Check out the companies making headlines in midday trading.
howl – Shares of the online rating company rose more than 9% after activist investor TCS Capital Management took a stake in the company and said in an open letter that the company should explore strategic alternatives, including a sale. TCS Capital built a more than 4% stake in Yelp and became one of the top five shareholders in the company. According to TCS, Yelp is “startlingly undervalued” and could be sold to a private equity buyer for at least $70 per share, a premium of more than 120%.
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AutoZone — The car dealer’s shares fell more than 5% after missing sales expectations for the fiscal third quarter. AutoZone generated revenue of $4.09 billion, down from the consensus estimate of $4.12 billion from analysts polled by Refinitiv. Earnings per share of $34.12 beat analysts’ forecast of $31.51. Inventory rose 7.4% year over year.
Lowe’s company – The home improvement retailer rose 2.8% after its first-quarter earnings report beat analysts’ expectations. However, the company lowered its outlook for the full year.
chevrons – The San Ramon, California-based energy producer gained 3.1% in midday trade. HSBC upgraded Chevron to a buy from a hold earlier Tuesday, citing a possible recovery in oil prices.
Zoom video communication — Shares plunged more than 7% after the release of the video conferencing stock’s first-quarter earnings report. While the company beat Wall Street expectations on both earnings per share and revenue, Zoom’s expectations for the current quarter were only in line with expectations, according to Refinitiv.
Broadcom – Broadcom shares rose about 2% after Apple announced a multi-billion dollar chip deal with Broadcom. The multi-year plan is based on the iPhone maker’s pledge to inject $430 billion into the US economy.
BJ’s Wholesale – Shares fell 6.4% after the wholesale club’s quarterly sales came in marginally worse than estimates by analysts polled by Refinitiv. Comparable club sales without petrol were also somewhat weaker than expected.
peloton – Shares rose 3% after the connected fitness equipment company best known for its exercise bikes unveiled a new marketing strategy to attract new customers. The brand relaunch, which comes at a time when Peloton is trying to transform itself, includes a new pricing structure for its digital app.
modern micro devices — Shares of the semiconductor company rose 1.7% to hit a fresh 52-week high. Bank of America reiterated in a note Tuesday that AMD would buy the chipmaker, saying AMD is “on the brink of another big opportunity” arising from the demand for artificial intelligence.
Chimerix – Biotech stock rose 1.4% after Baird began research coverage with an outperform rating. The company said it was optimistic about a “first-in-class compound” for treating tumors.
Lifecore Biomedical — Stock rose 60% after Lifecore announced fresh $150 million in financing, repayment of outstanding term loans and a new supply agreement.
Integra Life Sciences — Shares fell 15% after the medical technology company issued weak guidance for the second quarter. The company said earnings per share should reach 55 to 59 cents, down from the previous range of 75 to 79 cents and the consensus estimate of 77 cents from analysts polled by FactSet. According to Integra, revenue is expected to be between $372 million and $376 million, down from the previous guidance of $396 million to $400 million and the FactSet consensus of $398.1 million.
Quanterix, Countless genetics – Health technology stocks rose 17% and 15%, respectively, after Goldman Sachs upgraded shares from neutral to buy. The bank said Quanterix had better operating leverage than the market was expecting. And it said Myriad has a differentiated financial profile that is currently discounted.
snowflake – Shares rose 2.1% ahead of the cloud computing stock’s earnings report out Wednesday. Wells Fargo was bullish on corporate earnings and reiterated an overweight rating.
Intelligent CCC solutions – CCC Intelligent Solutions shares gained 4.6% after being upgraded from inline to outperform by Evercore ISI. The company said the software service provider to the property-casualty insurance sector was “on an ‘AI journey’ long before it became the trend of the day.”
Spotify – The music-streaming service rose 1.3% after Guggenheim reiterated a buy recommendation, noting that usage trends remain strong and can help Spotify fuel a healthy growth cycle.
Regional Banks – Several regional banks were higher on Tuesday. Closely followed PacWest jumped 16.5% while Comerica And Zion 6.9% and 8.8% respectively.
– CNBC’s Hakyung Kim, Michelle Fox, Samantha Subin, Brian Evans, Yun Li, Sarah Min and Michael Bloom contributed coverage