that “the dispute will be prolonged indefinitely” as private train operating companies were shielded from loss of revenue on strike days.
The government assumed financial control of the railways in 2020, when the pandemic led to a sharp fall in passenger revenue, and has put companies on new tightly controlled contracts, whereby they are paid to run services.
“Your government has made the decision to use taxpayer’s money to bail out private train companies from being liable for revenue lost because of industrial action on the condition the same companies comply with government instructions to hold down pay, cut thousands of safety-critical rail jobs,” Lynch wrote.
In response, the Department for Transport said unions should “get off the picket lines and back around the negotiating table” to help end the strikes.
“All these strikes are doing is hurting those people the unions claim to represent, many of whom will again be out of pocket and forced to miss a day’s work,” it added.
Thursday’s strikes marked the start of three days of industrial action across the public transport network.
RMT members will on Friday close swaths of the London Underground and Overground networks when they strike for the fifth time this year in a separate dispute over pay and pensions with Transport for London, which operates the bus, train and tube network in the capital.
More than 1,600 London bus drivers are also set to walk out on Friday and Saturday in a row over pay between the Unite union and bus operator London United, a subsidiary of France’s RATP.
RMT members on the rail network will then stage a second 24-hour strike on Saturday.
Network Rail, which owns and operates the UK’s rail infrastructure, has offered both the RMT and non-management staff at TSSA an 8 per cent pay rise over two years, subject to the modernising of working practices.
Some managers and supervisors within the TSSA this month accepted a separate deal for a one-year, 4 per cent pay rise.
Network Rail has said the average striking RMT member had so far lost more than £2,000 from the strikes and has called on the RMT leadership to give members a vote on the proposed pay deal.
“We’ve put a very good deal on the table . . . but the RMT have refused to put that to a referendum,” Andrew Haines, Network Rail chief executive, told the BBC on Thursday.
WWD : High-End Timepieces Continue to Drive Swiss Watch Exports
July saw China return to growth as overall figures hit a new high
PARIS — Demand for Swiss watches shows no sign of abating, as exports grew 8.3 percent in July to 2.2 billion Swiss francs, or $2.3 billion, the Federation of the Swiss Watch Industry said Thursday.
High-end watches accounted for 95 percent of the month’s export turnover, growing nearly 11 percent both in value and the number of items, the group noted.
Bernstein analyst Luca Solca cautioned that while high-end demand continued to be strong, any slowdown would impact retailers first, as watch export figures primarily reflected wholesale business.
Growth in July was driven by steel watches, which represented 40 percent of exports in value, with volumes also gaining 7.1 percent.
The smaller “other materials” category also contributed to this growth, surging forward 54.1 percent in value and recording a 17.7 percent increase in volume.
While the “other metals” grew 34 percent in value, volume fell 23.6 percent, contributing to an overall decrease of 2.7 percent of the number of exported timepieces in July.
The mid-market segment of watches between 200 and 500 Swiss francs saw another decrease.
The group reported a 26.7 percent slump in volume in that price category. Along with the 29.2 percent decrease in value, the segment continued the downward trend “that has persisted almost uninterrupted since early 2020.”
As in June, Europe continued its recovery, growing 8 percent overall, driven by its main markets, with Italy and Germany growing strongest at 31.1 percent and 12.6 percent respectively. France and the U.K. also showed double-digit growth, as tourist levels remain high across the continent.
The U.S. continued to have momentum, although its 13.5 percent growth showed that this market, which had benefitted from excess product that couldn’t to be delivered to China, is slowing down.
In Asia, a contrasted picture persisted with one notable change: China’s return to growth, with an 18.4 percent surge, after a second quarter heavily impacted by continued COVID-19 closures.
Hong Kong, on the other hand, did not improve and Korea continued to slump, recording a 13.8 percent contraction. Japan showed a 1.4 percent decrease, which the Swiss group described as a “temporary slowdown.”
Swizz Beatz and Timbaland Sue Triller, Seeking $28 Million for Verzuz Rap-Battle Deal
UPDATED: Swizz Beatz and Timbaland have hauled short-form music video app Triller into court, with the pair of artists alleging Triller owes them $28 million after acquiring Verzuz, their livestreaming rap-battle show.
The duo founded the popular Verzuz virtual battle series in March 2020 on Instagram Live, then less than a year later agreed to sell it to Triller for undisclosed terms. Swizz and Timbaland received equity in Triller, part of which they said would be allocated among 43 artists who had appeared on Verzuz, including John Legend, Alicia Keys, 2 Chainz, Rick Ross, Too $hort, Patti LaBelle and Gucci Mane.
