Hot Stocks: ADI leads chip stocks lower; SAVA spikes; DNUT drops on earnings; PGR new 52-week high
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Stocks slipped on Wednesday following the release of anemic retail sales statistics, as investors took profits following a recent upswing. With the retreat, the Dow broke a five-session winning streak.
Amid the overall decline, semiconductor stocks came under particular pressure. Analog Devices (NASDAQ:ADI) dropped after its quarterly report, weighed down by an increase in customer cancellations. The news prompted pullbacks elsewhere in the sector, including losses in names like Texas Instruments (TXN) and Nvidia (NVDA).
Elsewhere, Krispy Kreme (DNUT) was another standout decliner. Earnings news prompted a double-digit percentage decline in the stock.
Meanwhile, U.S. Physical Therapy (USPH) extended the losses it posted earlier this month in the wake of its quarterly report, sliding to a fresh 52-week low.
Looking to the upside, Cassava Sciences (SAVA) jumped on news of insider buying. At the same time, Progressive (PGR) rode monthly performance statistics to a new 52-week high.
Sector In Focus
A disconcerting update from Analog Devices (ADI) put pressure on the semiconductor sector. While the company issued strong numbers in its latest quarterly report, it also noted signs that customers might be pulling back on their orders.
The company beat expectations with its Q3 results and revealed a generally upbeat financial forecast. However, ADI also stated that it has seen an uptick in customer cancellations amid "economic uncertainty."
ADI dropped about 5% on the news. The warning also spurred selling among some of the firm's big-name peers. Texas Instruments (TXN) dropped almost 4%, while Nvidia (NVDA) retreated nearly 3%.
Standout Gainer
Cassava Sciences (SAVA) soared 27% on news that a company insider has made a larger purchase of company stock. With the advance, shares recorded their highest close in more than a month.
In an SEC filing, company director Sanford Robertson, principal of technology buyout fund Francisco Partners, revealed that he had purchased an additional 100K SAVA shares. This brings Robertson's total holdings to about 1M shares.
Separately, company CFO Eric Schoen disclosed that he has purchased 2.5K shares.
SAVA spiked on the news, at one point showing an intraday gain of more than 70%. Shares moderated significantly from there but held a gain of $5.51 into the close. The stock ended trading at $25.72.
With the advance, the stock recorded its highest close since early July.
Standout Decliner
Krispy Kreme (DNUT) retreated in the wake of a disappointing earnings report and a reduced forecast. Shares dipped 12%, as higher costs offset organic sales growth.
The donut maker reported organic sales that climbed 9% compared to last year. However, increased expenses ate into the bottom line. Operating income dropped nearly 18%, while adjusted EBITDA retreated 10%.
Looking ahead, DNUT predicted full-year revenue of $1.49B to $1.52B. Previously, the firm projected a figure between $1.53B and $1.56B. Analysts were looking or a top-line total of around $1.56B.
Hurt by the quarterly update, DNUT finished at $12.76, a decline of $1.76. The slide reversed gains posted in late June, taking the stock back to the low end of a broad trading range that has held it for months. Even with the decline, the stock remains off a 52-week low of $11.98.
Notable New High
Monthly performance statistics prompted buying in Progressive (PGR). The stock rose another 4%, adding to recent gains and setting a fresh 52-week high.
The insurance provider said July net premiums written rose 8% from last year. Net premiums earned climbed 9%. At the same time, the firm reported that policies in force were flat with last year.
PGR advanced $4.59 to close at $127.06. The stock finished just off an intraday 52-week high of $127.42 reached during the session.
Shares have been rising steadily since mid-July, climbing about 15% since their closing price on July 18. Overall, PGR has advanced nearly 25% so far in 2022.
Notable New Low
U.S. Physical Therapy (USPH) added to a recent retreat, falling another 4% on the session. The slide took the stock to a new 52-week low.
Early this month, shares of the operator of outpatient physical therapy facilities plunged after the company reported disappointing earnings and revenue. Meanwhile, the firm revised its guidance in the face of cost pressures.
The stock cratered 27% on August 4. The downward pressure has continued in fits and starts since. This included a further slide on Wednesday, with shares dropping $3.41 to close at $83.49. 
During the day, USPH reached an intraday 52-week low of $81.72. The stock had set a 52-week high of $131.50 in the days prior to the release of its earnings report. Shares have plunged nearly 37% since that peak.

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