With the S&P 500 closing up 0.8% at 2,251.84 and the Nasdaq closing up 2.5% at 10,767.09, many investors are wondering how stocks keep rising despite the major recession in the time of a COVID-19 pandemic. It turns out that the new economy is creating many new winners, and it is helping to destroy many companies that were unable to adapt or adjust.
With the arrival of earnings season and with other corporate announcements, 24/7 Wall St. has tracked many big movers in Monday’s after-hours session. We have provided some brief insight around the news on nine stocks making moves on news in the after-hours session. We have compared these to past trading ranges and added additional color as well.
These nine stocks made big moves, up or down, after the close on Monday, July 20, 2020. As a reminder, after-hours moves can be exaggerated due to a lack of liquidity and the actual share prices the following day may be considerably higher or lower as more market participants are there.
Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) closed up 0.8% at $55.42 at Monday’s close, but its late-stage study of pimavanserin for the treatment of major depressive disorder failed to achieve primary endpoint in a study of nearly 300 people. That had shares down about 10% at $50.11 in the after-hours. Unfortunately, that means that $860 million will be shaved off of its $8.6 billion market cap if these levels hold. Acadia has traded as low as $21.56 and as high as $58.72 in the last year. It was previously a favorite stock in a Canaccord Genuity analyst call.
CytoSorbents Corp. (NASDAQ: CTSO) closed up almost 25 at $11.55 on Monday, but the shares were last seen down 9% at $10.50 after the company reported that its preliminary record total quarterly revenue was $9.8 million with product sales of $9.5 million. The company cited demand for CytoSorb as a treatment of cytokine storm in COVID-19 infection and other illnesses. Its market cap was only $418 million at the close, and its shares hit a 52-week high of $11.74 in Monday’s regular trading session. CytoSorbents is still up from a 52-week low of $3.49. While profit-taking and “sell the news” may be the main issue here and already might have been expected, the company also announced a $40 million stock sale that put pressure on the shares.
Genworth Financial Inc. (NYSE: GNW) announced that it has reached a settlement agreement with AXA over a dispute around payment protection insurance mis-selling losses that were incurred from “mis-selling complaints” over insurance that was underwritten by two companies AXA acquired from Genworth back in 2015. Genworth shares were last seen up 2% at $2.18 in the after-hours session after closing down 2.3% at $2.13 on Monday.
Hibbett Sports Inc. (NASDAQ: HIBB) closed down 3.46% at $22.49 on Monday, but that was before a business update for the second quarter showed that online orders were driving its same-store sales up over 70% for the second quarter and should be up 20% for the second half. Its shares added 28% to $28.77 in the after-hours for a gain of nearly $100 million in market cap. Hibbett’s 52-week range is $733 to $30.98.
International Business Machines Corp. (NYSE: IBM) closed up 1% at $126.37 ahead of earnings. For a company that rarely has good news before, during or after earnings, IBM managed to exceed revenues despite a continued decline on a boost from cloud demand that more than offset revenue pressures from the coronavirus pandemic. IBM was last seen up 5.8% at $133.69, and its 52-week range is $90.56 to $158.75. If a 5.8% gain will hold on Tuesday, that’s a gain of about $6 billion in its market cap.
Limelight Networks Inc. (NASDAQ: LLNW) closed up 7.3% at $7.65 on Monday, but the company reported that second-quarter revenues rose 28% to $58.5 million, with only a negative $0.1 million currency impact. Despite that growth and despite calling for strength in 2020 demand, Limelight was down almost 5% at $7.22 after about 45 minutes of after-hours trading. Its market cap was $915 million and its shares have been in a $2.20 to $8.19 in the past year.
New Age Beverages Corp. (NASDAQ: NBEV) shares closed up 4.8% at $1.74 on Monday, with a 52-week range of $0.98 to $3.98 and with a $161 million market cap. While it’s impossible to know if the gains will shrink or grow even further, the stock opened up after a trading halt at 4:25 p.m. and was last seen trading up over 75% at $3.05. The news: it has entered into a definitive agreement to acquire ARIIX with four additional companies in the e-commerce and direct selling channels, and the newco will be a global firm that the company’s announcement estimated its pro forma revenues above $500 million across more than 75 countries. Its 2019 revenue was $253 million, up from $52 million in 2018.
Qiwi PLC (NASDAQ: QIWI) rose 4.4% to $19.19 in regular trading on Monday, but the stock sold off 3% to $18.60 after announcing that it has launched an underwritten secondary public offering of 6,800,870 its Class B Shares (represented by American depositary shares) from certain shareholders. Those same selling holders have also granted the underwriters a 30-day option to purchase up to an additional 1,020,130 ADSs. Qiwi had a $1.2 billion market cap at the close of the day.
Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) saw more than 200 million shares trade on Monday with a 91% gain to $1.5 after a prior July 16 announcement that it had entered into a research collaboration and option agreement with Columbia University to study immune responses to COVID-19 in healthy volunteers who have recovered from COVID-19 or were asymptomatic. With exponential volume spikes like this, after-hours moves can easily be seen and its shares had seen a 7.1% drop to $1.44 after the close. The 52-week range of $0.39 to $5.90 should show how volatile the stock has been.