VVNT - Hot Stocks: POWL rises on earnings; VVNT merger deal; MRTX drops on clinical data; HLF falls

Stocks suffered another notable decline on Tuesday, adding to a slide seen during the previous session. Amid worries about next week's Federal Reserve meeting, the S&P 500 dropped 1.4%, its fourth consecutive day of declines.

In terms of individual stocks, Vivint Smart Home ( NYSE: VVNT ) expanded its value by nearly a third after agreeing to be acquired by NRG Energy ( NRG ). Meanwhile, earnings news sparked a 20% rise in Powell Industries ( POWL ), sending the stock to a new 52-week high.

On the downside, Mirati ( MRTX ) plunged after releasing clinical trial results. At the same time, news of a capital raise caused Herbalife Nutrition ( HLF ) to lose about a quarter of its value.

Standout Gainer

Shares of Vivint Smart Home ( VVNT ) surged almost 32% after agreeing to be acquired by NRG Energy ( NRG ) in a deal valued at $5.2B. Shares of NRG dropped 15% on the news.

The deal value equates to about $2.8B in cash and the assumption of $2.4B of debt, with a purchase price of $12 per share. The transaction is expected to close in Q1 of 2023.

VVNT closed the session at $11.90, an advance of $2.91 on the day. Shares also reached an intraday 52-week high of $11.93.

Meanwhile, NRG declined $6.16 to close at $34.68. The stock touched an intraday 52-week low of $33.86.

Standout Decliner

Investors expressed disappointment with clinical trial data from Mirati ( MRTX ), which plunged 23% after announcing preliminary results from a mid-stage trial of its adagrasib in combination with Merck's ( MRK ) Keytruda for the treatment of non-small cell lung cancer.

MRTX said results from the Phase 2 trial showed "favorable tolerability and promising preliminary efficacy." Still, the stock dropped $21.23 to close at $71.52.

Shares had rallied late last month amid takeover speculation . That upswing took the stock to a close of $98.62 on Nov. 25, its highest finish since February. Shares are currently about 48% lower for 2022.

Notable New High

Powell Industries ( POWL ) rode a strong earnings report to a new 52-week high, with better-than-expected financial figures sparking a nearly 20% rise in the company's stock.

The provider of engineered solutions reported a quarterly profit of $0.73 per share, easily beating the $0.18 per share that analysts had predicted. Revenue surged 26% to almost $163M.

Looking ahead, the company predicted that its earnings will "significantly improve" in 2023 compared to the previous year. "We anticipate revenue growth in most of our key market sectors versus the prior year," Powell's CFO added.

POWL finished Tuesday's trading at $32.34, an advance of $5.34. During the session, the stock reached an intraday 52-week high of $32.75.

Notable New Low

Herbalife Nutrition ( HLF ) endured a wave of selling after it announced the sale of convertible senior notes . Weighed down by the capital raise, the stock plunged 25% to reach a new 52-week low.

The multi-level marketing firm, which sells dietary supplements, announced a proposed $250M private offering of convertible senior notes due 2028. The sales will be made to qualified institutional buyers.

On the news, HLF slumped to an intraday 52-week low of $12.89. Shares ticked off that mark just before the close, ending the day at $13.06. This represented a decline of $4.40 compared to the previous day's finish.

Looking longer-term, HLF has dropped 69% in 2022.

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