KRTX - Hot Stocks: BBBY leads meme stocks higher; KRTX surges 72%; TSN drops on earnings; CYBE jumps to 52-week high

The major U.S. equity averages finished Monday's session with a mixed performance, continuing the uncertainty that marked most of last week. Weakness in semiconductor stocks weighed on the market.

Breaking out of the lackluster trading, a handful of high-profile meme stocks showed notable gains. With chatter about short squeezes, Bed Bath & Beyond ( BBBY ), AMC ( AMC ) and Gamestop ( GME ) all finished sharply higher.

Karuna Therapeutics ( NASDAQ: KRTX ) represented another standout gainer. Shares surged more than 70% on strong clinical data. Meanwhile, a takeover deal sent CyberOptics ( CYBE ) to a new high.

On the other side of the spectrum, Tyson Foods ( TSN ) endured selling pressure after issuing a disappointing quarterly report. At the same time, Medifast ( MED ) added to recent earnings-related weakness to set a new 52-week low.

Sector In Focus

A recent surge in Bed Bath & Beyond ( BBBY ), triggered by an apparent short squeeze , sent a wave of gains among other meme stocks, as the specter of other similar attacks on short sellers prompted many well-known stocks to jump.

BBBY rose another 40% on Monday, following a nearly 33% advance last Friday. This marked the ninth consecutive day of gains. The stock has advanced about 148% over that time.

Meanwhile, AMC ( AMC ) and Gamestop ( GME ) both soared more than 8% during the session.

Standout Gainer

Karuna Therapeutics ( KRTX ) surged 72% after reporting favorable results from a late-stage clinical trial of its experimental schizophrenia therapy.

The company reported that its KarXT product met the primary endpoint of a Phase 3 trial. KarXT is being studied as a treatment of adults with schizophrenia.

Bolstered by the data, KRTX finished Monday's action at $241.19, an advance of $100.83 on the day. Shares also touched an intraday 52-week high of $245.

Standout Loser

Tyson Foods ( TSN ) lost ground following the release of disappointing earnings , as supply constraints and higher labor costs cut into the bottom line. The stock dropped 8%.

The chicken and beef producer reported a Q3 profit that came in below the amount that analysts had predicted. This came despite 8% revenue growth, with the top line total of $13.5B exceeding experts' consensus.

After a choppy start to the year, shares retreated from April to July before rebounding ahead of its earnings report. Monday's drop took the stock to its lowest level of 2022.

Notable New High

News of a takeover deal sent CyberOptics ( CYBE ) sharply higher. The stock jumped 29% to set a new 52-week high.

The rally came after the developer of high-precision 3D optical sensing technology agreed to be acquired by Nordson ( NDSN ) for $54 per share in cash. The transaction is valued at $380M, net of cash acquired.

On the news, CYBE jumped $11.93 to close at $53.03. During the session, the stock reached an intraday 52-week high of $53.14.

Shares reached a 52-week low of $30.98 in early July. The stock has been rising since, with Monday's advance accelerating the climb. In total, CYBE has risen 20% in 2022.

Notable New Low

Medifast ( MED ) pushed to another new low on Monday, continuing a decline that began late last week in the wake of its latest quarterly report . The stock slipped another nearly 2% after plunging more than 19% on Friday.

In results released last week, the owner of the Optavia weight-loss brand beat expectations with its Q2 results. However, it significantly lowered its forecast for the full year.

The company slashed its 2022 revenue prediction to a range of $1.58B to $1.66B. Previously, MED had predicted a figure between $1.78B to $1.84B.

Following the 19% slide on Friday, MED attempted a rebound early in Monday's action. The initial gains quickly disappeared, however, with the stock eventually finishing lower by $2.42. Shares ended at $136.49, after setting an intraday 52-week low of $135.54.

The recent slide has taken the stock below a recent trading range. MED has now fallen 37% in 2022 and is down 44% over the past 12 months.

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