Match Group (NASDAQ:MTCH) soared on activist interest, Schwab (NYSE:SCHW) stumbled over interest revenue woes, and Bank of America (NYSE:BAC) impressed with robust earnings.
In a busy day for financial markets, three stocks are grabbing headlines due to significant corporate developments and earnings reports.
Match Group saw its shares surge following news of an activist investor stake, while Charles Schwab faced pressure after reporting a decline in interest revenue. Meanwhile, Bank of America posted strong quarterly results, beating analyst expectations.
Match Group (MTCH) Stock Gains After Activist Hedge Fund Reveals 6.6% Stake
Shares of Match Group soared more than 9% in premarket trading, reaching $35.00, after activist hedge fund Starboard Value revealed a 6.6% stake in the company.
This makes Starboard the third-largest shareholder in the online dating giant. In a letter to Match’s leadership, Starboard outlined suggestions for improvement, including boosting adjusted operating margins above 40% and implementing more aggressive stock buyback plans.
The activist investor also indicated support for a potential sale of Match to take the company private if improvements aren’t made. Match Group, which operates popular platforms like Tinder, Hinge, and OkCupid, has seen its stock struggle with a year-to-date return of -4.97% and a one-year return of -27.84%.
Charles Schwab (SCHW) Stock Tumbles After Bank Reports Decline in Net Interest Revenue
Charles Schwab’s stock tumbled 6.95% to $69.86 following the release of its second-quarter earnings report. While the company slightly beat analyst expectations with earnings per share of 73 cents and revenue of $6.69 billion, investors were disappointed by a 6% year-over-year decline in net interest revenue, which totaled $2.16 billion.
This figure fell short of analysts’ expectations of $2.17 billion. Despite the challenges, Schwab reported that total client assets hit a record $9.4 trillion, and bank accounts grew by 2% at the end of the quarter. The company’s year-to-date return stands at 2.34%, with a one-year return of 21.34%.
Bank of America (BAC) Stock Gains on Strong Q2 Earnings
Bank of America’s shares rose 5.01% to $43.99 after the banking giant reported strong second-quarter results. The company posted a net income of $6.9 billion and earnings per share of $0.83, surpassing analysts’ expectations of $0.79.
Total revenue increased 1% year-over-year to $25.4 billion, also beating forecasts. Despite a 3% decline in net interest income to $13.7 billion, Bank of America saw growth in other areas, with average deposit balances increasing 2% to $1.91 trillion.
The bank also announced plans to increase its quarterly dividend by 8% to $0.26 per share. Bank of America’s stock has performed well this year, with a year-to-date return of 32.37% and a one-year return of 55.61%.
***
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.