Category: Investment News

Stock buybacks have been prolific in the past 15 months. This aggressive repurchase strategy might not be as beneficial as the market wants us to believe. Analysts at Ned Davis Research estimates that the S&P 500 would be 19% lower than it currently is today if companies hadn’t repurchased any stocks. In my previous Stock Buyback Frenzy article, I discussed all the advantages and positives implications that stock buybacks could have on you and the stocks you are investing in. In this article I will look at the other side of the stock buybacks, including execs looking for short-term stock[…]

Corporate cash reserves have been swelling, as firms repatriated $665 billion back into the US in 2018 and corporate cash flows are hitting all-time highs, partly due to the reduced corporate tax rate. Businesses have reviewed their possible cash allocation options and many are deciding that stock buybacks are the best choice for their investors. So far in Q1, over 80% of S&P 500 companies had reported stock repurchases this past quarter, with an overall repurchase of $180 billion worth of equity. The question that we, as investors may have is, what implications does a stock buyback have on me[…]

Equity Market The S&P 500 just bounced off another all-time high today as stronger than expected earnings continue to boost the market. The S&P 500 has grown 17.5% since the beginning of the year, continuing its momentum from Q1 which was the biggest market rally in almost a decade and has officially gained back everything it lost in the Q4 correction and more. Below you can see the 52-week performance chart for the S&P 500. If this rally is going to continue it wouldn’t be a bad idea to take a look at S&P tracking ETFs like VOO or IVV.[…]

In a report released today, Brian Nagel from Oppenheimer maintained a Hold rating on RH (RH). The company’s shares opened today at $112.77. Nagel wrote: “Yesterday (Mar. 28th) after the market close, Perform-rated RH (RH) reported fiscal Q4:18 (Jan. 2019) results and updated guidance for FY19 (Jan. 2020). Shares are trading down markedly, upon indications of a weaker than expected end to last year and beginning of 2019. Management outlined clearly that the combination of macro challenges and some internal issues has weighed upon sales trends at the chain over the past several weeks. As we have indicated, we admire[…]

Maxim Group analyst Jason McCarthy maintained a Hold rating on Bluebird Bio (BLUE) today. The company’s shares opened today at $155.27. McCarthy wrote: “Bluebird announced a positive opinion from CHMP recommending conditional marketing authorization for Zytenglo gene therapy for non-β 0 /β 0 transfusion- dependent β-thalassemia (TDT) in the EU. Zytenglo approval would usher in the first gene therapy for TDT and the first approved therapy for bluebird. Following the CHMP opinion, an EU marketing decision is expected in 2Q19. NDA filing in the U.S. is expected later this year.” According to TipRanks.com, McCarthy is ranked 0 out of 5[…]