- While state governments in the U.S. have largely loosened restrictions on gambling in recent years, there are reports that Macau might be taking the opposite approach. Speculation of stepped-up oversight in that Chinese market sent Wynn Resorts (NASDAQ:WYNN), Melco Resorts & Entertainment (NASDAQ:MLCO) and Las Vegas Sands (NYSE:LVS) all reeling on Tuesday.
- Looking at some of the other notable decliners on the session, RedHill Biopharma (NASDAQ:RDHL) lost nearly a third of its value following the release of disappointing clinical trial data.
- Recent IPOs Traeger (NYSE:COOK) and Weber Inc. (NYSE:WEBR) also suffered declines. WEBR set a new closing low on the session, while COOK narrowly avoided a similar fate.
- There were some bright spots on Tuesday. FuelCell Energy (NASDAQ:FCEL) posted one of the day's best performances after the release of its quarterly results. In addition, a well-received investor day sent Crocs (NASDAQ:CROX) to a fresh 52-week high.
Sector In Focus
- The start of the football season has put gambling stocks in focus, with many investors keying in on the spreading legalization around the U.S. However, betting represents an international pursuit and Tuesday saw a step back for companies with a heavy presence in China's gambling mecca of Macau.
- Reports that the Macau government is considering increased supervision of casinos sparked a sell-off in stocks tied to the region. WYNN dropped nearly 11%, LVS dipped 10% and MLCO fell almost 6%.
- Meanwhile, casino operators in the area already have COVID-19 worries weighing on their results. This comes amid an outbreak of the virus in China's Fujian province.
Standout Gainer
- FuelCell Energy (FCEL) skyrocketed on Tuesday in the wake of its quarterly report, spiking nearly 15% on the session.
- The gains came after the company reported a loss for its latest quarter that narrowed from last year and beat the result predicted by market analysts. Revenues advanced 43% from last year to reach $26.8M.
- The top line was bolstered by strength in FCEL's service agreements and licensing revenues, which more than doubled from last year. The company also significantly expanded its cash holdings compared to a year ago.
- Thanks to the strong financial figures, FCEL climbed 82 cents on the session to close at $6.44.
- Shares had been mired in a range near their 2021 lows for most of the past month. Bit with Tuesday's gains, FCEL notched its highest close since mid-August.
Standout Loser
- RedHill Biopharma (RDHL) recorded one of Tuesday's biggest percentage declines as the release of clinical-trial data prompted a nearly 33% drop in the stock.
- RDHL said its opaganib product failed to reach the primary endpoint in a Phase 2/3 study in patients hospitalized with severe COVID-19 pneumonia. The company said it was disappointed by the result, but would talk to the FDA about the data to see if there was a way forward for the product.
- "We do see a trend that needs to be investigated that opaganib may provide benefit to patients earlier in the course of the disease,” CEO Dror Ben Asher said of the study's findings.
- Still, RDHL dropped $2.41 on Tuesday to close at $4.97.
- Shares had previously posted a massive upswing in August's second half, reaching levels not seen since February. However, the stock has suffered a string of declines over the past week, which only intensified with Tuesday's retreat.
- RDHL set an intraday 52-week low of $4.65 during the day and is now 52% off the multi-month highs it set about two weeks ago.
Notable New High
- Crocs (CROX) jumped to an all-time peak on Tuesday, driven higher by an optimistic presentation at the popular shoe brand's investor day.
- At the event, CROX management predicted revenues of over $5B by 2026, with the company focusing investments on digital expansion and development in Asia. CROX projected long-term adjusted operating margins of around 26%.
- The company's stock jumped about 8.5% on Tuesday to finish at $149.38. That took CROX above a trading range that has bound it for the past month.
- With the advance, shares also reached a new intraday 52-week high of $157.80. All told, CROX is now up about 76% over the past six months.
Notable New Low
- Two grilling companies. Two recent IPOs. Two stocks challenging their post-IPO lows.
- Traeger (COOK) and Weber Inc. (WEBR) both suffered notable declines, with COOK dropping about 4% and WEBR retreating by nearly 6%.
- In addition, WEBR broke below its IPO price and recorded its lowest finish since coming public. COOK threatened to notch a new closing low as well, but recovered enough by the close to miss that distinction by a fractional amount.
- Shares of the makers of grilling equipment have lost ground so far in September amid fears about higher costs and that the cook-at-home trend might reverse in a post-COVID environment.
- WEBR dropped $2.58 on the session to end at $13.92. With the retreat, the stock finished below its IPO price and marked its lowest close since coming public.
- WEBR made its trading debut in early August in an offering priced at $14 per share. The stock rose in its first session and added to gains after that, eventually touching a high of $20.44.
- However, shares came off that peak in mid-August and have seen further selling over the past few days.
- COOK has had a similar story. The stock came public in late July in an IPO priced at $18 per share.
- The stock closed higher by 22% in its first trading day and continued to stack gains over the next week and a half, eventually touching a high of $32.59. But shares retreated from there, coming off earlier highs in mid-August.
- COOK saw renewed selling pressure in the past week following the release of its first post-IPO quarterly report. The company disclosed a Q2 net loss, although it recorded an adjusted profit excluding one-time items, which topped expectations.
- Still, COOK slipped 95 cents on Tuesday, finishing the session at $22.13.
- However, shares remain well above the firm's IPO price. COOK closed 13 cents above the final price recorded on its first trading day -- thus far, its lowest finish as a public company.
- For more of the day's biggest winners and losers, turn to SA's On The Move section.