Hot Stocks: Crypto stocks rally; CINC, ALBO soar on M&A news; LULU slumps on guidance
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An early rally gave out in the middle of Monday's session, leaving the major U.S. equity averages mixed by the close. The Dow and S&P 500 finished lower, while the Nasdaq retained part of its earlier gains.
Amid the uncertain trading, crypto-related stocks showed substantial gains. A rise in Bitcoin (BTC-USD) helped names like Coinbase (COIN), Marathon Digital (MARA), Hut 8 Mining (HUT) and Riot Blockchain (RIOT).
Among individual stocks, M&A news provided a notable catalyst. Both CinCor (CINC) and Albireo (ALBO) surged on separate deals to be acquired.
On the downside, Lululemon (NASDAQ:LULU) lost almost a tenth of its value after the release of updated guidance.
Sector In Focus
An upswing in Bitcoin (BTC-USD) gave a lift to stocks related to the cryptocurrency space. The sector also received a boost from industry bellwether Coinbase Global (COIN), which rose 15% following an analyst comment from Jefferies.
While warning of potential near-term headwinds, analyst Trevor Williams argued that COIN would likely emerge from the recent crypto downturn, noting the firm's "front-footed approach to regulatory compliance." Still, Jefferies issued a Hold rating on the stock, stating that "the immediate impact" from the recent rocky crypto market "is decidedly negative with trading volumes facing incremental pressure."
Elsewhere in the sector, Marathon Digital (MARA) jumped almost 20%, Hut 8 Mining (HUT) advanced 17% and Riot Blockchain (RIOT) climbed 14%.
Standout Gainer
CinCor (CINC) skyrocketed on a deal to be acquired by AstraZeneca (AZN). Shares of the high blood pressure and kidney disease drug developer surged nearly 144%.
The buyout deal calls for a purchase price of $26 per share in cash, plus a non-tradable contingent value right of $10 per share in cash payable upon a specified regulatory submission of a baxdrostat product. This equated to a deal value of up to $1.8B, with about $1.3B coming as the upfront cash part of the consideration.
Fueled by the merger deal, CINC closed Monday's trading at $28.74, rising $16.96 on the session.
With the advance, the stock recovered a sharp drop seen in November, when the company announced that a blood pressure candidate failed in a mid-stage study. Monday's rally allowed the shares, which had hit a 52-week high of $43.15, to reach their highest close since mid-November.
Standout Decliner
Lululemon (LULU) slumped in the wake of a disappointing forecast, dropping more than 9% during the session.
While it raised its Q4 revenue forecast, the athletic apparel company also issued a narrowed earnings prediction that came in below expectations. This came amid a decline in gross margins that is now projected to be steeper than previously thought. 
Presenting at the ICR Conference, LULU predicted Q4 EPS of $4.22-$4.27, compared to its prior forecast of $4.20-$4.30. Analysts were looking for a figure of $4.30.
Hurt by the updated outlook, LULU dropped $30.60 to end at $298.66. With the decline, the stock recorded its lowest close since late October.
Notable New High
A merger deal sent Albireo (ALBO) sharply higher. With the company agreeing to be acquired by Ipsen, shares of the developer of treatments for rare diseases jumped 92% to reach a new 52-week high.
The deal included a purchase price of $42 per share in cash, or about $952M. In addition, the consideration includes a contingent value right entitling the holder of $10 per CVR payable on U.S. regulatory approval of its Bylvay product in the Biliary Atresia indication by Dec. 31, 2027.
ALBO surged $21.03 to close at $43.85. During the session, the stock reached an intraday 52-week high of $44.36.

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