Hot Stocks: UPST Plunges on Warning; SRG skyrockets to 80%; GBX beats earnings

Stocks ended Friday’s session with a mixed performance as investors reacted to the latest jobs data with uncertainty. The S&P 500 snapped a four-game winning streak with a slight setback, while the Nasdaq notched its fifth straight day of earnings.

While the major averages generally hovered near the flatline, Seritage Growth Properties (SRG) saw a massive rise during the session. Shares soared on a proposed plan to sell the company’s assets and distribute the proceeds to shareholders.

Meanwhile, H&R Block (HRB) continued its recent bullish momentum. The stock, which has soared more than 50% in less than two months, hit a new 52-week high.

Looking at some of the most notable decliners of the day, Upstart (NASDAQ: UPST) plunged after warning that its quarterly results would fall below expectations. Meanwhile, Greenbrier (GBX) hit a 52-week low ahead of the earnings release next week.

Outstanding Winner

The release of details surrounding a proposed plan to sell the company sent Seritage Growth Properties (SRG) up sharply. The stock jumped 80% amid the filing of proxy documents ahead of its 2022 general meeting of shareholders.

The documents included a recommendation from SRG’s board of directors that shareholders approve a draft plan to sell the company’s assets, as well as a dissolution. Under the proposal, the real estate investment trust would sell its assets and distribute the proceeds to shareholders, thereby dissolving the company.

SRG ended Friday’s trading at $10.96, a $4.89 lead on the session. This marked its highest close since April, following a 52-week low of $4.90 set in late June.

Outstanding Loser

Upstart (UPST) suffered a sell-off after the company warned its second-quarter loss would be bigger than it previously thought. Shares plunged 20% on the day.

The IA lending platform said it now expects a second-quarter loss of $27 million to $31 million. Previously, the company posted net income between break-even and a loss of $4 million.

UPST blamed the results on a “constrained funding” market and rising interest rates, which negatively impacted its revenue as it sought to convert loans from its balance sheet into cash.

Based on the warning, UPST lost $6.65 to end the session at $27.09. Shares have fallen nearly 32% in the past month and more than 80% so far in 2022.

Notable new peak

H&R Block (HRB) extended a rally that began with the release of its latest earnings release in May. Shares climbed another 2% on Friday to hit a new 52-week high.

HRB ended the session at $37.27 after hitting a 52-week intraday high of $37.65. The closing price was 82 cents ahead of the previous day’s close.

Shares jumped nearly 20% after a better-than-expected earnings report came out in the first half of May. The upward momentum has continued over the past few weeks, with the stock now up 57% since its closing price the day before the last quarterly release.

New notable low

Ahead of its quarterly earnings report, due out early next week, Greenbrier (GBX) added to a long-running downtrend, dropping 4% on Friday to record another low. of 52 weeks.

The manufacturer of maritime barges and freight railcars is due to announce its latest financial figures on Monday. Analysts expect the company’s profits to fall nearly 15% from a year ago, even as its revenues are expected to rise.

The stock hit a 52-week high of $53.46 in late March, but has been losing ground ever since. In Friday’s trading, shares fell $1.44 to close at $32.62. GBX also recorded a 52-week intraday low of $32.29.

With the latest retreat, GBX is now down about 40% since peaking.

Looking for more of the day’s biggest winners and losers? Go to the On The Move section of Seeking Alpha.

Garland K. Long