UNFI - Hot Stocks: MAXN surges on earnings news; UNFI drops; KBAL jumps on merger deal; AAP sets 52-week low

2023-03-08 17:52:02 ET

The major U.S. equity averages finished Wednesday's trading with a mixed performance, as investors continued to process hawkish comments from Federal Reserve Chair Jerome Powell. Following a sharp drop the day before, the Nasdaq and S&P 500 ticked higher, while the Dow pushed further lower.

Maxeon Solar Technologies ( NASDAQ: MAXN ) was among the notable gainers on the session, with earnings news prompting a rally of more than 40%. Meanwhile, a takeover deal sent Kimball ( KBAL ) higher by more than 80%.

On the other side of the spectrum, United Natural Foods ( UNFI ) plummeted after releasing its quarterly update. At the same time, Advance Auto Parts ( AAP ) edged further lower, adding to recent weakness and setting a new 52-week low.

Standout Gainer

The release of quarterly results sent Maxeon Solar Technologies ( MAXN ) sharply higher. With strong Q4 revenues and a bullish forecast, shares of the solar company soared 44%.

MAXN reported gross profit of $20M in Q4, compared to a loss of $10M in the same period last year. the firm also posted an adjusted EBITDA loss of $3.7M for the latest quarter, with revenue jumping 46% to $324M.

Looking ahead, the firm predicted an adjusted EBITDA profit of $10M-$20M in Q1, with revenue totaling between $305M and $345M.

MAXN rose $8.25 in Wednesday's trading to finish at $27, its highest close of 2023. The stock has been climbing since late February but has been in a longer-term range that began last summer. Shares are up 77% so far this year.

Standout Decliner

A concerning quarterly update sparked selling in United Natural Foods ( UNFI ). Amid mixed Q2 results and a weak forecast, the stock plunged 28% to a new 52-week low.

The organic food company missed expectations with its Q2 results. The firm posted revenue growth of 5%. Meanwhile, UNFI lowered its forecast for 2023 and withdrew its targets for 2024 .

"Profits were challenged as we did not repeat the significant level of procurement gains from rapidly accelerating inflation and inventory gains, due to supply chain volatility, that we experienced in the second quarter of last year," the company's CEO said.

Amid the earnings news, UNFI dropped $11.55 to close at $29.47. During the session, the stock reached an intraday 52-week low of $26.60.

Notable New High

Kimball ( KBAL ) skyrocketed to a new 52-week high after announcing a deal to be acquired by HNI ( HNI ). With the takeover deal , shares of the furniture company soared 84%

Under the agreement, each KBAL share will be exchanged for $9 in cash and 0.1301 of a share of HNI common stock. This equates to a total value of about $485M.

With the merger deal, KBAL jumped to an intraday 52-week high of $12.44. The stock eventually closed at $12.37, rising $5.66 on the session.

Notable New Low

Advance Auto Parts ( AAP ) extended a recent downtrend, falling by an additional 1%. With the slide, the stock reached a new 52-week low.

AAP finished at $132.21, a decline of $1.48 on the day. During the session, shares of the auto parts retailer reached an intraday 52-week low of $130.94.

The stock experienced a brief upward blip in late February after the company reported its quarterly results and announced the retirement of its CEO. However, since then, the stock has trended lower. AAP has dropped in five of the last six days.

Overall, AAP has declined almost 13% in the past month and has fallen about 35% over the past year.

For more of the day's biggest winners and losers, head over to Seeking Alpha's On The Move section .

For further details see: