An Olive Garden restaurant in Times Square in New York.
Richard Levine | Corbis | Getty Images
Here are the stocks making headlines in midday trading Thursday.
Novavax – Shares of the drug maker tumbled 13.3% after JPMorgan downgraded Novavax to underweight from neutral. The banks also slashed its price target on the stock, citing dwindling demand for Covid-19 vaccines.
Darden Restaurants – Shares of Olive Garden’s parent company fell more than 4% after Darden’s fiscal first-quarter results showed lighter-than-expected revenue. The company reported $ 1.56 in earnings per share on $ 2.45 billion of revenue. Analysts surveyed by Refinitiv had penciled in $ 1.56 per share on $ 2.47 billion of revenue. Same store sales at Olive Garden rose just 2% year over year.
Eli Lilly – The pharmaceutical stock climbed 4.9% after UBS upgraded Eli Lilly to buy from neutral. UBS said that Eli Lily’s new weight loss product could be “the biggest drug ever.”
KB Home – Shares of homebuilder KB Home slipped 5.1% after the company reported earnings that disappointed Wall Street’s revenue expectations. The company reported earnings of $ 2.86 per share on $ 1.85 billion in revenue, where analysts surveyed by Refinitiv expected earnings of $ 2.67 per share and $ 1.87 billion in revenue.
Lennar – Shares of Lennar rose 2% after the company reported mixed quarterly results on Wednesday. The home construction company reported earnings of $ 5.03 per share and $ 8.93 in revenue, where analysts surveyed by Refinitiv expected $ 4.88 in earnings on $ 9 billion in revenue. KeyBanc said in a note to clients that Lennar “optimizes asset turns” better than competitors even as housing demand slows.
FactSet – Shares of the financial data company slumped more than 8% after FactSet’s fourth-quarter earnings came in short of expectations. The company reported $ 3.13 in adjusted earnings per share, below the $ 3.20 anticipated by analysts, according to Refinitiv. Revenue did beat expectations by $ 12 million, coming in at $ 499 million. FactSet’s operating margin shrank year over year.
Block – The payments platform tumbled 5.9% after Mizuho downgraded shares to neutral from buy and slashed its price target to $ 57 from $ 125, saying Block’s bitcoin focus is causing the company to lose focus on its main business.
Steelcase – Shares dropped 10% after the furniture company announced it will cut 180 salaried positions in the third quarter. In a statement, Steelcase CFO Dave Sylvester cited “recent volume decline in our incoming orders and lower than expected return-to-office trends in the Americas.” The company also reported its second-quarter results, saying organic order growth in the second quarter declined in the Asia Pacific region even as total revenue grew.
Trip.com – The US-traded shares of the Chinese travel company rose 4.8% despite Trip.com reporting shrinking revenue in the second quarter. Trip.com did report a much smaller net loss than in the first quarter. CEO Jane Sun said that bookings rebounded at the end of the second quarter and into the third.
Deutsche Bank – The bank’s shares rose 3.1%. CFO James von Moltke was reported saying at a conference Thursday that the bank will need to look at 2023 “with caution.” Dow Jones reported that company management also confirmed its full-year revenue guidance.
Virtu Financial – The market maker climbed more than 8.5% on a report that the Securities and Exchange Commission won’t ban the Wall Street practice of “payment for order flow.”
Alcoa – The aluminum maker’s stock fell 4.8% after Wolfe Research downgraded Alcoa to peer perform from outperform, citing the macro pressures on the commodity markets.
Li Auto – The stock jumped 4.9% after the Chinese electric vehicle manufacturer announced an “early launch” of Li L8, a smart SUV model. Li Auto is hosting a launch event on September 30, and plans to start delivery in early November.
– CNBC’s Scott Schnipper, Sarah Min, Samantha Subin, Alex Harring and Carmen Reinecke contributed to this report.