Robinhood, Chewy, RH, Lululemon and more

Check out the companies making headlines in midday trading.

Robinhood — Shares of the stock-trading app fell 5.8% in midday trading after Morgan Stanley initiated coverage of the company with an equal-weight rating. The Wall Street firm said Robinhood could be the younger population’s Charles Schwab as it has a firm grip over millennials and Generation Z. However, Robinhood will need to expand its product offerings if it wants to retain its appeal, the analyst said.

Lululemon – Shares rose more than 11% after the company announced a $1 billion stock buyback program. The athletic apparel company posted per-share earnings that were better than expected, but the company fell short of Wall Street’s revenue estimates. Lululemon also issued first-quarter and full-year guidance higher than the Refinitiv consensus expectations.

BioNTech — BioNTech’s stock rose 5.5% after the drug maker reported better-than-expected revenue and earnings for the quarter and reiterated previous vaccine revenue guidance for the year.

Five Below — Shares of the discount retailer fell 4.7% in midday trading following its lackluster earnings report. Five Below reported same-store sales of 3.4%, below estimates of 3.6%. Earnings came in one cent higher than forecasts but revenue missed estimates, according to Refinitiv.

RH — The home-furnishings retailer’s shares declined by more than 12% after the company reported a revenue miss for its most recent quarter. RH brought in $902.7 million, compared to estimates of $931.8 million. It also announced a three-for-one stock split that will take place in the spring.

Chewy — Shares of Chewy dropped more than 14% on Wednesday after a fourth-quarter report that missed expectations. The pet-focused e-commerce company reported a loss of 15 cents per share on $2.39 billion in revenue. Analysts surveyed by Refinitiv were expecting a loss of 8 cents per share on $2.42 billion in revenue. Chewy’s forward revenue guidance also came in below estimates.

Wayfair — Shares of the home decor and furniture company dipped more than 5% as Loop Capital downgraded the stock from “hold” to “sell.” Loop also indicated it expects a negative impact amid Fed tightening and the end of stimulus from the pandemic.

Pearson — Pearson’s stock dipped6% following news that private equity firm Apollo could not reach an agreement with the educational publisher about a possible takeover bid. Apollo also indicated it does not plan to make an offer on the company.

Oil stocks — Oil stocks rose on Wednesday as crude prices, which have seesawed in recent weeks, edged higher. ConocoPhillips, Occidental Petroleum and Phillips 66 gained 0.5%, nearly 1% and 3.2%, respectively

Freshpet — Freshpet’s stock gained 5.4% after Goldman Sachs upgraded the stock to buy from neutral as demand for fresh pet food continues to grow. The bank upped its price target on the company to $136 per share from $111.

Rivian — Shares of the automaker popped 2% in midday trading. On Wednesday, RBC analysts reiterated its outperform rating after expressing confidence that Rivian’s production ramp is improving. The company’s stock price cratered nearly 47% year to date.

Procter & Gamble — Shares of Procter & Gamble inched more than 1% lower after JPMorgan downgraded the company to neutral from overweight amid inflationary pressures. The bank attributed rising costs and FX headwinds as the reason for the downgrade.

— CNBC’s Maggie Fitzgerald, Jesse Pound, Hannah Miao, Tanaya Macheel and Sarah Min contributed reporting