Hot Stocks: SAVE rises on raised JBLU bid; DOC climbs as CEO leaves; bullish note on PLTR; DVA falls

view original post

A high-profile bidding war in the airline industry received significant attention in Tuesday’s midday trading. Spirit Airlines (NYSE:SAVE) was boosted by a sweetened takeover bid from Jetblue (JBLU).

DocuSign (DOCU) also posted a midday gain, bolstered by a surprise leadership change at the company. Meanwhile, Palantir (PLTR) pushed higher thanks to a bullish analyst comment.

Looking to the downside, DaVita (DVA) was among the day’s standout decliners. Shares dropped following an unfavorable Supreme Court ruling.

Gainers

Spirit Airlines (SAVE) saw midday strength after receiving an increased takeover offer from Jetblue (JBLU). The new bid has a purchase price of $33.50 per share, up from JBLU’s previous offer of $31.50 per share.

The proposal includes $32 in cash at closing for each share of SAVE stock, as well as a $1.50 per share prepayment. SAVE still has a merger deal pending with Frontier Group (ULCC).

Bolstered by the ongoing bidding war, SAVE has climbed about 8% in intraday action. JBLU was fractionally lower, while ULCC climbed about 3%.

In other news, investors cheered a leadership change at DocuSign (DOCU). CEO Dan Springer has left the company, effective immediately, with board chair Mary Wilderotter taking over the chief executive role on an interim basis.

The unexpected departure followed disappointing earnings released earlier this month. In announcing the leadership change, DOCU said Springer “agreed to step aside,” without providing many additional details. Shares rose about 4% in midday trading on the news.

Elsewhere, Palantir (PLTR) also drew intraday buying interest, rising nearly 9% after receiving a bullish rating from Bank of America. The firm initiated coverage of the data analytics software company with a Buy rating, arguing that PLTR will see rapid growth in demand for AI platforms.

Decliner

DaVita (DVA) dropped about 10% in midday action, dragged down by an unfavorable legal turn. The Supreme Court ruled against the dialysis provider in a case dealing with payer reimbursements for kidney dialysis.

In a lawsuit against Marietta Memorial Hospital, the court ruled against DVA’s claims that policies at the health facility discriminated against patients with end-stage renal disease. The ruling also weighed on shares of Fresenius Medical Care (FMS), which fell more than 7% on the news.

To keep track of Wall Street’s biggest winners and losers throughout the session, head over to Seeking Alpha’s On The Move section.

Related Posts