PACW - Hot Stocks: ZIM ZYXI rise on earnings; PRVB SGEN jumps on acquisition deal; ILMN up on a proxy fight; ZEV FRC SCHW slide

2023-03-13 11:51:02 ET

Stocks see-sawed during Monday's intraday session as investors weighed a proposal to backup all of the depositors in the defunct Silicon Valley Bank.

Looking at the specific stocks that were making significant moves during the session, ZIM Integrated Shipping Services ( NYSE: ZIM ) and Zynex ( NASDAQ: ZYXI ) gained following earnings results, whereas Lightning eMotors ( NYSE: ZEV ) slumped on after mixed Q4 results and weak outlook.

In M&A news, Provention Bio ( NASDAQ: PRVB ) stock gained momentum following a takeover deal by Sanofi ( NASDAQ: SNY ) and Seagen ( NASDAQ: SGEN ) jumped after an acquisition deal with Pfizer ( NYSE: PFE ).

Elsewhere, Illumina ( NASDAQ: ILMN ) shares jumped as Carl Icahn is preparing a proxy battle over the Grail deal. Meanwhile, First Republic Bank ( NYSE: FRC ), PacWest Bancorp ( NASDAQ: PACW ), Western Alliance ( NYSE: WAL ), The Charles Schwab Corporation ( NYSE: SCHW ) along with other regional banks plunged amid SVB woes.

Gainers

ZIM Integrated Shipping Services ( ZIM ) shares jumped more than 15% after upbeat Q4 results and positive outlook. The company also declared a $6.40/share dividend for the fourth quarter .

CEO commented: "We are confident in ZIM's strategy and believe we will generate positive EBIT in 2023. For the full year, we expect to generate Adjusted EBITDA between $1.8 billion to $2.2 billion and Adjusted EBIT between $100 million to $500 million."

Zynex ( ZYXI ) rose ~16% on strong orders and outlook despite reporting mixed Q4 results.

"We had a strong end to a record setting 2022, marked by increased revenue and orders every single quarter," said Thomas Sandgaard, President and CEO of ZYXI. "Our operating cash flows allowed us to buy back over $26 million of our common stock during 2022 which benefits all shareholders. Additionally, Zynex Monitoring Solutions (ZMS) is making significant progress with clinical data collection, and we expect to hit several regulatory milestones in 2023. We look forward to maintaining shareholder value through continued financial health and double-digit growth going forward."

Provention bio ( PRVB ) skyrocketed to a new 52-week high. It surged more than 250% after the company agreed to be acquired by Sanofi ( SNY ) in a deal value of ~$2.9B or for $25/share in cash.

Seagen ( SGEN ) rose about 16% after acquisition announcement by Pfizer for $229 a share in cash, in a deal worth about $43B.

Meanwhile, Illumina ( ILMN ) gained 15% after billionaire activist Carl Icahn announced to start a proxy fight over Grail deal. Icahn is said to claim that Illumina ( ILMN ) is vastly overpaying for Grail and went through with its acquisition even as it didn't know if European regulators would approve it. Icahn highlighted that Illumina has to pay $800M in operating costs, but has no control of Grail and can't realize any synergies from the purchase.

Decliners

Lightning eMotors ( ZEV ) shares were down about 34% after mixed Q4 results and weak revenue outlook. The company expects FY2023 revenue in the range of $35M to $50M vs. consensus of $124M.

Amid SVB and Signature Bank collapse, banking stocks are under pressure on growing concerns over the stability of the U.S. banking system.

First Republic Bank ( FRC ) dipped more than 70%. Raymond James downgraded shares to Market Perform from Strong Buy as its earnings power could be negatively impacted if net deposit outflows were to come to fruition.

The Charles Schwab Corporation ( SCHW ) -9% as market participants weigh the Federal Reserve's new lending facility for banks to stem the damage from the failures of Silicon Valley Bank ( SIVB ) and Signature Bank ( SBNY ). The company said it has adequate liquidity and borrowing capacity and most of its bank deposits (over 80%) fall within FDIC insurance limits.

PacWest Bancorp ( PACW ) -28% , Western Alliance ( WAL ) -58% ,

For further details see: