RXDX - Hot Stocks: RXDX jumps 70% on MRK deal; TECK climbs; STT GNTY fall on earnings news

2023-04-17 17:50:10 ET

Stocks notched modest gains in choppy action on Monday. The major averages bounced around the unchanged mark for most of the day, before drifting higher in the final hours of the session.

M&A headlines prompted gains in a couple of select names. Prometheus Biosciences ( NASDAQ: RXDX ) soared on an agreement to be acquired by Merck ( MRK ). Meanwhile, Teck Resources ( TECK ) climbed to a new 52-week high amid deal speculation.

Turning to some of the standout decliners, State Street ( STT ) dropped on earnings news. Elsewhere in the financial sector, quarterly results dragged Guaranty Bancshares ( GNTY ) to a new 52-week low.

Standout Gainer

The announcement of a takeover deal sent Prometheus Biosciences ( RXDX ) skyrocketing. Shares of the biotech jumped about 70% after reaching an agreement to be acquired by Merck ( MRK ).

The purchase price for the proposed transaction is $200 per share in cash. That gives the deal a total equity value of about $10.8B.

RXDX closed Monday's trading at $193.51, rising $79.50 on the day. Shares also touched an intraday 52-week high of $193.98. The stock has climbed 82% so far in 2023 and has surged more than 500% over the past 12 months.

Standout Decliner

Disappointing results prompted selling in State Street ( STT ), with the stock plummeting 9% on the news.

The bank reported a Q1 profit of $1.52 per share, missing analysts' consensus by $0.12 per share. Revenue edged up 0.6% to reach $3.1B. Provision for credit losses rose to $44M from $10M in Q4.

"We are optimistic about client onboardings and we expect revenue growth in the coming quarter," CEO Ron O'Hanley said of the company's outlook.

STT dropped $7.40 to finish at $72.68. This reversed gains posted over the previous few weeks, falling to its lowest level since late March.

Notable New High

Teck Resources ( TECK ) surged to a new 52-week high amid deal-making chatter surrounding the firm's base metals business. The stock rose almost 8% to push above the per-share takeover price offered by Glencore.

The advance came as reports over the weekend point to interest from Freeport McMoRan, Vale and Anglo American in discussing a transaction involving TECK's base metals business, if the company pushes ahead with its planned spinoff.

The rally took TECK to an intraday 52-week high of $49.34. Shares moderated a bit from there but still closed at $48.65, a climb of $3.43 on the session.

With the advance, the stock extended its recent upward momentum. TECK has climbed about 38% in the past month.

Notable New Low

Guaranty Bancshares ( GNTY ) slumped nearly 5% following the release of its quarterly results , a slide that took the stock to a new 52-week low.

The bank reported a quarterly profit that exceeded projections. However, its revenue figure came in below expectations, dipping 2% from last year.

GNTY closed at $25.14, a decline of $1.21 on the day. During the session, the stock also reached an intraday 52-week low of $25. The slide added to a recent downtrend, with shares slipping 11% in the past month. So far this year, GNTY has dropped 27%.

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