Top Movers | HELE Beat Earnings Estimates; CVNA & LYFT Rose on News/Short Covering?

1. $Novavax(NVAX)$ +29.46% on $350 mln payment news

Novavax, a biotech company based in Maryland, experienced a significant increase in its stock price after announcing that Canada agreed to pay $350 million for forfeited Covid vaccine doses.

The payment is part of an amended purchase agreement between Novavax and the Canadian government, providing hope for investors and boosting confidence in the company's future.

The settlement stems from an agreement established in January 2021 between Novavax and the Canadian government. In a filing with the Securities and Exchange Commission, Novavax stated that Canada will make the payment in two equal installments in 2023.

This settlement and payment from Canada serve as an encouraging development for Novavax and its investors, especially considering the company's previous financial concerns and doubts about its ability to sustain its operations.

2. $Helen Of Troy(HELE)$ +18.49%: better-than-anticipated results

Helen of Troy Limited provides various consumer products in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

Shares popped 18.49% after the company posted better-than-anticipated first-quarter numbers.

While Q1 revenue declined 6.6% year-over-year to $474.67 million, the figure still landed ahead of estimates by $9.3 million. Additionally, EPS at $1.94 too handily outperformed expectations by $0.26.  

• Revenue: $474.67 mln vs. $483.9 mln

• EPS: $1.94 vs. $1.68

During the quarter, HELE witnessed challenges from lower consumer demand and a change in buying patterns. Nonetheless, it managed to expand profit margins and pare down debt during this period.

Helen of Troy also reiterated its fiscal 2024 adjusted EPS of $8.50-$9.00. It predicts net sales of $1.965 billion-$2.015 billion in fiscal 2024.

 Short interest in Helen of Troy Limited stock is around 25%. Shares are up about 25% in a few months, and fiscal Q1 results were strong, adding fuel to the rally.

3. $Carvana Co.(CVNA)$ +16.37%: used car prices dropped while stock being shorted

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States.

In June, the prices of used cars in the United States dropped by 4.2%, marking the largest monthly decline since the early stages of the pandemic.

Used car prices serve as a barometer for inflation in the United States, and they have been consistently declining on a year-on-year basis for 10 consecutive months. This decline in prices reflects positive news in terms of moderate inflation. This is why the stock prices of companies like CVNA and VRM have risen, as lower used car prices make them more appealing to buyers.

At the same time, Carvana stock's rally may be at least partially fueled by a wave of purchases that are only meant to cover existing short positions.

As of mid-June, nearly 45% of outstanding CVNA shares and more than 68% of its public float was sold short, making Carvana one of the market's most heavily shorted stocks. Bearish investors will exit these trades at some point, but short positions can only be ended by repurchasing the stock.

4. $Lyft, Inc.(LYFT)$ +9%: strong bullish options contracts vs. short selling

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada.

Shares of LYFT are up by 18% over the last 30 days and are trading over 10% higher on Monday.  Lyft's ride-sharing competitor, Uber Technologies, Inc.

$Uber(UBER)$ , has risen more than 35% over the past three months.

According to data from Benzinga, LYFT has garnered some attention from short sellers with 13.6% of available shares being sold short.