BBIO - Hot Stocks: RIGL KFY gain on earnings; DSEY surges on going-private deal; SHLS BBIO slide

2023-03-08 11:54:50 ET

During Wednesday's midday trading, the major U.S. equity indexes were mixed, as Wall Street tried to recover following hawkish comments by Federal Reserve Chairman Jerome Powell the day before.

Looking at the individual stocks, Korn Ferry ( NYSE: KFY ) and Rigel Pharmaceuticals ( RIGL ) surged on upbeat earnings results, while Diversey Holdings ( DSEY ) gained momentum following a deal to be taken private by Solenis.

In other news, Shoals Technologies ( SHLS ) slumped on a secondary offering and BridgeBio Pharma ( BBIO ) dropped on an equity raise.

Gainers

Rigel Pharmaceuticals ( RIGL ) surged around 11% following better than expected Q4 results released after the close on Tuesday.

The company reported a revenue growth of ~151% Y/Y and net income of $1.4M as compared to a net loss of ~$22.6M year ago.

Korn Ferry ( KFY ) was also rising during midday trading, climbing 8% after the company topped Q3 expectations and guided Q4 EPS above consensus.

"Korn Ferry is incredibly well-positioned as clients continue to navigate an economy in transition," the firm's CFO commented. "We will continue to prioritize faster growing, larger addressable, less cyclical markets that set up our firm and our clients for success. As an example, the recent addition of Salo now brings our interim services to be more than 10% of our firm’s revenue on a pro forma basis."

Elsewhere, Bain Capital-backed chemical company Diversey Holdings ( DSEY ) rallied around 38% in intraday action after agreeing to be taken private by Solenis for $8.40 a share . The purchase price represented a 41% premium over its closing price on Tuesday.

Bain Capital will contribute ~56% of its existing equity into Solenis and will sell its remaining shares to Solenis for cash at the same price.

Decliners

Shoals Technologies ( SHLS ) plunged during Wednesday's intraday session after pricing secondary offering of 24.5M shares of Class A common stock by certain selling stockholders affiliated with Dean Solon at $24.7/share.

BridgeBio Pharma ( BBIO ) saw its shares contract around 15% after announcing an effort to raise capital via public offering of ~8.8M common shares at $17.00/share. The transaction will result in gross proceeds of ~$150M.

To keep track of Wall Street's biggest winners and losers throughout the session, head over to Seeking Alpha's On The Move section .

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