Hot Stocks: GLBE jumps on earnings; AN, PAG reach 52-week highs; NOVA, TRMR plunge

Shares ended Tuesday’s trading with a mixed performance. The Nasdaq fell while the Dow and S&P 500 contributed to their recent gains.

Despite the uncertain action, the auto dealers’ stocks experienced solid buying interest. Strengthened by the industry strength AutoNation (AN) and Penske Automotive Group (PAG) each hit 52-week highs.

Among individual stocks, Global-E Online (GLBE) was a standout performer, up almost a quarter on the release of a strong quarterly update.

Let’s turn to some of the day’s standout losers, Sunnova (NYSE:NOVA) posted a double-digit percentage decline following the announcement of a convertible bond offering. Meanwhile, Tremor International (TRMR) tumbled more than 20% to hit a new 52-week low after the release of its quarterly update.

Outstanding Winner

Global-E Online (GLBE) rose sharply following its Q2 report. With strong results and updated guidance, shares of the shipping and payments solutions provider surged 24%.

The company reported revenue that was up 52% ​​year over year. Meanwhile, the gross merchandise value increased by 64%.

Looking ahead, GLBE forecast sales of between $406 million and $426 million. This was well above the $390 million that analysts had forecast.

GLBE raised $6.66 to $34. The recent gains contributed to an upleg that began in mid-July as the stock steadily recovered from a 52-week low of $15.63.

With Tuesday’s surge, GLBE posted its highest close since early April.

Outstanding Decliner

The announcement of a convertible bond triggered selling in Sunnova (NOVA). Shares in the residential solar company fell nearly 12% amid fears of potential dilution for current shareholders.

The company announced that it will be offering $425 million in convertible debentures due 2028. The transaction will be through a private placement, including an option to purchase additional $75 million of the Notes.

NOVA closed at $26.34, down from $3.44 on the day. The slide in price pared some of the gains made over the past few weeks, taking the stock off a closing 2022 high of $29.78 set on Monday.

Notable new high

Auto dealer names saw strength on Tuesday amid a general appetite for consumer discretionary stocks as investors continued to bet on the Federal Reserve’s ability to pull off a soft landing. The surge built on recent gains in the group, sending AutoNation (AN) and Penske Automotive Group (PAG) to new 52-week highs.

AN rose $8.79 to $132.49 after hitting a 52-week intraday high of $135.57. Meanwhile, PAG hit a 52-week intraday high of $126.93 before closing at $124.16. This represented a daily increase of $6.60.

Elsewhere in the sector, Carvana (CVNA) is up 7%, while Vroom (VRM) is up 16%.

Notable new low

A disappointing earnings report sent Tremor International (TRMR) to a fresh 52-week low. Shares fell 22% on the day.

The advertising technology company announced earnings that fell year-on-year and missed the amount analysts had been forecasting. Revenue also fell, falling 7% to below $76 million.

In a comment accompanying its quarterly update, the company highlighted “key steps to continue scaling and differentiating our business.” However, it also acknowledged “persistent macroeconomic challenges” and “persistent market headwinds”.

TRMR fell $2.35 to close at $8.06. Shares closed just above a 52-week intraday low of $8.01 set during the session.

The stock had been climbing higher in the weeks leading up to the earnings report. With the most recent decline, TRMR is down 43% in 2022.

To see more of Wall Street’s top and worst performing stocks, head over to Seeking Alpha’s On The Move section. Hot Stocks: GLBE jumps on earnings; AN, PAG reach 52-week highs; NOVA, TRMR plunge

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