CAPIS Morning Note – 02/28/24: Market Moves Into Churn, 5100 Has Been Tested 5 Times Now This Month

• IPOs Priced or News: None of note.
• New SPACs launched/News:
  • Aetherium Acquisition Corp. (GMFI): AirAsia (Capital A Int’l) to list on U.S. markets via SPAC deal with GMFI.
  • Sizzle Acquisition Corp. (SZZL) completes business combination with Critical Metals Corp. – will begin trading on Nasdaq under the ticker symbol “CRML” on February 28, 2024.
• Secondaries Priced:
  • ABSI: Prices offering of 16.7 million shares of common stock at $4.50 per share.
  • BROS: Prices secondary offering of 8.0 million shares of common stock at $29.05 per share.
  • OGEN: Pricing of Public Offering 1,400,000 shares @$1.50.
  • PWP: Prices offering of 5.0 million shares of common stock at $12.00 per share.
• Notes Priced of note:
  • FIVN: Prices offering of $650.0 million of 1.00% convertible senior notes due 2029.
  • PRGS: Prices offering of $400.0 million of 3.50% Convertible Senior Notes due 2030.
• Common Stock filings/Notes:
  • ABSI: Proposed Public Offering of Common Stock.. $75.0 million of shares. (MS and TD Bookmanagers)
  • BROS: Launch of Secondary Public Offering of Class A Common Stock – 8,000,000 shares. (MS Underwriter)
  • DEA: FORM S-3ASR – Mixed Shelf Offering.
  • JANX: Proposed Public Offering of Common Stock.. $175.0 million of shares. (BAC, TD, Cantor and Blair bookmanagers)
  • OGEN: Proposed Public Offering. (ThinkEquity and Laidlaw Bookmanagers)
  • PWP: Has commenced a public offering of 4,500,000 shares of Class A common stock.
  • SPRC: Filed FORM F-1 – Up to 5,402,887 Ordinary Shares.
  • VKTX: Proposed Public Offering of Common Stock.. $350.0 million of shares of its common stock. (MS, Leerink, Blair, RJ, Stifel and Truist Bookmanagers)
• Direct Offering: None of note.
• Selling Shareholders of note:
  • CIVI: Announces the execution of a definitive agreement to repurchase approximately 876 thousand shares of its common stock at a price of $64.54 per share from NGP Tap Rock Holdings, LLC and certain of its affiliates.
  • REKR: Files for 3,496,464 shares of common stock by selling shareholders.
  • SHC: Launches secondary offering of 25 million shares of its common stock by selling stockholders, which include affiliates of Warburg Pincus LLC and GTCR, LLC, as well as two members of management and one member of the Board of Directors of the Company. (JPM, GS, Citi and Jefferies Bookmanagers)
• Private Placement of Public Entity (PIPE):
  • APLT: Announces $100 Million Private Placement.
  • CRNX: Has agreed to sell 8,333,334 shares of its common stock at a price of $42.00 per share to a select group of institutional and accredited healthcare specialist investors in an oversubscribed private placement.
• Mixed Shelf Offerings:
  • AFG: FORM S-3ASR – Mixed Shelf Offering.
  • BCRX: Files mixed shelf securities offering.
  • EVER: Files $150 million mixed shelf securities offering.
  • FULC: Files $350 million mixed shelf securities offering.
  • IRBT: Files mixed shelf securities offering.
  • ITRI: Files mixed shelf securities offering.
  • SNDX: Files mixed shelf securities offering.
• Debt/Credit Filing and Notes:
  • BSX: Completion of €2.0 Billion Offering of Senior Notes.
  • NEU: FORM S-3ASR – Debt Securities.
  • SBH: Completion of a Registered Public Offering of $600 Million of Senior Notes Due 2032.
• Tender Offer: None of note.
• Convertible Offering & Notes Filed:
  • MLGO: Form 6K.. On February 27, 2024, the Company entered into various Convertible Note Purchase Agreements.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close :

