Market Insider

Stocks making the biggest moves midday: Virgin Galactic, Canopy Growth, Wingstop, Qorvo & more

Sir Richard Branson poses on floor of New York Stock Exchange (NYSE) with Future Virgin Galactic space traveller Jennifer Rallison from Canada as Virgin Galactic (SPCE) began public trading in New York, U.S., October 28, 2019.
Brendan McDermid | Reuters

Check out the companies making headlines midday Monday:

Virgin Galactic — Morgan Stanley initiated coverage of Virgin Galactic with an overweight rating, sending the stock up more than 15%. The analyst also issued a $22 per share price target for Virgin Galactic, a 203% upside from current levels. "A chance to disrupt the multi-trillion-dollar airline [total addressable market] is what is really likely to drive the upside," the analyst said.

Wingstop — An analyst at Goldman Sachs added Wingstop to its conviction buy list as the food chain's same-store sales momentum shows signs of sustainability. Wingstop shares jumped 5%.

Canopy Growth — Shares of the Canadian cannabis company jumped 14.2% on news that Constellation Brands CFO David Klein will be Canopy's new chief executive. Klein's appointment takes effect on Jan. 14, Canopy Growth said in a release.

Synthorx — The California-based biotech company skyrocketed more than 170% on news it will be acquired by Sanofi for $2.5 billion, or $68 per share. That represents a 172% premium to Synthorx's closing price of $25.03 per share on Friday. The deal is expected to close in the first quarter of 2020.

Skyworks Solutions, Qorvo — Both semiconductor stocks were upgraded to buy from underperform by Bank of America, citing a demand jump as 5G technology proliferates. "5G could prove to be one of the more compelling and investable themes in semis," Bank of America said. Skyworks gained 1.8% while Qorvo rose 1.7%.

XBiotech — XBiotech shares rallied more than 75% on news Johnson & Johnson-subsidiary Janssen Pharmaceutica will acquire its colorectal-cancer treatment drug, bermekimab, for $750 million.

3M — Shares of the multinational conglomerate slid 0.9% after a Citi analyst downgraded the stock to neutral from buy. The analyst noted 3M's litigation risks "could be a lingering overhang that prevents a re-rating to its former premium multiple."

ArQule — ArQule, which develops drugs aimed at treating cancer, will be acquired by Merck for about $2.7 billion, or $20 per share. That represents a 107% premium from Friday's close of $9.66. The stock more than doubled on Monday, trading around $19.68.

—CNBC's Michael Bloom contributed to this report.