RBA:CC - Hot Stocks: XM edges higher on takeover offer; VST climbs; IAA slumps; AZUL surges on earnings news

2023-03-06 12:57:02 ET

With earnings season now in the rearview, other corporate news items became notable catalysts in Monday's midday trading. This includes M&A headlines, with Qualtrics ( NASDAQ: XM ) climbing after it received a takeover offer.

Vistra ( VST ) also rose, posting a double-digit percentage gain after announcing a deal to acquire Energy Harbor. Meanwhile, IAA Inc. ( IAA ) dropped amid signs of a setback with its deal to be acquired by Ritchie Bros. ( RBA ).

Meanwhile, a few earning reports still stirred trading as well. Azul ( AZUL ) skyrocketed after announcing its quarterly results, thanks to an upbeat forecast.

Gainers

Azul ( AZUL ) soared almost 40% in midday trading after the Brazilian air carrier included a strong forecast in its Q4 update. "Looking ahead to 2023, we are encouraged by the strong demand environment and important milestones in our route network," the firm's CEO said.

For Q4, AZUL reported a wider-than-expected loss. Meanwhile, the firm's revenue figure of $856M came in below expectations, even as passenger revenue rose 19% from last year.

Elsewhere, Qualtrics ( XM ) edged higher in intraday action after receiving a takeover bid from Silver Lake Management and Canada Pension Investment Board. Shares of the employee-survey software business rose more than 1%.

The bid values XM at $18.15 per share. According to a regulatory filing, XM is in exclusive negotiations with Silver Lake, which owns about 25M shares of XM, until March 15.

M&A news also gave a lift to Vistra ( VST ), which agreed to acquire nuclear power firm Energy Harbor. The deal consists of $3B in cash and a 15% equity interest in Vistra Vision, a new subsidiary that will own Vistra's nuclear and retail businesses. VST jumped 14% on the day.

Decliner

IAA Inc. ( IAA ) dropped in midday trading after the company ran into a potential hurdle in its deal to be acquired by Ritchie Bros. ( RBA ). Proxy advisors advocated that shareholders should vote against RBA's planned takeover.

The initial deal, announced in November, calls for RBA to acquire IAA in a cash-and-stock deal originally valued at $7.3B. Under the agreement, each IAA share will be exchanged for $10 in cash and 0.5804 shares of RBA.

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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