Some of the most active stocks of the day include:
GrubHub Inc. (GRUB)
It appears bargain hunters are all over GRUB this morning. A day after the stock gapped from $60 to $35, the stock is up $3.30 on the day on volume of 10 million shares. Average daily volume is typically 3.16 million. All after bad earnings, and a Goldman Sachs downgrade to neutral from buy. The firm also cut its price target to $30 from $86 a share.
“We signiﬁcantly underestimated the impact of competitor investments on customer behavior across the space while overestimating both the potential for industry-wide growth and Grubhub’s ability to maintain share,” Goldman wrote, as quoted by CNBC.
“We believe the likelihood of near-term outperformance as management implements this new strategy is low given the high degree of uncertainty and competition.”
Shares of Mattel are back in the headlines after great earnings and on news it’s putting its accounting investigation behind it.
After the bell last night, the company said it earned 26 cents a share on sales of $1.48 billion. Analysts were looking for 19 cents on $1.44 billion in sales. The company also completed an independent investigation into accounting allegations from a whistleblower in August 2019.
“The errors were noncash, did not affect operating income or EBITDA [earnings before interest, tax, depreciation, and amortization], and had no impact on Mattel’s full-year financial results for 2017 or subsequent periods,” the company said its news release, as quoted by Barron’s.
General Electric (GE)
Shares of GE are ripping higher this morning after earnings.
Adjusted EPS came in at 15 cents, as compared to forecasts for 11 cents. Total revenue came in at $23.26 billion, as compared to forecasts for $22.93 billion.
“Our results reflect another quarter of progress in the transformation of GE. We are encouraged by our strong backlog, organic growth, margin expansion, and positive cash trajectory amidst global macro uncertainty,” CEO Larry Culp, as quoted by Yahoo Finance.