Category: Stock Market

The New York Stock Exchange initiated proceedings to delist Hertz Global Holdings Inc (NYSE: HTZ) on Tuesday following the car rental chain's bankruptcy filing, according to Reuters. Coronavirus Fuels Hertz Bankruptcy Filing Economic damage from the coronavirus forced Hertz to file for Chapter 11 bankruptcy Friday after nearly a month of speculation. Between Feb. 20 and May 26, as the pandemic stalled airport business, Hertz's stock fell from $20.29 to $2.84."The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company's revenue and future bookings," the company said in a Friday press release."Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending and preserve liquidity. However, uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today's action."Hertz had already furloughed or laid off around 20,000 employees, replaced its CEO and, according to Reuters, discussed selling more than 30,000 of its 500,000 vehicles per month through the end of 2020 to try to raise about $5 billion. The team failed to find financial relief from creditors and the U.S. government.Hertz Grabs Carl Icahn's Attention This isn't the first time the NYSE has threatened to remove Hertz from the public market. The company received a delisting notice in 2015 for failing to file its 2014 10-K form on time.Even before the pandemic hit, Hertz had ceded enough market share to ride-sharing services to capture the attention of activist investor Carl Icahn, who claimed nearly 39% ownership when the pandemic started.The company adopted a turnaround plan. Its efforts accrued about $19 billion in debt, but helped sustain 10 consecutive quarters of year-over-year revenue growth.What's Next For Hertz A bankruptcy filing isn't necessarily the end of Hertz's efforts to stay afloat."Depending upon the length of the COVID-19 induced crisis and its impact on revenue, the company may seek access to additional cash, including through new borrowings, as the reorganization progresses," the company's press release said. The stock, which has been halted since early Tuesday morning, ended Friday's session down 7.49% at $2.84. Related Links:Avis Budget Group Reports Mixed Q1 Earnings As Pandemic Hits Car Rental BusinessActivist Investors Go Dormant As COVID-19 Depresses EconomySee more from Benzinga * Activist Investors Go Dormant As COVID-19 Depresses Economy(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Anjalee Khemlani speak with Novavax R&D President Dr. Gregory Glenn about the company’s coronavirus vaccine candidate.

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Nela Richardson, Edward Jones Investment Strategist, joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi to discuss overall markets and what she is keeping a close watch on.

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Chile’s LATAM Airlines Group SA on May 26 became the largest carrier so far to seek an emergency reorganisation during the pandemic. British regional airline said on March 5 it had entered into administration as the already struggling carrier failed to withstand the plunge in travel demand caused by the coronavirus outbreak. The Swedish airline applied for a court-administered reorganisation after demand plunged due to the spread of the novel coronavirus, it said on its website on April 6.

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Novavax has begun phase one of its clinical trail for a coronavirus vaccine candidate. Yahoo Finance’s Anjalee Khemlani breaks down the latest developments.

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Merck & Co Inc, which has largely kept to the sidelines of the race for COVID-19 treatments, said it was buying Austrian vaccine maker Themis Bioscience and would collaborate with research nonprofit IAVI to develop two separate vaccines. It also announced a partnership with privately held Ridgeback Biotherapeutics to develop an experimental oral antiviral drug against COVID-19, the respiratory disease caused by the novel coronavirus. It did not disclose the terms of the acquisition of Themis, a privately held company.

