Andrew Harrer | Bloomberg | Getty Images
Check out the companies making headlines in midday trading.
Tilray, Canopy Growth, Aphria, Aurora Cannabis — Several cannabis stocks dropped Thursday, giving up some of the sharp gains from earlier this week as Reddit traders piled into the names. Shares of Tilray fell more than 40% after rallying 50% on Wednesday. Canopy Growth is down 21%, Aphria is down 31% and Aurora Cannabis is down more than 21%.
Bank of New York Mellon — Shares of BNY Mellon rose 2.7% in midday trading after it announced that it will begin financing bitcoin and other digital currencies. The announcement represents a significant step by one of the country’s most prominent custodian banks to validate the banking and financing of bitcoin and other digital currencies.
Zillow — Shares of the real estate tech company jumped more than 15% after a stronger-than-expected earnings report. Zillow reported 41 cents in earnings per share and $789 million in revenue for the fourth quarter. Analysts surveyed by Refinitiv were expecting 27 cents per share and $741 million. Citi upgraded the stock to buy from neutral following the report.
Kraft Heinz — The food stock rose 5.6% after Heinz beat estimates on the top and bottom lines for the fourth quarter. The company also announced that it was selling its nuts business to Hormel Foods for more than $3 billion in cash. The deal includes the Planters and Corn Nut brands.
Under Armour — Shares of the retailer jumped 3% after Piper Sandler upgraded the stock to an overweight rating. “Shares of UAA remain the ‘most unloved’ stock in our coverage,” the firm said in a note to clients. The firm also doubled its price target on the stock from $14 to $28. The new target is roughly 25% above where shares closed on Wednesday.
Simon Property Group — Shares of the mall operator gained more than 3% after Morgan Stanley upgraded the stock to an overweight rating. “While retail faces accelerating secular challenges, we see multiple drivers of earnings growth for SPG,” the firm wrote in a note to clients. Morgan Stanley has a $125 target on the stock, which is 18% above Wednesday’s closing price.
Spirit Airlines — The discount airline’s shares dropped more than 8% after reporting disappointing revenue for the fourth quarter. Seaport also downgraded Spirit Airlines to neutral from buy.
Generac — Shares of the power system company surged 11% after beating on the top and bottom lines of quarterly earnings. Generac earned $1.97 per share on revenue of $761 million. Wall Street expected earned of $1.96 per share on revenue of $731 million, according to Refinitiv.
Virgin Galactic — Shares of Virgin Galactic climbed more than 7% in trading on Thursday after an FAA notice indicated the company’s next spaceflight attempt remains on track for as early as Saturday. An FAA notice posted on Thursday said that airspace around Virgin Galactic’s base of operations at Spaceport America in New Mexico would be restricted for space operations from Saturday at 9 a.m. ET through Sunday at 6 p.m. ET.
Restaurant Brands — Shares of Restaurant Brands sunk more than 4% after reporting disappointing earnings. Restaurant Brands reported earnings of 53 cents per share, compared to analysts estimates of 65 cents per share, according to Refinitiv.
Tempur Sealy — Shares of the mattress maker were up 10% by midday after the company reported earnings of 67 cents per share for the previous quarter, beating a Refinitiv estimate by 15 cents. The company also said it expects sales growth to range between 15% and 20% in 2021.
MGM Resorts — The casino operator’s stock dropped more than 3% after disappointing quarterly numbers. MGM reported a 53% decline in revenue in the fourth quarter, the sales number also came in below a FactSet estimate. It posted a quarterly loss of 90 cents, slightly better than expectations, according to FactSet.
Zynga — Shares of the mobile game developer were up close to 9% by midday after CEO Frank Gibeau said the company was open to receiving a acquisition offer. He added, however, Zynga was not actively looking for a buyout. The company also reported a 61% surge in net bookings for the previous quarter, beating analysts expectations.
Sonos — The maker of high-end smart speakers saw its shares soaring more than 16% after a strong earnings report. Sonos beat estimates on both the top and bottom lines in its latest quarter, according to Refinitiv. The company also raised its full year revenue guidance.
— with reporting from CNBC’s Yun Li, Jesse Pound, Tom Franck, Pippa Stevens and Richard Mendez.