In premarket trading, several companies made significant moves that caught the attention of investors. KeyCorp, a regional bank based in Cleveland, saw its shares increase by 18% after it announced a minority investment from The Bank of Nova Scotia. This deal gives Scotiabank a 14.9% stake in KeyCorp’s common stock for around $2.8 billion in cash. Starbucks also saw a bump in its stock price, with shares rising by 2.2% after The Wall Street Journal reported that activist investor Starboard Value had taken a stake in the coffee chain in an effort to boost its value.
Eli Lilly, a pharmaceutical company, saw its stock price go up by 1.4% following an upgrade from Deutsche Bank to buy from hold. The bank highlighted Eli Lilly’s recent earnings beat and described the stock as a “low beta/high growth” unicorn. On the other hand, JetBlue Airways experienced a decline of nearly 6% after announcing plans to offer $400 million of convertible senior notes due in 2029. Hawaiian Electric Industries also saw a significant drop in its stock price, falling by almost 10%. The company stated that it does not yet have a financing plan for a $1.71 billion Maui windstorm and wildfire settlement and reported a consolidated net loss of $1.30 billion in the second quarter.
Robinhood, an online brokerage, saw its stock price increase by more than 1% following an upgrade to overweight from neutral by Piper Sandler. The firm believes that Robinhood will benefit in the long term from continued growth in global retail and derivatives trading, as well as from the generational wealth transfer from baby boomers to their children. However, Qualcomm experienced a decrease of more than 1% after Wolfe Research downgraded the chipmaker to peer perform from outperform. The firm pointed out that Apple using its own internal modem will have an impact on Qualcomm and that the growth in premium Android devices may be more challenging to sustain.
Overall, the premarket trading activity of these companies reflected a range of positive and negative developments that influenced their stock prices. KeyCorp and Starbucks both received boosts in their stock prices, while Eli Lilly benefited from a positive upgrade from Deutsche Bank. On the other hand, JetBlue Airways and Hawaiian Electric Industries experienced declines as a result of their announcements and financial reports. Robinhood’s stock price increased following an upgrade from Piper Sandler, while Qualcomm’s stock price decreased after a downgrade from Wolfe Research. Investors will continue to monitor these companies and their performance in the market in the coming days.