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Merck & Co. (MRK) on Tuesday became the latest drugmaker to join the race for the development of a COVID-19 treatment by announcing the purchase of Austrian vaccine maker Themis Bioscience and the collaboration with non-profit research group IAVI.Shares in Merck rose 4% to $79.40 in U.S. pre-market trading. The drugmaker said that the Themis acquisition builds upon an ongoing collaboration between the two companies to develop vaccine candidates using the measles virus vector platform, and is expected to accelerate the development of Themis’ COVID-19 vaccine candidate. The vaccine candidate is in pre-clinical development, and clinical studies are planned to start later in 2020.In addition, Merck announced a new collaboration with IAVI, a non-profit scientific research organization, to advance the development and global clinical evaluation of another vaccine candidate for the prevention of COVID-19.This vaccine candidate will use the recombinant vesicular stomatitis virus (rVSV) technology that is the basis for Merck’s Ebola Zaire virus vaccine, ERVEBO (Ebola Zaire Vaccine, Live), which was the first rVSV vaccine approved for use in humans. The vaccine candidate is in preclinical development, and clinical studies are planned to start later this year. Merck will manage the regulatory filings globally.Furthermore, Merck has also signed an agreement with the U.S. Biomedical Advanced Research and Development Authority (BARDA), to provide initial funding support for this effort.“Merck is collaborating with organizations around the globe to develop anti-infectives and vaccines that aim to alleviate suffering caused by SARS-CoV-2 infection,” said Roger M. Perlmutter, President of Merck Research Laboratories. “Merck and IAVI are eager to combine our respective strengths to accelerate development of an rVSV vaccine candidate, with the goal of blunting the trajectory of the COVID-19 pandemic.”Lastly, Merck and biotech company Ridgeback Bio announced a collaboration to advance the development of EIDD-2801, an oral antiviral candidate for COVID-19. Under terms of the agreement, Merck will get exclusive worldwide rights to develop and commercialize EIDD-2801. Ridgeback Bio will receive an undisclosed upfront payment, specified milestones and a share of EIDD-2801 net proceeds, if approved. Meanwhile, Merck will be in charge of clinical development, regulatory filings and manufacturing.Shares in Merck appreciated some 15% in the past two months after losing about a third of their value this year.Following Merck’s announcements, Mizuho Securities analyst Mara Goldstein reiterated a Buy rating on the stock with a $100 price target.“As a major player in vaccine development (also the first licensed Ebola vaccine), this move makes sense,” Goldstein wrote in a note to investors. “Given the scope of the global viral outbreak, we see room for multiple vaccine and therapeutic options.”Overall, the stock has bullish support from the Street scoring 8 Buy ratings and 2 Hold ratings from analysts which makes the consensus a Strong Buy. The $92.10 average price target suggests 19% upside potential in the shares in the coming 12 months. (See Merck stock analysis on TipRanks).Related News: Novavax Begins Human Testing For Covid-19 Vaccine, Expects Results In July Regeneron and Sanofi’s Dupixent Shows ‘Positive’ Trial Data, Meets Co-Primary Endpoints Regeneron To Repurchase $5 Billion Stake From Sanofi   More recent articles from Smarter Analyst: * Texas Capital CEO Resigns As Independent Bank Merger Terminated; Analyst Downgrades Stock * Aurinia Submits FDA New Drug Admission For Novel Voclosporin Kidney Treatment * China’s Tencent To Pour $70B Into ‘New Infrastructure’ Including AI * Australia’s New Century In Talks To Buy Vale’s Nickel, Cobalt Mine

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Yahoo Finance’s Brian Sozzi and Alexis Christoforous break down the market action with Invesco Chief Global Market Strategist Kristina Hooper.

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Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Andy Serwer discuss states slowly reopening their economies, and what we can learn from how Maine is handling reopening.

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Texas Capital Bancshares (TCBI) and Independent Bank (IBCP) have mutually agreed to terminate their merger agreement, previously announced on December 9, under which the parties had agreed to combine in an all-stock merger of equals.The companies have now entered into a Mutual Termination Agreement which was approved by the board of directors of both companies. Neither party will pay any termination fee. On the news Piper Sandler analyst Brad Milsaps downgraded TCBI from buy to hold, while slashing his price target from $41 to $26 (9% downside potential).David Brooks, CEO of Independent Bank Group (IBTX), said, “While both companies believed in the benefits of the proposed transaction when it was announced, we mutually concluded after careful consideration that, given the significant uncertainty caused by the COVID-19 pandemic and the resulting economic and market environment, it would not be prudent to continue to pursue the combination and integration of our companies at this time.”He added that the decision will allow each company to dedicate its focus and resources toward ensuring the strength of its business during these unprecedented times.Following the termination of the merger, Texas Capital also announced that C. Keith Cargill has stepped down as President and CEO and a member of the Board of Directors, effective immediately. However Cargill, who became CEO in 2014, will remain as Vice Chairman until the end of 2020.Larry L. Helm, who has served as Chairman of the Texas Capital Bancshares Board since 2012, will serve as Executive Chair, CEO and President until a permanent successor has been named, the company said.In addition, James H. Browning, an independent director and member of the Texas Capital Bancshares Board since 2009, has been appointed Lead Director.Elysia Ragusa, of Texas Capital, commented, “As part of our focus on succession planning, the Board believes that it is the right time for a transition in leadership as the Company executes a strategy to achieve enhanced operational focus and profitable, long-term value creation.”Shares in TCBI have plunged 50% year-to-date. Notably all seven analysts covering the stock rate it Hold, while the average analyst price target of $27 indicates a further 7% downside potential lies ahead. (See TCBI stock analysis on TipRanks).Related News: New HBO Max Streaming Service Will Go Live on Wednesday Alibaba Scores Earnings Beat With Revenue Surging 22% Y/Y Facebook Workplace Hits 5 Million Paid Users As Remote Work Demand Rises More recent articles from Smarter Analyst: * Aurinia Submits FDA New Drug Admission For Novel Voclosporin Kidney Treatment * China’s Tencent To Pour $70B Into ‘New Infrastructure’ Including AI * Australia’s New Century In Talks To Buy Vale’s Nickel, Cobalt Mine * New HBO Max Streaming Service Will Go Live on Wednesday

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