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Check out the companies making headlines in midday trading Wednesday.
Biogen — Shares of Biogen fell more than 9% after Medicare said it would only cover the company’s controversial Alzheimer’s drug for patients who are willing to enroll in qualifying clinical trials. The company also got a downgrade from Piper Sandler to neutral from overweight.
DoorDash — Shares of the food delivery company rose slightly after Evercore raised its rating on the stock to outperform from in line. The firm cited DoorDash’s strong growth fundamentals and reasonably impressive profitability. Also on Wednesday, Meta Platforms named DoorDash CEO Tony Xu to its board of directors.
Ally Financial — Shares of the digital bank gained 2.8% after the company announced a 20% dividend increase, raising its quarterly payout to 30 cents per share. Ally also authorized a $2 billion share repurchase program.
Dish Network — The satellite TV company saw its shares climb 4.3% following a New York Post report that its in merger talks with DirecTV. The two have had periodic conversations about a potential deal for about 20 years, and the latest round is said to be pushed forward by TPG Capital, DirecTV’s minority owner.
Quest Diagnostics — Shares of Quest Diagnostics fell 6.5% even after the company reported preliminary fourth-quarter adjusted earnings of $3.33 per share. That beat a FactSet estimate of $3.07 per share. However, the company also reported that Covid testing volumes in the fourth quarter declined compared with the prior year.
T Rowe Price — T. Rowe Price shares fell 6.1% after the company reported a modest increase in preliminary assets under management, which totaled $1.69 trillion at the end of December, compared to $1.63 trillion at the end of November.
Crocs — Shares of the shoe company ticked 3.5% higher in midday trading after Piper Sandler named the stock a top 2022 pick. The Wall Street firm said it sees “impressive consumer growth” for Crocs for years to come.
Take-Two Interactive — Shares of the online gaming company added more than 3% after BMO Capital Markets lifted its rating on the stock to outperform. The basis for the firm’s bullish bet is Take-Two’s pending deal to acquire of Zynga, worth $12.7 billion. BMO said will “help smooth earnings variability while offering compelling synergy opportunities.”
PayPal — The digital payments stock fell more than 2% after Jefferies downgraded PayPal to a hold rating from buy and cut its price target. “We are incrementally more cautious on the fundamental backdrop in 2022 and believe multiple expansion potential is limited until investors can restore confidence in PYPL achieving its medium-term targets,” the firm said.
Ambarella — Shares of Ambarella shares gained nearly 3% after Wells Fargo upgraded the stock to overweight, saying the chipmaker has an attractive valuation and is a good artificial intelligence market play.
— CNBC’s Hannah Miao, Maggie Fitzgerald, Pippa Stevens and Yun Li contributed reporting