The downward momentum that marked the end of last week continued on Monday, with the major averages finishing lower for the fourth consecutive session. The Nasdaq led the decline, falling by 1%.
Rivian (NASDAQ:RIVN) represented a notable decliner on the session, falling in the wake of a recall. Five9 (FIVN) also saw significant weakness, losing more than a quarter of its value after its CEO revealed that he was leaving the company.
Looking at some of the day’s best performers, HCI Group (HCI) jumped after providing more information about its reinsurance arrangements surrounding Hurricane Ian. At the same time, Denbury (DEN) advanced amid reports that it is in talks for a potential takeover deal.
HCI Group (HCI) rallied after providing further details about the impact of Hurricane Ian. The insurance provider, which has seen its stock suffer lately amid worries about the storm’s impact on its Q3 results, jumped about 11%.
The company reassured investors that it entered into a “robust reinsurance program” earlier this year, giving it “significant protection” in Florida.
“Additionally, HCI maintains significant reinsurance protection for the remainder of the contract year,” company CEO Paresh Patel added.
HCI soared $3.66 on the day to close at $36.91. Last week, the stock reached a 52-week low of $32.28. As recently as Aug. 8, the stock closed at $71.85. Shares have fallen about 49% since that time.
Rivian (RIVN) dropped after announcing a wide-scale recall late last week. The stock dropped 7% on the day.
The EV maker announced that it will recall about 13K vehicles due to an issue related to the steering system. The move impacts nearly every vehicle produced this year and more than half of its total production guidance for 2022, which currently calls for 25K.
RIVN declined $2.47 to close at $31.48. Shares have seen choppy trading lately after coming off their 52-week low of $19.25 during the summer.
With Monday’s drop, RIVN reached its lowest level since July. Shares experienced a massive selloff early in the year. Even with a moderation during the summer, the stock remains about 69% lower for 2022 as a whole.
Notable New High
Reports pointing to a potential sale triggered buying interest in Denbury (DEN). With Exxon (XOM) identified as a potential buyer, DEN rallied almost 7% to reach a new 52-week high.
Street Insider reported that DEN is in talks to be acquired by a strategic buyer. Meanwhile, Bloomberg said XOM was considering a takeover as well.
DEN showed losses early in the day, but the takeover reports sparked a wave of buying in the middle of the session. The stock eventually ended at $99.02, an advance of $6.32 on the session.
During the session, shares reached an intraday 52-week high of $104.05.
Notable New Low
A major leadership change prompted a wave of selling in Five9 (FIVN). Shares plunged almost 26% to reach a new 52-week low.
The developer of cloud-based contact center software announced that Rowan Trollope has resigned as the firm’s CEO to take a similar job at a privately held company. The company said its former CEO will take over the role, effective Nov. 28.
On the news, FIVN plunged to an intraday 52-week low of $57. Shares trimmed their losses slightly by the close but still ended at $57.30, a decline of $19.67 on the day.
Monday’s slide accelerated a downtrend that began in August. With losses posted earlier in the year, FIVN has now fallen nearly 59% for 2022.
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