CAPIS Morning Note – 2/11/25: Stocks Trading Lower Into Tuesday

• IPOs For The Week: BTAI, GSAT, KORU, NEXN, NIVF, RIME, SCCO,
  TCBP 
• New IPOs/SPACs launched/News:
• IPOs Filed/Priced: None of note. 
  • SION Closing of $219.2 million Upsized Initial Public Offering, Including Full Exercise of
    Underwriters’ Option to Purchase Additional Shares
• Secondaries Filed or Priced:
  • SERA announces proposed public offering.
  • HLNE announces public offering of 1,572,536 shares Class A common stocks.
  • HESM Secondary Public Offering of Class A Shares 10,000,000 Class A shares
  • INCY: Form S-3ASR .. 30,487,103 Shares
• Notes Priced:
• Direct Offering: None of note.
• Exchangeable Subordinate Voting Shares: None of note.
• Selling Shareholders of note:
  • NVNI files for 60,736,190 ordinary share offering by selling shareholders.
• Mixed Shelf Offerings:
  • NLSP: Form F-3.. $75,000,000 Mixed Shelf
• PIPE:
• Convertible Offerings & Notes Filed:

Biggest Movers Up & Down Yesterday:

• Movers Up: LSCC +10.8%, NTB +7.6%, GOLF +7.3%, CMP +6.6%, CINF +4.3% of note. 
• Movers Down:  FLNC -37.7%, HLIT -32.6%,  AMKR -9.7%, ACLS -9.6%, MITK -8.3%, MEDP -6.3%, ALAB -5.1%, CXW -4.4%, INSP -4.3% of note.

News After The Close:

• Allison Transmissions (ALSN) awarded new contract to provide propulsion solution for Turkish Armed Forces next generation vehicle with $100 million.
• Select Quote (SLQT) signs $350 million strategic investment from funds managed by Bain Capital, Morgan Stanley Private Credit, and Newlight Partners.
• IonQ (IONQ) and General Dynamics (GD) information technology partner to develop quantum solutions for customers in the U.S.  
• Sam Altman in X post rejects Elon Musk’s buyout offer for OpenAI bid is $97 billion. 
• Inspire Medical Systems (INSP) discloses in Annual 10-K Filing that on January 17, 2025, it received a civil investigate demand from the Dept. of Justice U.S. Attorney’s Office for District of Minnesota pursuant to False Claims Act.
• 10K or Qs Delays – POWW of note.

Exchange/Listing/Company Reorg and Personnel News:

• EUDA CEO resigned.
• LUV appoints Tom Doxey as Executive Vice President & Chief Financial Officer effective March 10

Buybacks:

• Stocks Ex Div Today: V ASML SCCO BKR DLB JHG FBK ARCB KMT AMAL.
• Stocks Ex Div Tomorrow: XOM TGT PCAR URI KVUE TTEK LEVI BOKF OMF HOMB AROC NXST ST SASR WT WINA WLFC.

What’s Happening This Morning: (as of 8:15 a.m. EDT) Futures S&P 500 -19.50, NASDAQ -112, Dow Jones -108 and Russell 2000 -12.34. Europe is mixed with Asia mixed as well. Bonds are at 4.535% from 4.497% yesterday on the 10-Year. Crude Oil and Brent Crude are higher with Natural Gas higher as well. Gold, Silver and Copper lower. The U.S. Dollar is lower versus the Euro, lower against the Pound and higher against the Yen. Bitcoin is at $97,826 from $97,423 higher by $419 up by +0.43%.  Additional Comments:

• Daily Positive Sectors: Energy, Technology, Materials and Utilities were higher.
• Daily Negative Sectors: Financials and Healthcare of note.
• One Month Winners: All except for Technology of note.
• Three Month Winners: Communication Services, Consumer Cyclical, Financials and Technology of note.
• Six Month Winners: Consumer Cyclical, Financials, Communication Services, Technology, Utilities and Industrials of note.
• Twelve Month Winners: Technology, Communication Services, Financials, Consumer Cyclical and Utilities note.
• Year to Date Winners:   Communication Services, Materials, Financials, Healthcare and Utiltities of note.

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

• Tuesday After the Close: 

• Wednesday Before The Open:

Notable Earnings of Note This Morning:

• Gap Up: SLQT +34.7%, LSCC +14.8%, CMP +10.6%, ATSG +8.8%, MYTE +7.5%, DD +7%, GOLF +5.9%, NVNI +5.2%, CINF +4.7%, DAC +4.3%, CLF +4%, HE +3.7%, LDOS +3.7%, POWW +2.8%, STLD +2.8%, CRESY +2.8%, IONQ +2.7%, BKSY +2.5%, AGEN +2.5%, NUE +2.2%, BRX +2%, KRC +2%,of note.
• Gap Down: FLNC -37.3%, HLIT -25.8%, PETS -15%, AMKR -9.6%, CMCO -8.5%, ACLS -8.3%, SQNS -7.3%, MITK -6.5%, MEDP -6.1%, CXW -5.2%, ALAB -4.5%, MRP -4.3%, WCC -3.7%, SERA -3.6%, INSP -3.3%, HESM -3.1%, ARWR -3%, CG -2.9%, LZ -2.7%, UVV -2.2% of note.

Insider Action: BDX sees Insider Buying with dumb short selling. MDU sees Insider Buying with smart short sellers.

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

• Lead Story on Bloomberg: EU Pledges Counter Measures Against Trump’s Tariffs on Metals. (Bloomberg)
• Market Wrap: US Stock futures drop at Trade nerves spur caution. (Bloomberg)
• Stocks Making The Biggest Moves: KO SHOP SNAP FSLR. (CNBC)
• Five Things To Know Before The Market Opens. (CNBC)
• Coca-Cola (KO) tops estimates as global demand strong. (CNBC)
• Bloomberg: The Big Take: Hedge Funds pocketing much of clients gains with “no limit” fees. (Podcast)

M&A Activity and News:

• LegalZoom.com (LZ) acquires Formation Nation for $49.3 mln in cash and approximately 2.2 mln restricted shares; to be accretive to EPS in first year; projects Q4 revenue above consensus.

Moving Average Table:  Pops to 70% from 53%.

Meeting & Conferences of Note:

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.

• • • Upgrades:  RTX PTON LUV SMCI COMP 
    • Downgrades:  NET FLNC DVAX