Take a look at the companies grabbing attention prior to the market opening.
Discover Financial Services — Following the release of its fourth-quarter results, the financial services company witnessed a decrease of over 7% as the results showed a combination of both positive and negative factors.
– Fastenal, the industrial supplies company, saw a 4% increase in stock after surpassing analyst expectations with its fourth-quarter earnings. Fastenal reported earnings of 46 cents per share on revenue of $1.76 billion, surpassing the expected 45 cents per share on $1.75 billion, according to FactSet.
– Microchip Technology, the tech manufacturer, experienced a 4% rise in shares following an upgrade to “outperform” from “peer perform” by Wolfe Research. Analyst Chris Caso stated that recent actions have reduced the stock’s risk heading into F3Q results.
– Humana, the health insurance company, faced a loss of over 14% after providing guidance for full-year 2023 adjusted earnings that fell below expectations. The revised guidance of $26.09 per share was lower than both the previous guidance of at least $28.26 and FactSet’s estimate of $28.29.
– The beleaguered fuel cell company Plug Power suffered a nearly 15% drop in shares after Morgan Stanley reiterated its underweight rating and $3 price target. Plug is expected to utilize a substantial portion of its recently announced $1 billion at-the-market equity program.
– Alcoa, the aluminum producer, experienced minimal changes in premarket trading after reporting its fourth-quarter results. The company reported a loss of 56 cents per share (excluding items), which was an improvement from the previous year. Revenue was in line with expectations at $2.6 billion.
– Hertz, the automotive rental company, saw a 6% increase in stock following an upgrade to “overweight” by Morgan Stanley. Analyst Adam Jonas praised Hertz’s decision to sell off electric vehicles from its fleet, predicting a positive impact on the stock.
– Apple witnessed a rise of over 2% in share value after Bank of America upgraded the tech giant to “buy.” The bank’s price target indicated a more than 20% upside, attributing the change to a rebound in iPhone sales fueled by AI.
– Spirit Airlines, the budget airline, experienced a 5% decline in stock due to ongoing repercussions from the blocked proposed merger with JetBlue. Citi downgraded Spirit to “sell” from “neutral” and reduced its price target, citing the failed deal. The downgrade suggests a 35% downside from Wednesday’s close. Spirit shares have plummeted around 60% week-to-date.
– Alaska Air Group witnessed a premarket increase of about 1% as the company aimed to recover from losses following a fuselage incident on a Boeing 737-9 MAX plane. Shares have dropped nearly 14% this year. The Federal Aviation Administration stated progress in its inspections of Boeing 737-9 MAX planes on Wednesday.
– Grab Holdings, the Singapore-based food delivery and ride-hailing app, witnessed a more than 3% increase in shares following an upgrade to “overweight” by JPMorgan. Analyst Ranjan Sharma highlighted improving delivery margins and an attractive valuation as reasons for the upgrade.
Source (CNBC)
