Check out the companies making headlines in midday trading.
Ulta Beauty — The cosmetics retailer’s shares dipped more than 3% after Guggenheim downgraded Ulta to neutral from buy. The Wall Street firm said it was concerned about profit margin uncertainty amid rising competitive pressure on digital platforms.
Starbucks — Shares of the coffee shop chain rose 2.8% after the stock was upgraded to buy from neutral by BTIG. The firm said in a note to clients that it expects an accelerated restaurant reopening and the new federal stimulus package will lead to increased earnings forecasts for Starbucks.
DraftKings — The betting company’s shares advanced more than 1% after DraftKings said it priced its new debt offering of $1.1 billion in convertible senior notes. The company had initially planned a $1 billion offering.
Nikola Corp. — The vehicle design company’s shares fell 6.5% after the company announced a $100 million common stock offering in a filing with the Securities and Exchange Commisssion. Nikola said proceeds will be invested in company infrastructure and general business purposes.
AstraZeneca — AstraZeneca shares rose 2.6% after a report said its Covid-19 vaccine will be recommended for people aged 65 and older in Canada. The CBC report came after several European countries decided to pause use of the vaccine amid concerns over its side effects. Both the World Health Organization and AstraZeneca say the vaccine is safe.
Avis Budget — Avis Budget, meanwhile, lost 7.6% midday after Morgan Stanley downgraded the equity to “equal-weight” from “overweight.”
– CNBC’s Maggie Fitzgerald, Jesse Pound, Pippa Stevens and Rich Mendez contributed reporting.