• After Hours Movers: 
  • BYND: +77% Earnings 
  • FLYW: +19% Earnings 
  • AMBA: +11% Earnings 
  • CPNG: +9.5% Earnings
  • BGS: +7% Earnings 
  • INGN: -19% Earnings 
  • IAS: -18% Earnings 
  • RXRX: -17% Earnings 
  • DV: -16% Earnings 
  • LMND: -16% Earnings 
  • EB: -14.5% Earnings 
  • JAMF: -13% Earnings 
  • TMCI: -13% Earnings 
  • SAM: -13% Earnings 
  • URBN: -11% Earnings 
  • ACAD: -8% Earnings 
  • BMBL: -7% Earnings  
• News Items After the Close:
  • Stocks making the biggest moves after hours: BYND, A, AXON, URBN. EBAY, FSLR, SAM (CNBC)
  • Beyond Meat’s (BYND) stock sizzles nearly 75% higher on growing gross margins. (MarketWatch)
  • UnitedHealth’s (UNH) stock falls after report of antitrust investigation with a few minutes left in trading and then more details after the close. (MarketWatch)
  • VOD: Swisscom Is in Advanced Talks to Buy Vodafone Italy Unit. (Bloomberg)
  • Starbucks (SBUX) to hike wages for union workers as it thaws relationship with Workers United. (CNBC)
  • Axalta Coating Systems (AXTA) expected to result in the termination of approximately 600 employees globally.
  • Bumble Inc. (BMBL) announces plans to reduce global workforce by approximately 350 roles. (CNBC)

• Exchange/Listing/Company Reorg and Personnel News:
  • Boston Beer Co (SAM) announces leadership changes effective April 1, 2024.
  • Madrigal Pharmaceuticals (MDGL) appoints Mardi Dier as CFO.
  • Par Pacific (PARR) William Pate will retire as Chief Executive Officer at the upcoming annual shareholders’ meeting in May.
  • Philips (PHG) names Charlotte Hanneman as successor to CFO.
  • Veru (VERU) Announces Notification from Nasdaq Related to Delayed Quarterly Report on Form 10-Q.
  • Vishay (VSH) Appoints David McConnell as CFO.
  • VLCN: Business Update from John Kim New CEO at Volcon Inc.
• Buyback Announcements or News: 
  • APi Group (APG) announced that its Board of Directors has authorized a stock repurchase program to purchase up to an aggregate of $1 billion of shares of the Company’s common stock, of which $600 million will be utilized in the Series B Preferred Stock repurchase.
  • Beacon Roofing Supply (BECN) Board authorized a $500 million buyback.
  • Blue Foundry Bancorp (BLFY) Announces Adoption of Fourth Stock Repurchase Program.
  • eBay (EBAY) authorizes an additional $2.0 billion stock repurchase program. (see Dividends)
  • Janus International Group (JBI) announces $100 million share repurchase program.
  • Lemaitre Vascular (LMAT) authorized the repurchase of up to $50.0 million of the Company’s common stock.
  • Nutrien (NTR) announces that the Toronto Stock Exchange has accepted Nutrien’s notice to commence a normal course issuer bid to purchase outstanding common shares representing up to five percent of its issued and outstanding common shares.
  • ODP Corp (ODP) Board of Directors has approved a new $1 billion, 3-year, share repurchase authorization.
  • Squarespace (SQSP) Board approved $500 million buyback.
  • Stellantis (STLA) announces launch of first tranche of its 2024 share buyback program.
  • Taboola (TBLA) new $100 million buyback authorization.
  • Vistra Energy (VST) authorizes additional $1.5 billion buyback.
  • XP has approved a new share repurchase program, which aims to neutralize future shareholder dilution due to the vesting of Restricted Stock Units from the Company’s long-term incentive plan.
  • YETI Holdings (YETI) entered into $100 million accelerated share repurchase agreement.
• Stock Splits or News:
  • China Jo-Jo Drugstores, Inc. (CJJD) Announces 1-for-20 Reverse Stock Split.
• Dividends Announcements or News:
  • eBay (EBAY) increased quarterly cash dividend by 8%.
  • EMCOR Group (EME) increase to the Company’s regular quarterly dividend to $0.25 per share from $0.18 per share.
  • Gaming and Leisure Properties (GLPI) increases quarterly dividend to $0.76 per share from $0.73 per share.
  • Global Net Lease (GNL) Reduced annual dividend to $1.10 per share of common stock starting with the dividend expected to be declared in April 2024 which increases the amount of cash that can be used to lower leverage.
  • Inter Parfums (IPAR) increased its annual dividend to $3.00, resulting in a quarterly dividend of $0.75.
  • Permian Resources (PR) declared a variable quarterly dividend of $0.10 in addition to regular quarterly dividend of $0.05.
  • Ryan Specialty Group (RYAN) declares one-time special dividend of $0.23 per share, initiates quarterly dividend of $0.11 per share.
  • Silgan Holdings (SLGN) increases quarterly cash dividend to $0.19 per share from $0.18 per share.