According to the lawsuit, after Triller failed to make a large payment to Swizz (Kasseem Daoud Dean) and Timbaland (Timothy Mosley) in January 2022, the company agreed to a settlement requiring Triller to pay them $18 million ($9 million each) by March 20, with $1 million per month for the following 10 months. Triller has not made any of those promised payments, the suit alleges. (A copy of the complaint is below.)
reaches of the Agreement by Defendants.”
In response, a Triller spokesperson said that the company has paid “over $50 million” in cash and stock to Swizz and Timbaland to date. The dispute concerns earn-out payments — and, according to Triller, the duo have not met the threshold for receiving the additional money.
“This is nothing more than a performance dispute,” the Triller rep said in an emailed statement. “Only one payment of $10 million was in question. We don’t believe they have met the thresholds for that payment yet, but have been trying to resolve it amicably.”
The Triller spokesperson continued, “It is unfortunate they elected to elevate this to the press as a ‘legal shakedown’ and it ignores the fact that they have deliverables which include, but are not limited to, delivery of a set number of Verzuz for 2022. We hope this was just overzealous lawyers jumping the gun… If this does proceed in court we look forward to a judgment that weighs all the facts.“
The lawsuit filed on behalf of Swizz Beatz and Timbaland seeks $28,095,000 in damages, plus applicable interest, as well as legal fees and “other and further relief as this Court deems just and proper.”
In a statement in March 2021 after they sold Verzuz to Triller, Swizz Beatz and Timbaland said, “This is a momentous occasion not only for Verzuz and Triller but the music business as a whole. By putting Verzuz in the Triller Network ecosystem and expanding the Verzuz brand to be side by side with the powerful Triller app, we will be able to continue to grow and evolve the music business as a whole, as we have been doing.”
Separately, Triller has been accused by multiple creators of failing to make promised payments under its announced $14 million program with 300 Black influencers to create content for the app, the Washington Post reported earlier this month.
Meanwhile, in early 2021, Universal Music Group pulled its music catalog from Triller, alleging the app maker wasn’t paying artists for the use of their music. In May 2021, the companies inked new worldwide licensing deals covering publishing and recorded music.
In 2019, Proxima Media, owned by Ryan Kavanaugh (former head of twice-bankrupt studio Relativity Media) and Bobby Sarnevesht, bought a controlling stake in Triller, a TikTok-like video app.
In December, Triller announced plans to become a publicly traded company through a reverse merger with SeaChange International, a provider of video-streaming and ad technologies. The companies had claimed the value of the new entity, to be called “TrillerVerz Corp.,” would be approximately $5 billion. However, in June 2022, SeaChange and Triller mutually agreed to terminate the merger agreement, per a regulatory filing.
Research Calls I
- Upgrades:
- Calumet Specialty Products (CLMT) upgraded to Buy from Neutral at Goldman; tgt raised to $23
- Celestica (CLS) upgraded to Buy from Hold at Argus; tgt $14
- Essential Utilities (WTRG) upgraded to Buy from Hold at HSBC Securities; tgt raised to $57
- First Bancorp (FBNC) upgraded to Overweight from Neutral at Piper Sandler; tgt lowered to $47
- First Solar (FSLR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $136
- MGIC Investment (MTG) upgraded to Buy from Neutral at BofA Securities; tgt $18
- Radian Group (RDN) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $24
- Downgrades:
- 10x Genomics (TXG) downgraded to Sell from Neutral at Goldman; tgt lowered to $35
- Amcor (AMCR) downgraded to Underperform from Hold at Jefferies
- Analog Devices (ADI) downgraded to Hold from Buy at Needham
- Array Tech (ARRY) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $15
- Bed Bath & Beyond (BBBY) downgraded to Underperform from Neutral at Wedbush; tgt $5
- Brinker (EAT) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
- Clarus Corporation (CLAR) downgraded to Mkt Perform from Outperform at Raymond James
- DCP Midstream (DCP) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $38
- Elanco Animal Health (ELAN) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $22
