HDG Volume Surges as Bloom Energy, Sterling Slide

ProShares Hedge Replication ETF (HDG) has seen unusual trading volume, which is 15× higher than its average daily volume.

Among HDG’s holdings, Bloom Energy is under pressure after reports of institutional selling and a sharp price-target cut from Jefferies, which have overshadowed the positive signal from its new CFO appointment. Fabrinet, Kratos Defense & Security, and Sterling Infrastructure are all sliding as investors reassess rich valuations, with Sterling also hit by insider selling from its CEO and a rating downgrade on valuation grounds. Advanced Energy Industries is a relative bright spot, as Baird raised its price target and reiterated an Outperform rating, arguing that sector fundamentals and limited Middle East exposure support viewing the recent pullback as a buying opportunity.