Biggest stock movers Wednesday: SAP, SFIX, RITM, and more

Stock futures edged lower Wednesday morning as investors awaited remarks from Federal Reserve Governor Adriana Kugler, scheduled for later in the day. Markets are closely watching to see if Kugler will join other policymakers in commenting on last week’s significant interest rate cut.

Here are some of Wednesday’s biggest stock movers:

Biggest stock gainers

• Progress Software (PRGS) shares surged by as much as 5% after the company raised its FY2024 outlook, following upbeat FQ3 results. The company now anticipates adjusted EPS between $4.75 and $4.85, with a midpoint of $4.80, up from its prior guidance of $4.70 to $4.80 and exceeding the consensus estimate of $4.76. Additionally, Progress Software increased its revenue forecast to a range of $745M to $755M, with a midpoint of $750M, surpassing its earlier guidance of $725M to $735M and the consensus estimate of $732.71M.

Biggest stock losers

• Stitch Fix (SFIX) shares plunged 22% as the company reported a 12.4% decline in FQ4 sales due to fewer active clients, leading to a larger-than-expected loss and weak guidance for both the current quarter and FY25. For FQ1, Stitch Fix expects net revenue to fall 15% to 17%, ranging from $303M to $310M, below the consensus of $331.3M. Adjusted EBITDA is projected between $5M and $9M, compared to $8.6M in the same quarter last year. For FY2025, the company anticipates a revenue decline of 13% to 17% to $1.11B to $1.16B (midpoint $1.135), missing consensus of $1.31B, with adjusted EBITDA forecasted between $14M and $28M, down from $29.3M in FY2024.
• KB Home (KBH) shares fell 6% after the company reported mixed FQ3 results, which fell short on the bottom-line due to flat net orders Y/Y and a slight decline in average home selling price to $480.9K from $483K in the prior quarter. The company revised its 2024 housing revenue forecast to $6.85B-$6.95B, slightly higher than its previous guidance and in line with the Visible Alpha consensus of $6.81B. KB Home also expects the average selling price to rise to $490K, exceeding the consensus of $488K, while narrowing its home building operating income guidance to 11.1%-11.2%, assuming no inventory-related charges.
• Rithm Capital (RITM) shares slipped over 3% after pricing its underwritten public offering of 30M common shares at a gross price of approximately $342.9M. The offering includes an option for the underwriters to purchase up to an additional 4.5M shares within 30 days. The proceeds from the offering will be used for general corporate purposes, and the closing is expected on September 26, 2024.
• Shares of SAP SE (SAP) fell 3.4% following a report that the company, along with product reseller Carahsoft Technology, is under investigation by U.S. officials for allegedly conspiring to overcharge government agencies over the past decade. According to the report, the Justice Department has been examining whether SAP and Carahsoft colluded to fix prices on sales to the U.S. military and other government departments. The probe, which began in 2022, highlights potential legal risks for SAP, a major vendor to the U.S. government, and Carahsoft, whose Virginia offices were reportedly raided by FBI agents. Carahsoft has secured $3.5B in government contracts since fiscal 2020, with SAP technology accounting for a significant portion of that business. The investigation also extends to other software resellers and a unit of Accenture (ACN).