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Hot stock: CRM sets new 52-week low; VFC plunges; Internally purchased IOVA; SJW increased


Increased caution ahead of next week’s Federal Reserve meeting sent stocks plummeting on Monday. The S&P 500 fell 1.8%, reversing some of the gains announced mid-week.

Looking at individual stocks, Iovance (IOVA) surged on news of an insider purchase, generating a double-digit percentage gain. Meanwhile, SJW Group (SJW) received a boost from being included in the S&P index, sending stocks to new 52-week highs.

On the other hand, VF Corp. (VFC) plummeted due to lowered prospects and retirement of the CEO. At the same time, Salesforce (NYSE:CRM) added to recent weakness as another key leader left, falling to a 52-week low.

Prominent bullies

News of insider buying boosted Iovance’s profits (IOVA). Shares of the biopharmaceutical startup jumped 17% after a member of its board bought a large chunk of the company’s stock.

According to a regulatory filing, director Wayne Rothbaum, president of Quogue Capital LLC, bought in total with $65 million worth of IOVA shares. As part of this, Rothbaum added 10 million shares to its IOVA holding, at $6.50 a share.

IOVA ended trading at $8.03, up $1.19 on the day. Shares closed below $6 last week. Even with the recent bounce, stocks are still 58% lower for 2022, well away from a 52-week high of $20.6.

Prominent denizen

VF Joint Stock Company (VFC) lost land after the company reduce prediction for 2023 and announced key leadership changes. The stock fell more than 11% on the news.

The footwear and clothing maker said it now sees revenue for the second half of 2023 “slightly lower than previously planned”. The company, which owns the Vans and Timberland brands, blamed “the impact of weaker-than-expected consumer demand on its categories, primarily in North America.”

In addition, VFC also announced the retirement of CEO Steve Rendle. Benno Dorer, a member of the company’s board of directors, has been appointed interim chairman and chief executive officer while the company searches for a permanent replacement.

Pulled down by the news, VFC ended Monday’s trading at $29.51, down $3.71 on the day. Slide reversed gains announced late last month, with the stock falling to its lowest close since Nov.

Remarkable new high

Driven by its inclusion in the closely watched S&P index, the SJW Group (SJW) increased by nearly 7%. This rally has added to recent gains, sending the stock to a new 52-week high.

The rally plays out like SJW will join S&P SmallCap 600. Stocks typically rise on news that they will participate in an important index, as funds tied to that index need to buy shares.

Shares of the water and wastewater supply company rose $5.19 to close at $79.58. Shares also hit a 52-week intraday high of $80.11.

SJW is up nearly 14% in the past week, contributing to a rally that has lasted since late September. The stock is up 38% since its closing price on September 27.

This reversed losses seen earlier in the year. With the latest increase, SJW is now 9% higher for 2022 overall.

Notable new lows

Sales force (CRM) was pushed lower following the news of the departure of another key executive. The stock fell more than 7% in trading, extending its recent slide to a new 52-week low.

The enterprise software maker revealed that Stewart Butterfield, the head of Slack, is leaving the company. CRM completed a $27 billion acquisition of the workplace messaging company in August 2021.

CRM dropped $10.64 to close Monday’s trade at $133.93. During the session, the stock hit a 52-week intraday low of $132.88.

Last week, stocks fall following the announcement that the company’s co-CEO Bret Taylor would be leaving. The news sent shares down 8% on Thursday, with a further drop of nearly 2% on Friday.

CRM is now down 12% in the past week. By 2022, the stock is down about 48%.

Looking for more of the best and worst performing stocks of the day? Go Looking for Alpha’s On The Move part.

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