- Enact Holdings (ACT) downgraded to Underperform from Neutral at BofA Securities; tgt $25
- Franklin BSP Realty Trust (FBRT) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
- Hawaiian Electric (HE) downgraded to Underperform from Neutral at BofA Securities; tgt $43
- Jack Henry (JKHY) downgraded to Neutral from Buy at DA Davidson; tgt $210
- Krispy Kreme, Inc. (DNUT) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $15
- Par Pacific (PARR) downgraded to Neutral from Buy at Goldman; tgt raised to $20
- PerkinElmer (PKI) downgraded to Hold from Buy at Stifel; tgt lowered to $170
- Principal Fincl (PFG) downgraded to Neutral from Outperform at Credit Suisse; tgt raised to $86
- Stronghold Digital Mining (SDIG) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $2.25
- United Rentals (URI) downgraded to Underperform from Mkt Perform at Bernstein; tgt lowered to $269
- Verizon (VZ) downgraded to Underperform from Market Perform at MoffettNathanson; tgt $41
- World Wrestling (WWE) downgraded to Neutral from Buy at Northcoast
- Wolverine (WWW) downgraded to Hold from Buy at Argus
- Others:
- Advanced Drainage Systems (WMS) initiated with a Buy at Deutsche Bank; tgt $182
- American Woodmark (AMWD) initiated with a Sell at Deutsche Bank; tgt $45
- Armstrong World Industries (AWI) initiated with a Buy at Deutsche Bank; tgt $125
- AZEK (AZEK) initiated with a Buy at Deutsche Bank; tgt $29
- Beacon Roofing Supply (BECN) initiated with a Buy at Deutsche Bank; tgt $90
- Builders FirstSource (BLDR) initiated with a Buy at Deutsche Bank; tgt $93
- Carvana (CVNA) initiated with a Hold at Argus
- Casey's General (CASY) initiated with an Outperform at Wolfe Research; tgt $228
- Core & Main (CNM) initiated with a Buy at Deutsche Bank; tgt $40
- Cummins (CMI) resumed with a Neutral at JP Morgan; tgt lowered to $245
- Enhabit Inc. (EHAB) initiated with a Neutral at Citigroup; tgt $17
- ESAB Corp. (ESAB) initiated with an Overweight at JP Morgan; tgt $55
- Fate Therapeutics (FATE) resumed with an Overweight at Wells Fargo; tgt $90
- Fortune Brands Home & Security (FBHS) initiated with a Buy at Deutsche Bank; tgt $100
- Freshpet (FRPT) initiated with an Overweight at Piper Sandler; tgt $69
- Hasbro (HAS) resumed with a Buy at BofA Securities; tgt $96
- Installed Building Products (IBP) initiated with a Hold at Deutsche Bank; tgt $108
- Iovance Biotherapeutics (IOVA) resumed with an Equal Weight at Wells Fargo; tgt $14
- Ivanhoe Electric (IE) initiated with a Neutral at JP Morgan; tgt $12
- JELD-WEN (JELD) initiated with a Hold at Deutsche Bank; tgt $15
- Karuna Therapeutics (KRTX) removed from Best Ideas List at Wedbush
- Masco (MAS) initiated with a Hold at Deutsche Bank; tgt $61
- Masonite International (DOOR) initiated with a Buy at Deutsche Bank; tgt $135
- Mohawk (MHK) initiated with a Hold at Deutsche Bank; tgt $122
- Mueller Water (MWA) initiated with a Hold at Deutsche Bank; tgt $12
- NuScale Power (SMR) initiated with a Buy at Guggenheim; tgt $18
- OneConnect Financial (OCFT) resumed with a Hold at HSBC Securities
- Owens Corning (OC) initiated with a Hold at Deutsche Bank; tgt $103
- PGT Inc. (PGTI) initiated with a Buy at Deutsche Bank; tgt $38
- Pool (POOL) initiated with a Hold at Deutsche Bank; tgt $431
- SiteOne Landscape Supply (SITE) initiated with a Buy at Deutsche Bank; tgt $189
- Sutro Biopharma (STRO) resumed with an Overweight at Wells Fargo; tgt $15
- TopBuild (BLD) initiated with a Hold at Deutsche Bank; tgt $236
- Trex (TREX) initiated with a Buy at Deutsche Bank; tgt $87
- Wabtec (WAB) initiated with an Outperform at Raymond James; tgt $103
- Watsco (WSO) initiated with a Hold at Deutsche Bank; tgt $311
- Watts Water Tech. (WTS) initiated with a Buy at Deutsche Bank; tgt $192
Gapping down
In reaction to earnings/guidance:
- KSS -8.7%, SQM -4%, AMCR -3.4%, SPTN -2.9%, MLCO -2.7%, EL -1.8%, TPR -0.8%
News:
- EAR -16% (supports new regulation on OTC hearing aids; believes its hearing aids are within the FDA's requirements)
- AXDX -13.7% (commences public offering)
- BBBY -11.1% (RC Ventures files to sell BBBY stake)
- HUT -5.7% (establishes at-the-market equity program)
- RGTI -2.5% (stock offering by selling shareholder)
- GME -2% (meme stocks lower on BBBY RC Ventures news)
- PHG -1.3% (to convene Extraordinary General Meeting of Shareholders to appoint Roy Jakobs as new President and CEO)