Here we look at some of the biggest movers last week, while only considering the companies with a market cap of at least $5 billion.
Biopharmaceutical firm Immunovant’s (IMVT:US) shares closed as much as 88% higher last week following the announcement of top-line results from an early-stage trial of its drug for autoimmune diseases. Analysts have characterized these results as a best-case scenario.
Immunovant is developing IMVT-1402, an antibody drug administered as an under-the-skin injection, with the aim of treating autoimmune diseases. IMVT-1402 belongs to a class of treatments for autoimmune conditions that target the tail region of antibodies, facilitating the activation of the immune system.
Roivant Sciences (ROIV:US), the majority shareholder of Immunovant, also saw a notable increase in its stock price.
Tech conglomerate headquartered in Singapore Sea Ltd (SE:US) saw its stock rise over 22% in the week behind us following the introduction of regulatory restrictions in Indonesia. These restrictions prohibit social commerce companies from enabling direct e-commerce payments on their platforms.
For Sea Ltd, this is important as the company’s Shopee platform has been facing competition from TikTok Shop. Hence, these curbs are a positive development for Shopee, as they are expected to create a less competitive market environment.
The updated regulations in Indonesia are expected to have a substantial impact on TikTok due to its e-commerce app and the relatively short grace period of 7 calendar days for platforms to comply. This period is seen as a crucial opportunity for Shopee to regain as much market share as possible, given the challenges facing its competitors.
Electronics manufacturing company Jabil’s (JBIL:US) stock rose nearly 18% last week, including a one-day gain of 19% (the largest one-day gain in 14 years), after the company reported better-than-expected fourth-quarter results.
The company's results for the quarter included core EPS of $2.45, surpassing the estimate of $2.32. Net revenue of $8.46 billion, which was slightly below the estimate of $8.51 billion.
CEO Kenny Wilson said, “As we move into the new fiscal year, I feel strongly that we have the right team, capabilities, and diversified portfolio to support good momentum into FY24 and beyond.”
For the first quarter, Jabil provided guidance, with core EPS expected to be in the range of $2.40 to $2.80, compared to the estimate of $2.33, and net revenue expected to be in the range of $8.4 billion to $9.0 billion, compared to the estimate of $9.19 billion.
The company also announced a plan to allow the buyback of up to $2.5 billion in stock.
SIRIUS XM HOLDINGS INC
Broadcasting corporation Sirius XM’s (SIRI:US) shares jumped more than 12% in the week behind us following Liberty Media's (LSXMA:US) proposal to spin off its tracking shares and merge them with the publicly traded shares of the broadcasting company.
The ownership structure, where Liberty Media holds over 80% of SiriusXM, results in relatively few shares available for trading, making the stock more susceptible to wide price swings. Moreover, approximately 27% of SiriusXM shares are currently sold short, according to Bloomberg data.
With such a high number of short positions, even minor increases in the stock's price could lead to short-sellers covering their positions by buying back shares, potentially causing further price increases.
NEXTERA ENERGY INC
American energy company NextEra Energy’s (NEE:US) shares slipped over 15% last week after the company reaffirmed its adjusted earnings per share forecast for the full year. NEE still expects adjusted FY24 EPS to be in the range of $2.98 to $3.13, with the consensus estimate at $3.12.
Additionally, NextEra Energy provided forecasts for the coming years, including adjusted EPS expectations for 2025 and 2026. For the former, NextEra Energy continues to expect adjusted EPS for 2025 to be in the range of $3.45 to $3.70. For the latter, NextEra Energy expects adjusted EPS to be in the range of $3.63 to $4.
The company also announced a deal to sell Florida City Gas to Chesapeake Utilities for $923 million in cash.
Investors are concerned that the higher cost of capital in the renewables sector and the overall elevated interest rate environment pose challenges to the company’s business model.