Hot Stocks: MRCY, MTCH drop on earnings news; PING jumps 60% on takeover deal; AAWW surges

Aug. 03, 2022 5:38 PM ETPing Identity Holding Corp. (PING)MRCY, AAWW, APO, MTCHBy: Brian Stewart, SA News Editor1 Comment

Financial stock market graph. Selective focus.

Diego Thomazini

With investors reacting positively to the latest round of earnings reports, stocks rallied on Wednesday, led by a 2.6% advance in the Nasdaq. With the rise, Wall Street renewed last week's upswing, largely erasing the profit-taking that took place early this week.

Ping Identity (NYSE:PING) ranked among the day's standout gainers. Shares skyrocketed more than 60% after the company agreed to a buyout deal.

M&A headlines also encouraged buying in Atlas Air Worldwide (AAWW). The stock surged on reports that it will soon reach a takeover agreement.

Looking at some of the day's standout decliners, Mercury Systems (MRCY) and Match Group (MTCH) both suffered double-digit percentage declines following the release of their quarterly updates.

Standout Gainer

A takeover deal sparked a massive jump in Ping Identity (PING). The stock soared 61% after reaching a deal to be acquired by private equity firm Thoma Bravo.

Under the deal, shareholders of the company, which makes software to prevent fraud, will receive $28.50 per share, leading to a total value of $2.8B.

PING finished Wednesday's trading at $28.08, an advance of $10.62 on the day. The spike took the stock to its highest close since April.

Standout Loser

Mercury Systems (MRCY) plunged more than 13% after the company released disappointing quarterly results.

The defense electronics company reported a Q4 profit that rose from last year but came in well below the amount that analysts were predicting. Revenue also showed disappointing growth. The top line rose almost 16% to $290M -- about $18M below the market consensus.

Looking ahead, MRCY issued a disappointing earnings forecast. For Q1, the company targeted non-GAAP EPS between $0.19 and $0.23. Analysts were looking for $0.26.

Following the results, MRCY plunged to an intraday 52-week low of $44.04. Shares moderated from there but still ended at $49.81, a decline of $7.67 on the session.

While the firm hit a 52-week low on an intraday basis, it finished above a closing low of $45.31 reached last September.

Notable New High

Atlas Air Worldwide (AAWW) jumped almost 11% on reports that it is likely to reach a takeover deal with an investor group led by Apollo Global Management (APO). The rally took the stock to a new 52-week high.

According to Bloomberg, the potential agreement would value the airfreight company at $102.50 per share. This equates to a total purchase price of about $3.2B.

Based on the reports, AAWW jumped $9.41 to close at $96.78. During the session, the stock reached an intraday 52-week high of $97.67.

Shares have been rising since July, when they set a 52-week low of $58.70. AAWW has surged nearly 65% since that nadir.

Notable New Low

The release of quarterly results prompted selling in Match Group (MTCH), sending shares of the online dating app to a new 52-week low. The stock finished lower by 18%.

The company reported an operating loss, dragged down by an impairment charge related to its acquisition of Hyperconnect. On an adjusted basis, operating income rose 9% from last year. However, revenue growth failed to beat expectations, rising 12% from last year to almost $795M.

Moreover, the firm predicted "muted top-line growth" in the second half of the year. Specifically, MTCH forecast Q3 revenue between $790M and $800M, below analysts' target of $877M.

For more of the day's biggest winners and losers, head over to Seeking Alpha's On The Move section.

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