Hot Stocks: DNUT downgrade; EGHT acquisition; EMKR, GIII move on earnings; VRTX positive data
Dec. 01, 2021 12:53 PM ETKrispy Kreme, Inc. (DNUT)VRTX, EMKR, GIII, EGHTBy: Brian Stewart, SA News Editor2 Comments
- A bearish analyst comment put pressure on Krispy Kreme (NASDAQ:DNUT) during midday trading on Wednesday, sending the donut maker sharply lower on concerns about inflation.
- 8x8 (NYSE:EGHT) was another notable intraday loser. Shares dropped after an acquisition included stock as part of the purchase price, raising worries about dilution.
- Earnings news continued to provide a prime catalyst in midday action. EMCORE (NASDAQ:EMKR) fell in the wake of its quarterly report, while G-III Apparel (NASDAQ:GIII) got a boost from its financial figures.
- Elsewhere, Vertex (NASDAQ:VRTX) rallied after it released positive clinical trial data.
- Krispy Kreme (DNUT) dropped more than 7% after Goldman Sachs issued a Sell rating. The firm, which previously rated DNUT at Neutral, argued that the donut maker faced rising cost pressures at a time when evidence points to limited pricing power for the firm.
- 8x8 (EGHT) also suffered a midday slide, falling nearly 8% on news of an acquisition. EGHT announced a deal to purchase enterprise cloud communications solutions provider Fuze for about $250M.
- The purchase price for the deal consists of about $130M in cash and $120M in EGHT shares. The stock portion of the purchase likely raised concerns about dilution for current shareholders.
- Earnings news put pressure on shares of EMCORE (EMKR). The company beat expectations with its latest quarterly figures, turning to a profit after a loss last year and recording year-over-year revenue growth of 31%.
- However, EMKR's earnings and margins slipped from their levels in the prior quarter. Shares retreated nearly 6% in the wake of the earnings report.
- G-III Apparel (GIII) exceeded expectations with its quarterly earnings, helped by nearly 23% sales growth. Meanwhile, the company's CEO said the apparel maker is "well-positioned for the holiday season."
- Bolstered by the earnings report, GIII posted a midday advance of nearly 4%.
- Clinical trial results gave a lift to Vertex (VRTX). The stock rose 8% after releasing Phase 2 data on its VX-147 product for use in focal glomerular sclerosis.
- For more of the day's biggest movers, turn to SA's On The Move section.