SSYS - Hot Stocks: WAL hits 52-week low in SIVB aftermath; DOCU drops on earnings; ERJ SSYS rally

2023-03-10 18:17:44 ET

Stocks dropped on Friday, weighed down by the failure of Silicon Valley Bank. The S&P 500 fell 1.5%, adding to weakness seen the previous day.

Financial stocks were dragged down by the turmoil at SVB, leading to sharp declines among a host bank names. This included Western Alliance Bancorporation ( WAL ), which plunged to a new 52-week low.

Outside the financial sector, Docusign ( NASDAQ: DOCU ) represented another notable decliner on the session. Executive changes sparked selling, overshadowing stronger-than-expected quarterly results.

Among the day's notable gainers, earnings news sent Embraer ( ERJ ) to a new 52-week high. Meanwhile, Stratasys ( SSYS ) surged on an acquisition bid.

Standout Gainer

A takeover offer sent Stratasys ( SSYS ) sharply higher. Following a bid from rival Nano Dimension ( NNDM ), shares of the 3D printer maker surged 9%.

NNDM offered to buy SSYS for $18 per share in cash. The company also added that it has held talks with SSYS that it characterized as "constructive" and "informal."

For its part, SSYS confirmed it has received the unsolicited bid and said its board will review the proposal.

SSYS climbed $1.27 to finish at $15.28. The upswing added to a recent gain, with shares rising nearly 11% in the past month and 28% so far in 2023. The stock also reached its highest close since September.

Standout Decliner

Docusign ( DOCU ) dropped 23% despite Q4 results that topped expectations and a solid forecast. Investors were rattled by reshuffling in the company's C-Suite.

The online document signing company revealed Q4 earnings and revenue that topped analyst expectations . This included revenue that climbed 14% from last year to reach about $660M.

Looking ahead, the company projected Q1 revenue of $639M-$643M, compared to a Wall Street consensus of around $640M.

In terms of executive changes , DOCU revealed that CFO Cynthia Gaylor would step down from the role later this year. At the same time, the company named outside executive Robert Chatwani as president and general manager of growth. Former Google exec Anwer Akram will also become part of the firm's management team, taking over the role of COO.

DOCU finished Friday's trading at $49.69, a decline of $14.72 on the day. With the slide, the stock dropped below a recent trading range to reach its lowest close since early December.

Notable New High

Embraer ( ERJ ) rode a better-than-expected earnings report to a new 52-week high. Shares of the Brazilian airplane maker climbed about 4%.

ERJ said revenue reached $2B , climbing 53% from the same period last year. The company reported 80 jet deliveries in Q4 and disclosed a firm order backlog of $17.5B, $500M higher on a year-over-year basis.

Boosted by the earnings report, ERJ soared to an intraday 52-week high of $15.03. The stock eventually closed at $14.42, rising by 59 cents.

Longer-term, shares have surged nearly 17% over the past month. So far in 2023, the stock has climbed 35%.

Notable New Low

As the aftershocks of turmoil at SVB Financial ( SIVB ), which included an FDIC takeover of Silicon Valley Bank, shares of Western Alliance Bancorporation ( WAL ) plunged 21% to reach a new 52-week low.

Saying it was making the disclosures "in light of recent industry events," WAL revealed updated financial figures , assuring that "liquidity remains robust" and "deposits remain strong."

At one point, WAL reached an intraday 52-week low of $30.05, a drop of more than 50% from the previous day's close. Shares recovered late in the session but still ended at $49.34, a slide of $13.05 on the day.

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

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