What’s Happening This Morning: Futures value reflects the change with fair value.

Sector Action – (1/3/6/12/YTD Updated Weekly with Monday release):  

• Daily Positive Sectors: Utilities, Communication Services, Consumer Cyclical, Financial, Basic Materials of note.
• Daily Negative Sectors: None of note.
• One Month Winners: Technology, Healthcare, Financial of note.
• Three Month Winners: Technology, Healthcare, Financial of note.
• Six Month Winners: Technology, Financial, and Communication Services of note.
• Twelve Month Winners: Technology, Communication Services, and Consumer Cyclical of note.
• Year to Date Winners:  Technology, Healthcare, Communication Services of note.

The technology-heavy Nasdaq Composite resumed its climb Tuesday, closing within striking distance of a record high hit in 2021. The gauge rose 0.4%, off 0.1% from its record of 16057.44. The S&P 500 was little changed for much of the day before closing up 0.2%. The Dow Jones Industrial Average lost 96.82 points, or 0.2%. All three are on track to close out the month with gains.  Bitcoin prices jumped to $56,989.30, the highest level since December 2021.   (WSJ – edited by QPI)

Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)

• Gap Up: BYND 57%, FLYW 23%, ACMR 17%, VTEX 11%, AMBA 11%, YOU 9%, CPNG 8%, CRDO 7%, UHS 7%, RVLV 7%, VIPS 7%, IMAX 6%, BGS 5%, CHE 5%, PR 5%, FSLR 5%, ALC 5%, FARO 5%, EBAY 4%, GOGL 4%, GO 4% of note.
• Gap Down: IAS -26%, INGN -19%, LPRO -17%, EB -16%, LMND -15%, DDD -13%, TMCI -11%, RXRX -11%, RYAM -10%, SAM -10%, URBN -10%, GDOT -10%, PRCT -9%, BMBL -9%, PGNY -8%, LAZR -8%, SPCE -6%, NRDY -6%, OPK -6%, XNCR -5%, AGL -5%, JAMF -5%, FULC -5%, ARRY -5%, ALHC -5%, RKLB -5%, SUPN -4%, TKO -4%, PARR -4%, of note.

Insider Action:  sees Insider buying with dumb short selling.  No stock sees Insider buying with smart short sellers.

Will return tomorrow’s publication.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

• What You Need To Know To Start Your Day. (Bloomberg)
• The Open: Newsletter for Bloomberg Subscribers *NEW* (Bloomberg)
• 5 Things To Know Before the Stock Market Opens Today. (CNBC)
• Bloomberg Lead Story:  Apple’s Cancelled Car Project Means AI and Headset Bets are More Urgent. (Bloomberg)
• US Futures Slip Before Economic Data, Dollar Gains: Markets.  (Bloomberg)
• Interest rates at 7% hit mortgage demand hard. (CNBC)
• Bloomberg: The Big Take:  Flawed Valuations threaten $1.7 trillion in Private Credit Boom. (Podcast)
• NY Times Daily:  An Arms Race quietly unfolds in space. (Podcast)
• Marketplace:  Department of Energy Secretary Jennifer Granholm tries to create industry for EV batteries in U.S. (Podcast)
• Wealthion: Passive investing exposed by Michael Green. (Podcast)

Moving Average Update: Day 3 of 100%.

Geopolitical: 

M&A Activity and News:

• Southern States Bancshares (SSBK) signs a definitive merger agreement under which Southern States would acquire CBB Bancorp (CBBI).

Top Tier Sell-side Upgrades & Downgrades:

The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting is to make the reader aware of market-moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.

Today’s Upgrades and Downgrades:

Previous Day’s Upgrades and Downgrades: