Check out the companies making headlines in midday trading.
Upstart — The consumer lender’s shares tumbled by more than 20% after the company issued a profit warning saying it will not meet already-reduced financial targets for its second quarter, pointing to a constrained lending marketplace and moves to convert loans to cash. JMP also downgraded the stock citing “limited revenue visibility” going forward.
Vita Coco — Shares of beverage company Vita Coco surged 16% when Bank of America upgraded the stock to buy and raised its price target. The firm said that a stabilizing ocean freight marketplace should drive down costs and help boost the company’s earnings in the years to come. In addition, Bank of America sees Vita Coco as solidly positioned to withstand a potential recession.
WD-40 — The lubricant maker’s shares slid 12% after the the company reported weaker-than-expected quarterly earnings. WD-40 Chairman and CEO Garry Ridge cited a “challenging macroeconomic environment” and rising inflation as pressuring gross margins for the company.
XPO Logistics — Shares of freight company XPO Logistics jumped nearly 2% after Morgan Stanley upgraded the stock to overweight from equal weight. The bank considers XPO Logistics a buying opportunity now that shares have dropped 35% year to date.
Spirit Airlines — The airline company’s shares added more than 3% after Spirit Airlines postponed yet another shareholder vote on its plan to merge with Frontier Group. It is the third time Spirit delayed a vote, as Frontier Group and JetBlue Airways compete in a bidding war for the airline company.
Tesla — Tesla’s shares gained more than 1% following a report from the China Passenger Car Association that showed Tesla sold a record number of China-made vehicles. Tesla sold 78,906 China-made vehicles in June, compared to 32,165 vehicles in May.
GameStop — Shares of the video game retailer fell more than 5% a day after the company said it has fired its chief financial officer, Mike Recupero, and is making staff cuts across departments as part of an aggressive turnaround plan. CEO Matt Furlong explained the changes in the memo to employees and said the company has to take bold steps as it invests in its digital future.
Six Flags Entertainment — Shares of Six Flags declined more than 6% after Citi downgraded the stock to neutral from buy, and cut the price target to $26 from $41. Citi cited falling attendance numbers against rising inflation.
— CNBC’s Yun Li, Tanaya Macheel and Carmen Reinicke contributed reporting
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