Stock Markets
US Supreme Court to hear challenge to Biden’s ‘ghost guns’ curbs
By Andrew Chung
WASHINGTON (Reuters) -The U.S. Supreme Court on Monday agreed to decide the legality of a federal regulation aimed at reining in homemade “ghost guns” as President Joe Biden’s administration combats the increasing use of these largely untraceable weapons in crimes nationwide.
The justices took up the administration’s appeal of a lower court’s decision finding that the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) exceeded its authority in issuing the 2022 rule targeting parts and kits for ghost guns, which can be assembled at home in minutes.
The case will be heard during the Supreme Court’s next term, which begins in October.
The ATF rule targeted the rapid proliferation of privately made ghost guns bought online without federal requirements such as serial numbers or a background check for buyers – features that make them especially attractive to criminals and others barred from lawfully purchasing firearms, including minors.
The regulation expanded the definition of a firearm under a 1968 federal law called Gun Control Act to include parts and kits that may be readily turned into a gun. It required serial numbers and mandated that manufacturers and sellers be licensed. Sellers under the rule also must run background checks on purchasers prior to a sale.
Plaintiffs including the parts manufacturers, various gun owners and two gun rights groups – the Firearms Policy Coalition and Second Amendment Foundation – sued to block the rule in federal court in Texas.
Brandon Combs, founder of the Firearms Policy Coalition, praised the court’s decision to hear the case, denouncing the ATF’s “unconstitutional and abusive” rule.
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Eric Tirschwell, executive director of the gun safety legal group Everytown Law, urged the justices to uphold the rule “confirming that ghost guns are to be treated like the deadly firearms they are. These weapons have exacerbated our nation’s gun violence epidemic.”
The Justice Department did not immediately respond to a request for comment.
HARD TO TRACE
According to the administration, police departments nationwide have confronted “an explosion of crimes involving ghost guns,” now recovering tens of thousands of the weapons every year.
Yet ghost guns are almost impossible to trace. The ATF successfully traced to unlicensed purchasers less than 1% of unserialized firearms recovered from crime scenes between 2016 and 2021, court papers showed.
The rule imposes on the sale of parts and kits the same conditions that already govern firearms manufacturers and dealers in millions of other transactions every year, according to the administration.
Even though the New Orleans-based 5th U.S. Circuit Court of Appeals in November sided with the plaintiffs, it remains in effect due to actions taken by the Supreme Court.
The justices twice last year acted against orders issued by Fort Worth, Texas-based U.S. District Judge Reed O’Connor in favor of the plaintiffs. In August, they halted his ruling to block the regulation pending further litigation. In October, they set aside his injunction that would have let two manufacturers continue selling their ghost gun products.
O’Connor issued a 2023 ruling invalidating the rule, finding that the administration exceeded its authority under the Gun Control Act. The congressional definition of a firearm “does not cover weapon parts, or aggregations of weapon parts, regardless of whether the parts may be readily assembled into something that may fire a projectile,” the judge concluded.
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The 5th Circuit upheld O’Connor’s decision faulting the ATF, saying the agency impermissibly rewrote the firearms law while attempting to “take on the mantle of Congress to ‘do something’ with respect to gun control. But it is not the province of an executive agency to write laws for our nation.”
The plaintiffs have portrayed the policy as a threat to the long history of legal private gunsmithing in the United States. Unlike some other gun-related cases, this one goes not center on the U.S. Constitution’s Second Amendment right to “keep and bear arms.”
The United States, with the world’s highest gun ownership rate, remains a nation deeply divided over how to address firearms violence including frequent mass shootings.
In three major rulings since 2008, the Supreme Court has widened gun rights, including a 2022 decision that declared for the first time that the U.S. Constitution protects an individual’s right to carry a handgun in public for self-defense.
In another gun-related case, the court on Feb. 28 heard arguments over the legality of a federal ban on “bump stocks” – devices that enable semiautomatic weapons to fire rapidly like machine guns. A ruling in that case is expected by the end of June.
In a turbulent market environment, Five9 (NASDAQ:) Inc’s stock has touched a 52-week low, reaching a price level of $28.74. This significant downturn reflects a broader trend for the cloud software company, which has seen its shares plummet by -58.79% over the past year. Investors are closely monitoring Five9’s performance as it navigates through a period of heightened volatility and shifting industry dynamics, which have contributed to the stock’s current valuation at this low point. The company’s efforts to rebound from this position will be under scrutiny in the coming quarters as market participants look for signs of a strategic turnaround or further indications of market pressures.
In other recent news, Five9 Inc . has achieved an annual revenue run rate exceeding $1 billion in Q2, a significant milestone despite lowering its annual revenue guidance by 3.8% due to customer budget constraints. The company’s adjusted EBITDA margin rose to 17% of revenue, contributing to a strong operating cash flow of $126 million. The company also confirmed plans to reduce its global workforce by approximately 7% by the end of 2024, a strategic move projected to cost between $12 million and $15 million.
Five9’s recent acquisition of Acqueon, a firm specializing in proactive outbound omnichannel customer engagement, aims to expand its AI offerings and bolster its growth. This move is in line with the company’s focus on managing expenses and improving profitability, with initiatives like FedRAMP and expansion into India anticipated to improve gross margins.
In their analysis, Piper Sandler maintained an Overweight rating for Five9, with a steady price target of $47.00, while Needham and BTIG both maintained a Buy rating with price targets of $48.00 and $45.00 respectively. These ratings reflect the firms’ confidence in Five9’s strategic positioning and potential for growth, despite the current challenges and workforce reduction.
