Big 5 Sporting Goods Reported Positive Earnings and ChemoCentryx Faced Heavy Criticism from the FDA
Big 5 Sporting Goods
Big 5 Sporting Goods is a sporting retailer that is based in California. Most of their stores are in the western part of the United States, and they also hold an ecommerce platform to sell goods. Big 5 fell massively during the COVID-19 market crash, but has recovered very nicely, up almost 1600% from its lows.
Big 5 reported earnings on Tuesday after hours, and the results were spectacular. They reported 96 cents per share, absolutely crushing estimates, and same store sales beat the guidance that they placed in the previous quarter. Along with that, Big 5 increased their quarterly dividend by 20 percent to 18 cents per share and offered a special $1 cash dividend for the quarter.
Big 5 closed at $19.07, but jumped to $23.10 after hours in reaction.
ChemoCentryx is a mid-cap biotechnology company that specializes in developing treatments and drugs for autoimmune diseases. As a biotech, they rely heavily on news, and the stock is often very volatile with rapid price movements.
Unfortunately, we saw a movement down today. The FDA, a government organization that approves drugs, questioned the clinical data behind their drug, avacopan, which is a treatment for a rare autoimmune disease. This has left investors believing that the drug would have an uphill battle to get approval, as the FDA was especially critical about this one. However, there are still some positive hopes that the drug can go through.
ChemoCentryx had a rough Tuesday, closing at $26.63, which was 45.45% lower than the previous close.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.