Hot Stocks: SOFI warning; STZ, LW rise on earnings; CDK jumps on takeover deal

SoFi Technologies (NASDAQ:SOPHIA) posted a double-digit percentage slide in Thursday’s midday trading, dragged down by lowered guidance.

Meanwhile, earnings-related news had the opposite impact on Constellation Brands (STZ) and Lamb Weston (LW). Both rose following the release of their respective earnings reports.

At the same time, CDK Global (CDK) rallied after announcing a deal to be acquired.

Decliner

SoFi Technologies (SOFI) showed substantial midday weakness after cutting its 2022 guidance in the wake of another extension of the moratorium on student loan payments. Shares plunged nearly 13% on the news.

The fintech said that it now expects 2022 adjusted net revenue of $1.47B, below the $1.57B that it had previously predicted. Analysts were projecting a figure of around $1.55B.

gainers

Constellation Brands (STZ) received a boost from better-than-expected earnings and a raised dividend. Revenue rose nearly 8% from last year, reaching $2.1B.

Based on the results, STZ climbed 4% in intraday action.

The release of quarterly results also gave a lift to Lamb Weston (LW). The company reported a quarterly profit that topped expectations by almost 70%.

For 2022, the food processing company predicted net sales growth above its long-term target, which calls for a percentage expansion in the low-to-mid single digits. The stock rose more than 7% on the news.

CDK Global (CDK) represented another substantial gainer in midday action, boosted by news that the company has agreed to be acquired by Brookfield Business Partners. The deal calls for a purchase price of $54.87 per share in cash.

CDK said the purchase is slated to close in Q3. Shares of the provider of data and technology for car dealers rose 11% on the news.

For more on the day’s best- and worst-performing stocks, head over to Seeking Alpha’s On The Move section.

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