InvestingPro Insights
Amid the current market conditions, Five9 Inc’s recent performance can be put into perspective with select data from InvestingPro. The company’s market capitalization stands at roughly $2.15 billion, indicating the size and scale of the business amidst its challenges. Despite the stock’s decline, analysts are showing a hint of optimism, with 20 analysts having revised their earnings estimates upwards for the upcoming period. This could signal a potential turnaround in sentiment or underlying business performance.
Importantly, Five9’s liquid assets are reported to surpass short-term obligations, suggesting that the company maintains a degree of financial flexibility to navigate its current difficulties. Furthermore, while the stock is trading near its 52-week low, it’s worth noting that the relative strength index (RSI) suggests the stock is in oversold territory, which can sometimes precede a rebound in share price. Investors looking for comprehensive analysis and additional InvestingPro Tips on Five9 can find more insights, including 14 other tips, at https://www.investing.com/pro/FIVN.
In terms of financial health, the company operates with a moderate level of debt and is expected to become profitable this year, according to analysts’ predictions. These elements may offer some solace to investors considering the stock’s substantial price fall over the last year. For those seeking a deeper dive into Five9’s valuation and future prospects, the InvestingPro platform provides a fair value estimate of $45.04, which is considerably higher than the current trading price, suggesting potential undervaluation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
TD Cowen reiterated its Buy rating on shares of Terns Pharmaceuticals (NASDAQ:TERN), following the company’s investor call. The call was held to manage expectations for the upcoming Phase 1/2 CARDINAL study data for chronic myeloid leukemia (CML). The firm noted the challenges in measuring the efficacy endpoint (EP) due to disease progression and the absence of treatment switch guidelines, which makes major molecular response (MMR) a challenging efficacy endpoint for Phase 1/2 trials.
The interim Phase 1/2 data aims to evaluate descriptive efficacy signals, considering patients’ baseline BCR-ABL levels and treatment history. The analyst highlighted that the once-daily (QD) dosing and the lack of food effect could potentially enhance the quality of life for patients compared to other allosteric tyrosine kinase inhibitors (TKIs).
Terns Pharmaceuticals has been focusing on the development of improved treatment options for CML. The company’s approach to dosing, which does not require food intake, may offer a more convenient alternative for patients, potentially leading to better adherence and outcomes.
The topline data from the 6-month Phase 1/2 CARDINAL study is anticipated to be available in 2025. This data will provide further insights into the treatment’s efficacy and safety, which are critical factors in the ongoing development and potential approval process.
Investors and stakeholders in Terns Pharmaceuticals are expected to closely monitor the progress of the CARDINAL study, as it could have a significant impact on the company’s future prospects and position in the CML treatment landscape.
In other recent news, Terns Pharmaceuticals has experienced significant developments. The biopharmaceutical company reported robust earnings and revenue results, with Mizuho Securities maintaining an Outperform rating on Terns shares, citing strong enthusiasm for the company’s drug, TERN-701, a potential treatment for chronic myeloid leukemia.
The firm expects the first interim Phase 1 CARDINAL study data for TERN-701 in December.
Terns also announced the appointment of Elona Kogan as its new chief legal officer, a move that underscores the company’s strategic development and pipeline advancement.
The company also secured an extension of its office lease in Foster City, California, through 2027, reflecting Terns Pharmaceuticals’ operational stability and long-term planning.
In terms of clinical trials, Terns has made progress in its ongoing Phase 1 study of TERN-701, with interim findings suggesting the drug can be administered once daily with or without food.
This development, coupled with the forthcoming Phase 1 data for another of Terns’ drugs, TERN-601—an oral GLP-1 receptor agonist for obesity—expected next month, underscores the company’s commitment to innovative therapies.
These recent developments, from financial performance to executive appointments and clinical trials, highlight Terns Pharmaceuticals’ ongoing efforts to advance its strategic objectives and deliver on its mission. The company’s activities are closely watched by investors and industry analysts, including those from Mizuho Securities, who continue to support the company’s potential.
InvestingPro Insights
As Terns Pharmaceuticals (NASDAQ:TERN) navigates the complexities of its Phase 1/2 CARDINAL study, investors are keeping a keen eye on the company’s financial health and stock performance. According to InvestingPro, Terns holds more cash than debt, which is a positive signal for financial stability. Additionally, with five analysts revising their earnings upwards for the upcoming period, there is a sense of optimism about the company’s potential performance.
However, it’s important to note that Terns is not currently profitable and has been quickly burning through cash, which may raise concerns about long-term sustainability. The company’s P/E Ratio stands at -5.71, reflecting these profitability challenges. Despite these hurdles, Terns has managed a 1 Year Price Total Return of 45.42%, indicating some investor confidence in the company’s growth prospects. The anticipated fair value from analysts stands at 15 USD, while the InvestingPro Fair Value is calculated at 5.8 USD, highlighting a divergence in valuation perspectives.
For those looking for more in-depth analysis, additional InvestingPro Tips on Terns Pharmaceuticals can be found at https://www.investing.com/pro/TERN, offering a comprehensive look at the company’s financial details and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
PARIS (Reuters) – French President Emmanuel Macron discussed the importance of maintaining support for Ukraine and the need for a ceasefire in Gaza during talks on Friday with German Chancellor Olaf Scholz, said the French presidency.
Regarding Ukraine, the two leaders expressed their determination to support the country “for as long and as intensively as necessary” in its war against Russia, the Elysee said.
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