CAG - Hot Stocks: WAL drops on financial update; CAG rises on earnings; ALB SPT fall

2023-04-05 14:02:47 ET

While investors generally hope that the worst of the banking crisis is now in the past, worries remain about individual financial institutions. Western Alliance Bancorporation ( NYSE: WAL ) fell prey to some of these concerns, posting a double-digit percentage decline in Wednesday's midday trading following the release of a financial update.

Outside of banking, Albemarle ( ALB ) dropped following a bearish call from an analyst. At the same time, Sprout Social ( SPT ) lost ground on a short report.

Elsewhere, earnings news prompted buying in ConAgra Brands ( CAG ), which advanced following the release of Street-beating quarterly results.

Decliners

Western Alliance Bancorporation ( WAL ) dropped sharply in midday trading after the company issued a financial update . Shares of the bank, which generated investor concerns during the banking crisis as its exposure to the startup and tech market led to a high level of uninsured deposits, dropped 16% on the news.

WAL reported that its total insured deposits represent 68% of total deposits. At its last update, issued in mid-March, the company said insured deposits represented 55% of total deposits. The company did not provide an update on the amount of its total deposits.

Albemarle ( ALB ) slumped almost 7% in intraday action after Bank of America cut its rating on the specialty chemicals company to Underperform from Neutral . Analyst Matthew DeYoe stated that he has "growing confidence that negative earnings revisions are forthcoming" reflecting softer chemical markets.

The release of a short report sparked selling in Sprout Social ( SPT ). Shares of the social media management firm plunged more than 11% after Akram's Razor argued that the firm suffered from a "nosebleed" valuation and could hit a near-term "growth wall."

Gainer

ConAgra Brands ( CAG ) received a boost from its latest quarterly report, thanks to better-than-expected Q3 results and a raised forecast. The packaged food giant beat analysts' expectations with its quarterly profit, with revenue that rose 6% from last year to reach $3.09B. A nearly 14% rise in prices offset a 10% drop in volume.

Looking ahead, CAG predicted adjusted EPS for the year of $2.70-$2.75, up from its previous forecast of $2.60-$2.70. Analysts were looking for a figure of around $2.68. Bolstered by the earnings news, CAG climbed more than 3% in midday trading.

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