Market Movers (Issue #1)
Our coverage of major stock gainers and losers.
Welcome to the first edition of Market Movers, the Due Diligence team’s periodic coverage of major stock winners and losers.
“Winners” represent stocks that recently experienced upward price momentum, while “losers” have faced downward price pressures. Note: the companies we highlight aren’t necessarily the biggest gainers or decliners from a return standpoint. Price and return data are as of 4/29/21.
Casper Sleep Inc. (CSPR) is an eCommerce company that’s obsessed with sleep. So much so that Casper dubbed itself the “Sleep Company.” In case you couldn’t infer, Casper sells beds, pillows, and other sleep-related products.
Last close price: $8.65
YTD return: 40.7%
CSPR went public last February, which was obviously rough timing. However, in 2021, shares of CSPR are up 40.7%. More recently, investor demand for CSPR surged after a Wedbush analyst issued an “Overweight” rating, representing his first bullish outlook.
Esports Entertainment Group (GMBL) is an esports (i.e. competitive gaming) and online gambling company.
Last close price: $12.30
YTD return: 93.7%
GMBL has picked up steam in 2021, appreciating 93.7% so far this year. The company has formed strategic partnerships with NFL teams (such as the Denver Broncos and New England Patriots). Plus, it raised $30 million through a direct offering on Nasdaq back in February. On Tuesday, the momentum continued when GMBL got a major boost from H.C. Wainwright’s initial “Buy” rating and price target of $20.
Novavax, Inc.(NVAX) is a Maryland-based vaccine development company. Unless you live under a rock, you know it’s a good time to be in the vaccine development business.
Last close price: $237.53
YTD return: 113.0%
If you owned Novavax prior to 2021, congratulations — because its share price has more than doubled this year. That momentum continued on Tuesday when NVAX shares jumped out of the gym after President Biden mentioned the company’s COVID-19 vaccine is nearing emergency-use authorization.
Qell Acquisition Corp (QELL) is a publicly traded special purpose acquisition company (SPAC), which Due Diligence readers should be familiar with. Qell is set to merge with Lilium, an aviation startup based in Germany that creates electric-powered vertical takeoff and landing (eVTOL) aircraft. This market is still very much in its infancy with a lot of hurdles ahead (here’s a breakdown).
Last close price: $9.91
YTD return: -19.4%
Although it’ll be a reverse merger (meaning Lilium will become the publicly traded entity), shares of QELL are down nearly 20% so far this year. The driver appears to be a mix of (1) declining investor sentiment since the eVTOL industry as a whole faces major challenges and (2) open investigations by Monteverde & Associates PC and Rigrodsky Law, P.A. into whether QELL breached its fiduciary duties.
Fortuna Silver Mines(FSM) is a Canadian silver mining company with two active mines (in Peru and Mexico) and another under construction in Argentina.
Last close price: $6.06
YTD return: -26.5%
It’s been a rough year for FSM, as its share price has plummeted by 26.5% — despite relatively stable silver prices. However, it’s been an even rougher week. Earlier this week, the company announced the acquisition of Roxgold, a Canadian precious metals miner, for an estimated 40% premium. As is common with acquisitions, investors sold FSM and flocked to Roxgold, leading to a 15% early morning dip for Fortuna on Monday.
Tesla, Inc. (TSLA) hardly needs an introduction. The electric vehicle and clean energy company has maintained a steady presence in headlines (and investor portfolios) for years now. In 2020 alone, shares of TSLA rose more than 740%. So, why does Tesla find itself in our “Losers” section?
Last close price: $677.00
YTD return: -4.06%
Well, TSLA is down 4.06% in 2021 — and expectations for the EV-maker are stratospheric. The latest share price decline is a result of mixed analyst ratings, which came about after the company’s latest operating profit fell short of projections. Tesla beat earnings estimates, but the operating profit miss supplied fresh ammunition to the company’s haters. Goes to show, having incredibly high expectations across the board leaves very little room for error.
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