Check out the companies making headlines in midday trading.
Lordstown Motors — The electric vehicle stock sank roughly 12% after the company cut its guidance for production and year-end cash. Lordstown said it will need to raise more capital.
Shake Shack — Shares of the restaurant company jumped around 7% following a bullish call from Goldman Sachs. The firm upgraded the stock to a buy rating saying the recent pullback offers a chance for investors to pick up shares. “The company’s small size and unique footprint drive a lag in the company’s recovery from COVID, making it one of the last re-opening plays in the space,” Goldman said in a note to clients.
Moderna — The pharmaceutical stock edged about 2% higher midday after the company said its Covid-19 vaccine is 100% effective in teens. Moderna said it plans to ask the Food and Drug Administration to expand the emergency use of its Covid vaccine for teens early next month.
IAC/Interactive and Vimeo — IAC shares fell roughly 5% following Vimeo’s spinoff to IAC shareholders. Vimeo began trading on the Nasdaq today as a standalone public company, with Vimeo shares down about 16% in midday trading. The video platform debuted with a valuation of roughly $10 billion.
Canopy Growth — The cannabis stock rose about 6% after MKM Partners upgraded the stock to “buy” from “neutral.” MKM said sentiment surrounding the cannabis sector is low, making Canopy’s risk and reward “very favorable.”
Petco — Shares of the pet products retailer fell nearly 3% after the company announced a secondary stock offering of 22 million shares. The selling stockholder gave underwriters a 30-day option to purchase another 3.3 million shares. Petco will not receive any proceeds from the offering, the company said.
Coinbase — Shares of the cryptocurrency exchange rose about 5% after JPMorgan initiated coverage of the stock with an “overweight” rating. JPMorgan said the future of crypto is bright, despite recent swings in the price of bitcoin and other cryptocurrencies. The stock was also helped by a recovery in bitcoin prices.
— CNBC’s Pippa Stevens, Jesse Pound, Tanaya Macheel and Berkeley Lovelace Jr. contributed reporting
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