UniFirst stock drops over 10% after acquisition talks end

Several stocks are making significant movements in premarket trading. UniFirst saw its stock drop over 10%. This happened after Cintas ended talks to acquire the workwear company for $275 per share. Cintas CEO Todd Schneider explained that they could not reach an agreement on important transaction terms. KB Home shares fell 8% after the company reported first-quarter earnings that did not meet Wall Street expectations. KB Home earned $1.49 per share on $1.39 billion in revenue, while analysts had expected $1.58 per share and $1.5 billion in revenue. The company also lowered its revenue outlook for fiscal year 2025. In contrast, Trump Media's shares rose 9%. The parent company of Truth Social announced a partnership with Crypto.com to create exchange-traded funds and other financial products. Cloudflare's stock went up 5.7%. This increase followed a double upgrade from Bank of America, which cited improving fundamentals for the network security firm. Pentair's shares increased by more than 1% after receiving an upgrade to outperform. Analysts noted that the recent drop in shares could represent a buying opportunity due to long-term growth potential. Oklo experienced a nearly 7% drop after reporting a larger annual loss than the previous year. The company acknowledged in an SEC filing its history of financial losses and expected ongoing expenses. Carvana's shares rose about 6% after Morgan Stanley upgraded the stock, stating that the recent pullback presents a unique chance for investors interested in auto retail. American Electric Power’s stock declined nearly 2% after announcing a $2 billion secondary sale of common stock through Citigroup and Barclays.