Home News VF Corp. Soars as Activist Investor Gains Support

VF Corp. Soars as Activist Investor Gains Support

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Key Takeaways

  • The S&P 500 slid less than 0.1% on Monday, Feb. 12, 2024, remaining relatively flat ahead of Tuesday’s Consumer Price Index (CPI) report.
  • Shares of Motorola Solutions dropped after the communications equipment firm issued a lower-than-expected 2024 profit forecast.
  • VF Corp. shares skyrocketed following reports that the family that founded the clothing conglomerate would support initiatives by activist investor Engaged Capital.

Major U.S. equities indexes were mixed to open the trading week, with Tuesday’s release of Consumer Price Index (CPI) data and additional corporate earnings reports on the horizon.

The S&P 500 fell 0.1%, failing to build on Friday’s record-setting close but remaining above the historic 5,000 level. With a gain of 0.3%, the Dow did manage to achieve a new all-time high. Meanwhile, the Nasdaq closed the session 0.3% lower.

Shares of Motorola Solutions (MSI) slid 3.3%, marking Monday’s weakest performance on the S&P 500. Despite last week’s earnings report showing stronger-than-expected sales and profits for the fourth quarter, the telecommunications equipment provider’s adjusted profit guidance for 2024 came in below expectations.

After opening the day higher, shares of enterprise cloud computing firm ServiceNow (NOW) closed the session with a loss of 3.2%. Although the stock has gained more than 14% so far in 2024 amid enthusiasm about ServiceNow’s potential to help companies automate their operations and improve sales, recent reports have shown company insiders unloading shares.

Monolithic Power Systems (MPWR) shares fell 3.0%, reversing some of the massive gains posted late last week after the provider of power management devices reported strong quarterly results and issued an upbeat 2024 forecast. Analysts suggested recent advances in the share price may be misaligned with the company’s revenue trajectory.

VF Corp. (VFC) topped S&P 500 stocks following reports that activist investor Engaged Capital had secured support from the clothing firm’s founding family to implement changes. Shares of the company, which owns Vans, The North Face, and other apparel brands, skyrocketed 14.0%.

Shares of Diamondback Energy (FANG) jumped 9.4% after the oil and gas company announced plans for a merger with Endeavor Energy Resources in a deal worth $26 billion. The latest in a string of activity in the energy sector, the deal would expand the company’s position in the Permian Basin, the top-producing oilfield in the U.S.

Mohawk Industries (MHK) shares added 6.6% after the flooring manufacturer’s full-year earnings per share (EPS) for 2023 exceeded expectations, benefitting from lower input costs and measures to improve productivity. Analysts at Deutsche Bank upgraded Mohawk stock to Buy and lifted their price target to $152, citing the potential for enhanced efficiency to drive additional profit growth.

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