Biggest stock movers today: Cisco, Broadcom, FedEx, and more
Boy Wirat
Stock futures fell on Thursday after the FOMC's revised dot plot continued to suggest longer-term higher rates.
Here are some of Thursday's biggest stock movers:
Biggest stock gainers
Splunk (NASDAQ:SPLK) shares jumped more than 20% after Cisco (NASDAQ:CSCO) announced plans to acquire the cybersecurity company for $28B or $157 per share in cash, a 31.9% premium to its Wednesday's closing price. Cisco anticipates the deal to be cash flow positive and gross margin accretive in the first fiscal year, boosting recurring revenue and adding to adjusted earnings per share in the second year. Meanwhile, Cisco slumped 4%.
FedEx (NYSE:FDX) shares surged roughly 5% after topping the consensus mark in Q1 profit and raising the FY2024 outlook. The company now anticipates flat revenue Y/Y as compared to the prior forecast of flat to low-single-digit-percent revenue growth and adjusted EPS between $17 and $18.50, compared to the prior forecast of $16.50 to $18.50 and consensus of $17.79.
Biggest stock losers
W.P. Carey (NYSE:WPC) slipped over 6% after it announced plans to sell over half of its office properties and create a separate publicly traded REIT. The REIT will spin off 59 properties into a new REIT Net Lease Office Properties (NLOP) and begin an asset sale program for 87 properties. The spinoff is expected to close by November 1, 2023, and the asset sales program will be completed by January 2024. NLOP will assume $169M of existing mortgage debt.
Shares of Broadcom (NASDAQ:AVGO) fell over 6% on a report that Google is considering dropping the company as a supplier of AI chips as early as 2027, which according to CNBC's Jim Cramer is "patently false." The company and its affiliates were also fined 19.1B won ($14.3M) by South Korea's Fair Trade Commission for forcing a disadvantageous supply deal with Samsung Electronics. The contract, which required Samsung to purchase $760M worth of chips from Broadcom from 2021 to 2023, was terminated in August 2021 due to unfair clauses.
Transcat (TRNS) shares tumbled 11% after the company priced its public offering of 736,845 shares of its common stock at $95/share, with net proceeds expected to be around $65.2M. The company plans to use the proceeds to repay its credit facility with Manufacturers and Traders Trust Company, for working capital, and other corporate purposes. The underwriters have a 30-day option to purchase up to 110,526 additional shares. The offering is expected to close on September 25, 2023.
After an impressive debut, the stock price of marketing automation platform Klaviyo (NYSE:KVYO) dropped around 4% in Thursday's premarket trade. The share price of the stock increased by as much as 32% on Wednesday before declining to end the day 9.2% higher at $32.76. The IPO, which raised ~$345M at a price of $30 per share, opened at $36.75 per share.

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