Yahoo Finance is tracking Herbalife, Finish Line, Foot Locker and Nike in intraday trading on Monday.
Herbalife announces talks to go private and a new share buyback plan
Herbalife (HLF) shares are getting a boost after the company said that it would repurchase up to $600 million of its outstanding common shares priced between $60 and $68 per share. Investors are also paying close attention to two other announcements from Herbalife Monday morning. The supplements company unveiled that it had ended talks with an unnamed investor to take the company private and said that it had come to an agreement with billionaire investor Carl Icahn to keep his stake in Herbalife below 50% unless he makes a move to buy 100% of the company. Shares are up 10.8% as on 12:30 pm ET Monday.
UBS downgrades Foot Locker and Finish Line
UBS issued two cautious calls on Monday. The company slapped a sell rating on Finish Line (FINL) and lowered its rating on Foot Locker (FL) to neutral from buy. The downgrades follow Foot Locker’s ‘sobering second quarter.’ Analyst Michael Binetti said Foot Locker’s weak quarterly report make it ‘much tougher to support a thesis that athletic retailers will be able to sidestep emerging structural challenges.’ He also cited competition from Amazon and the need to accelerate store closures as two headwinds facing both Foot Locker and Finish Line.
Jefferies downgrades Nike, cites ‘intensifying US competition’
Jefferies downgraded Nike (NKE) to hold from buy, citing ‘intensifying US competition’ from one of its main competitors, Adidas. The downgrade sent shares of Nike lower in intraday trading Monday. Analyst Randal Konik wrote in a note to clients that “with expectations for less robust fundamentals, NKE’s premium valuation conflicts with intensifying US competition unfolding.” He pointed to increased web traffic on Adidas’ site and rising popularity of Adidas shoes in the secondary sneaker market as challenges for Nike.
For more on Mondays’ big stock movers, check out The Final Round, starting at 3:55 p.m. ET, right here on Yahoo Finance.