Market Insider | Biggest Moves Premarket: Stocks making the biggest moves premarket: AutoNation, Caterpillar, Boeing, Beyond Meat & more
AutoNation – AutoNation will return $77 million it received in forgivable loans from the Paycheck Protection Program. The car retailer said it had intended to use the funds entirely for payroll, but decided to return the money after the Small Business Administration issued new guidelines for the program.
Boeing – Boeing has pulled out of its deal to pay $4.2 billion for an 80% stake in the commercial jet business of Brazil’s Embraer. Boeing said the two sides had failed to agree on final terms by a deadline, but Embraer accused Boeing of wrongfully terminating the deal.
Deutsche Bank – Deutsche Bank reported a preliminary first quarter profit, surprising analysts who had been predicting a loss for the German bank. Deutsche Bank did say it might miss its capital requirement targets, due to extending more credit in light of the coronavirus outbreak as well as a jump in loan defaults.
Diamond Offshore – Diamond Offshore filed for Chapter 11 bankruptcy protection, after saying demand for its drilling services had “dropped precipitously” amid the significant drop in oil demand. Diamond Offshore is 53% owned by Loews.
Regeneron Pharmaceuticals, Sanofi – The drug makers shut down part of their study of the arthritis drug Kevzara as a Covid-19 treatment. The companies say the drug did not benefit hospitalized Covid-19 patients who were not on ventilators. The study, however, will continue for patients who do require a ventilator or other oxygen support.
Caterpillar – The heavy equipment maker’s stock was downgraded to “underweight” from “equal-weight” at Morgan Stanley, which sees a risk from a possible multi-year downturn in non-residential construction, among other factors.
Check Point Software – The cybersecurity company reported adjusted quarterly earnings of $1.42 per share, 4 cents above estimates, with revenue also beating Wall Street forecasts. The company’s results were boosted by increased demand for network security as more people work from home during the coronavirus outbreak.
Tesla – Tesla has asked dozens of workers to return to work at its Fremont, California, plant on Wednesday, according to internal memos seen by CNBC. That comes even though health orders related to the Covid-19 outbreak have not yet been changed or relaxed.
Revlon – Revlon has lined up an additional $100 million in financing to help it navigate financial difficulties prompted by the coronavirus outbreak. However, Reuters reports that Revlon’s overall restructuring plan is running into objections from some of the cosmetics maker’s lenders, with Revlon needing votes from holders of more than half of its outstanding debt to move forward.
Hertz Global – Hertz was downgraded to “underweight” from “equal weight” at Barclays, cutting the price target to $2 per share from $10. Barclays is concerned about a capital call by investors in the car rental company.
Wayfair – Wayfair was downgraded to “hold” from “buy” at Stifel Nicolaus, citing valuation for the online home goods seller’s shares. Wayfair shares dipped as low as $21.70 on March 19, before surging and closing Friday at $122.41 per share.
Armstrong World Industries – The designer of commercial and residential wall and ceiling solutions missed estimates by 1 cent with adjusted quarterly earnings of $1.10 per share, with revenue slightly below forecasts as well. Armstrong is withdrawing 2020 financial guidance as the coronavirus pandemic slows demand, and said it is reducing spending, suspending hiring, and suspending its share repurchase program.
Beyond Meat – UBS downgraded the plant-based burger maker’s stock to “sell” from “neutral”, noting the stock’s 142% jump from its March low and saying that the rebound does not price in the impact of the economic risks related to Covid-19.