LLY - Hot Stocks: RFP jumps on merger deal; LLY sets new high; KRNT plunges on guidance; VSTO hits 52-week low

Stocks finished Wednesday's session with modest gains, boosted by the release of the minutes of the Federal Reserve's last policy meeting. With policymakers signaling a continued aggressive approach to fighting inflation, the S&P 500 and the Nasdaq both reversed early weakness to post closing gains of 0.4%.

While the broader averages spent most of the day near the unchanged mark, Resolute Forest Products ( RFP ) broke out during Wednesday's trading. News of a merger deal sent the stock soaring more than 60%.

Meanwhile, Eli Lilly ( NYSE: LLY ) continued to tick higher, building on a string of gains it has shown over the past few weeks. The advance allowed the stock to set another 52-week high.

Looking at some of the day's standout decliners, Kornit ( KRNT ) plunged after warning that its quarterly revenue will come in well below its previous forecast. On the news, the stock lost more than a quarter of its value.

Elsewhere, Vista Outdoor ( VSTO ) was another standout decliner. The stock retreated to a new 52-week low after announcing an acquisition.

Standout Gainer

Resolute Forest Products ( RFP ) popped following the announcement of a merger deal, allowing shares of the Canada-based pulp and paper company to skyrocket by 63%.

Under the deal , Paper Excellence Group's Domtar subsidiary will acquire RFP for $20.50 per share. This gives the deal an enterprise value of $2.7B.

RFP finished Wednesday's trading at $20.36, an advance of $7.86 on the day. Shares also touched an intraday 52-week high of $20.71.

The stock has been bouncing around in a range since May of 2021, with the deal-inspired jump taking shares to a new high. RFP traded below $2 in 2020.

Standout Loser

The release of preliminary Q2 results prompted a wave of selling in Israel-based e-commerce company Kornit ( KRNT ). Dragged down by the disappointing figures , the stock plummeted 26%.

The company said it expects its Q2 revenue to come in between $56.4M and $59.4M. The firm had previously targeted $85M-$95M, with analysts projecting a figure near $89M.

KRNT blamed the new forecast on an "overall re-calibration of e-commerce growth, combined with macro headwinds" as well as "delays in the completion of customer production facilities."

Following the warning, KRNT cratered to an intraday 52-week low of $20.40. Shares cut their losses during the session but still lost $8.10 on the day to finish at $23.46.

The slide added to a general downtrend that began in November. Shares have now fallen about 84% in 2022.

Notable New High

Eli Lilly ( LLY ) edged higher again on Wednesday, building on an uptrend it has seen over the last several months. The latest uptick allowed the stock to extend its 52-week high.

Shares of the drug maker advanced $2.92 on the session to close at $330.15. During the session, LLY also reached an intraday 52-week high of $332.74.

Wednesday's advance marked LLY's fifth consecutive day of gains and its 11th winning session out of the past 12. The stock, which has been lifted by a string of drug approvals , has climbed 6% over the past month and nearly 22% for all of 2022 so far.

Notable New Low

News of an acquisition sent Vista Outdoor ( VSTO ) sharply lower. The stock dropped 9% to reach a new 52-week low.

The maker of outdoor sports and recreation products revealed a deal to acquire Fox Racing, a provider of performance motocross, mountain bike and lifestyle gear. The agreement calls for a purchase price of $540M, plus another $50M possible based on the achievement of performance milestones.

Following the announcement, VSTO dropped $2.58 to close at $26.94. Shares also established a new intraday 52-week low of $26.54. Overall, the stock has fallen almost 44% in 2022.

For more on the session's best- and worst-performing stocks, click over to Seeking Alpha's On The Move section .

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