EXTR - Hot Stocks: Solar stocks drop; EXTR slumps on CFO resignation; TIGO HES rally

Wall Street recorded a mixed performance on Wednesday, as the major U.S. equity averages bounced back from an early slide to finish near the unchanged mark. The S&P 500 and Nasdaq ended with slight losses, while the Dow eked out a thin gain.

Despite the overall rebound, solar stocks remained lower. The sector was weighed down by a cautious comment from Barclays. Sunrun ( RUN ), Sunnova ( NOVA ), First Solar ( FSLR ) and SolarEdge Technologies ( SEDG ) all ended lower.

Extreme Networks ( NASDAQ: EXTR ) was another notable decliner, posting a double-digit percentage slide following the resignation of its top financial executive.

On other side of the spectrum, Millicom International ( TIGO ) expanded its value by nearly a quarter after reports of takeover interest. Elsewhere, Hess ( HES ) rode better-than-expected earnings to a fresh 52-week high.

Sector In Focus

Solar stocks lost ground following a cautious comment from Barclays , which warned that big names in the sector would be hit by slowing residential solar demand. The firm cut its rating on Sunrun ( RUN ) to Equal Weight from Overweight and reduced its opinion on SunPower ( SPWR ) to Underweight from Equal Weight.

The downgrade sent RUN lower by about 7%. SPWR slumped about 7% early in the session but bounced back in the middle of the day, ending with a loss of under 1%.

Elsewhere, Sunnova ( NOVA ) dropped more than 7%, even as Barclays called the stock "best positioned with [its] dealer-only model and lowest exposure" to California. Meanwhile, First Solar ( FSLR ) slumped about 2%, while SolarEdge Technologies ( SEDG ) dropped about 3%.

Standout Gainer

Millicom International ( TIGO ) jumped around 23% amid reports that the company has received takeover interest .

According to the Financial Times, a group including private equity firm Apollo ( APO ) and former Softbank executive Marcelo Claure are weighing a potential offer for the Latin American telecom firm. The news outlet said the bid would value the company in the "high teens" per share, or almost $10B, including debt.

TIGO finished Wednesday's trading at $18.25, an advance of $3.42 on the day. This accelerated upward momentum that has marked much of trading since late October, when the stock set a 52-week low of $10.22.

Shares have climbed 79% since hitting its low. Still, the stock remains 3% lower compared to the same time last year.

Standout Decliner

A major leadership change spurred selling in Extreme Networks ( EXTR ), which dropped more than 14% after the company announced the resignation of its CFO . This came despite better-than-expected quarterly results and a raised forecast.

The provider of networking solutions said CFO Rémi Thomas will leave the company on Feb. 16 to take a position at a privately held software company. The firm named Cristina Tate, SVP and head of Financial Planning & Analysis, as interim CFO.

EXTR also issued its Q2 results, saying non-GAAP EPS jumped nearly 29% from last year and beat analysts' expectations. Revenue also came in above estimates, climbing 13% from last year to around $318M.

With investors focusing on the leadership shuffle, EXTR dropped $2.81 to close at $16.50. The retreat took the stock below a recent trading range and to its lowest level since late October.

Notable New High

The release of earnings news sent Hess ( HES ) to a new 52-week high. Shares climbed almost 3% after topping expectations with its latest quarterly profit.

The company said its Q4 GAAP earnings more than doubled from last year, with its bottom-line total easily exceeding analysts' consensus. Revenue climbed 35% to reach $3.05B.

Following the earnings news, HES rose $4.01 to close at its high for the day at $157.89. This also represented a new intraday 52-week peak.

Wednesday's advance added to a long-term uptrend. Shares have climbed 17% so far in 2023. The stock is up almost 80% over the past year.

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

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