Monday’s Pre-Market: Here’s What You Need To Know Before The Market Opens

U.S. stock futures surged in Monday’s pre-market trading session on the back of encouraging vaccine developments which bolstered hopes for an economic recovery in 2021. Looking to extend its two-week winning streak, futures tied to the S&P 500 gained 0.6%. As for Dow Jones and Nasdaq 100 futures, they advanced 0.6% and 0.4%, respectively.  

AstraZeneca announced that its coronavirus vaccine candidate, which it is developing as part of a collaboration with Oxford University, has shown an average efficiency of 70% and met the primary endpoint of preventing COVID-19. The company disclosed “positive” high-level results from an interim analysis of clinical trials evaluating its candidate, AZD1222, in the UK and Brazil, which showed no hospitalizations or severe cases of the disease in participants receiving the vaccine. CFRA analyst Wan Nurhayati recently reiterated a Buy rating on the stock with a $61 price target as she believes that the company’s new therapies will drive significant upside in 2020. 

Shares of Precision BioSciences jumped 10.7% on November 20 as the biotechnology company announced a research collaboration and exclusive license agreement with Eli Lilly to utilize Precision’s ARCUS genome editing platform for the research and development of potential in vivo therapies for genetic disorders. The initial focus of the partnership will be on Duchenne muscular dystrophy (DMD) and two other undisclosed gene targets. After the news broke, William Blair analyst Raju Prasad, who has a Buy rating on Precision, stated, “We view the collaboration positively as it removes the company’s immediate financial overhang and will expand the utility of ARCUS without taking away from the core focus of the company… Updated data set from PBCAR0191 remains a key near-term catalyst for shares and will answer questions raised by the company’s initial data presented at 2019 ASH.” 

Avrobio, however, fell 17.6% on Friday November 20 after the clinical-stage gene therapy company kicked off a secondary offering of 5 million common shares. The offering is expected to close on November 24, and is priced at $15 per share, 7.2% higher than Friday’s closing price of $13.99. According to management, the gross proceeds from the offering will be roughly $75 million. A few days before, Mizuho Securities analyst Difei Yang raised the stock’s price target to $43 from $35 and reiterated a Buy rating, arguing she increased the price target “on greater probability of success in two clinical programs (Cystinosis and Gaucher).” She adds that she continues to see “significant value” in AVRO. 

In dividend news, Nike increased its quarterly cash dividend by 12% to $0.275 per share, up from $0.245. The company’s new dividend will be paid on December 29 to shareholders on record as on December 7. This marks Nike’s 19th consecutive year of dividend hikes, with the dividend amounting to $1.10 annually and offering a yield of 0.83%. “This dividend increase reflects NIKE’s financial strength and strong track record of returning capital to shareholders while continuing to invest in capabilities that will accelerate our digital transformation and fuel long-term profitable growth,” CEO John Donahoe commented. 

Patrick Industries also gave its dividend a 12% boost, with its quarterly dividend now coming in at $0.28. This reflects a dividend yield of 1.8%. CEO Andy Nemeth said, “In alignment with our capital allocation strategy, the decision to increase the dividend reflects the continued confidence of both management and the Board in the Company’s strategic and financial position and the strength of our cash flows, and represents our ongoing commitment to increasing long-term shareholder value.” The move comes on the heels of the Geremarie Corporation acquisition last week. 

Meanwhile, spices and condiments company McCormick announced a 10% increase in its quarterly dividend to $0.68 per share, payable January 11, 2021 to shareholders of record December 31, 2020. This is the 35th consecutive year it bumped up its dividend. McCormick noted that on a split-adjusted basis, the new quarterly dividend will be $0.34 per share. The company announced a 2-for-1 stock split, effective December 1, in September, citing “sustained positive performance and outlook for continued growth.” 

On the deal front, CoStar Group announced that it’s set to acquire Homesnap for $250 million in cash, with the deal expected to close in 2020, pending customary closing conditions and regulatory approval. As a result of the acquisition, CoStar estimates the number of paying real estate brokers and active agent users on its U.S. platforms will quadruple from about 100,000 today to over 400,000. In addition, the number of U.S. property listings available across CoStar’s brands is expected to double from about 1.35 million today to over 2.6 million. “The acquisition of Homesnap will enable us to enter a new space and expand the total addressable markets in which we can compete,” CoStar CEO, Andy Florance, noted.