Stock Markets
Chewy share maintains at Hold on SEC filing disclosed
On Monday, CFRA reaffirmed their Hold rating on Chewy Inc . (NYSE:) with a steady stock price target of $23.00. The reiteration comes amidst a notable increase in the stock’s volatility after an SEC filing disclosed that Keith Gill, known for his role in the GameStop (NYSE:) trading frenzy, has taken a 6.6% ownership in Chewy through the acquisition of 9 million Class A common shares.
The analyst from CFRA highlighted that while the trading patterns reminiscent of the GameStop episode might reoccur, investors should anticipate continued volatility in Chewy’s stock.
The company, which shares a connection with Ryan Cohen and has a significant short interest, presents a contrast to GameStop in terms of its underlying business dynamics. Chewy has recently achieved a crucial milestone by reaching profitability and generating free cash flow.
Chewy’s short interest stands at approximately 15% of its float, translating to around 5% of the total shares outstanding. This is due to the fact that only about a third of Chewy’s 436 million outstanding shares are freely traded on the market. BC Partners, the largest shareholder of Chewy, holds a majority stake exceeding 50% of the common shares.
In recent developments, Chewy entered into an agreement last week to repurchase 17.6 million shares from BC Partners at a cost of $500 million. The CFRA analyst’s position remains unchanged, advising investors to maintain their Hold status on Chewy’s shares.
In other recent news, Chewy has been the center of significant developments. Keith Gill, also known as “Roaring Kitty,” has disclosed a 6.6% stake in the online pet products retailer, sparking interest in the financial community.
In a strategic move towards capital efficiency, Chewy has also entered into an agreement to repurchase 17,550,000 shares of its Class A common stock at a 5% discount, with the transaction expected to be completed by June 2024. This decision reflects the company’s confidence in its growth strategy and margin expansion.
Several investment banking firms have adjusted their outlooks on Chewy. Jefferies raised its price target citing the company’s ability to scale up and achieve greater profitability, while Barclays maintained its Overweight rating with a steady price target, despite a trend of pet surrenders outpacing adoptions.
Similarly, Mizuho Securities, Evercore ISI, and Piper Sandler have all increased their price targets for Chewy, following the company’s strong first-quarter results and revised EBITDA forecast for the year.
These developments follow Chewy’s first-quarter performance marked by strong Autoship sales, record-high Gross Margin, and a record-high EBITDA Margin. Despite a slight decline in active customers, Chewy’s revenue for the second quarter is expected to align with Wall Street forecasts.
The company has also reiterated its revenue guidance for the full fiscal year 2024 and improved its FY24 EBITDA margin guidance, raising the midpoint from 3.8% to 4.2%. This series of recent developments underscores the dynamic nature of Chewy’s operations and market position.
InvestingPro Insights
As Chewy Inc. navigates through market fluctuations and investor scrutiny, real-time data and analysis from InvestingPro provide a deeper perspective on the company’s financial health and stock performance.
With a market capitalization of $11.29 billion, Chewy’s valuation reflects a high P/E ratio of 134.07, indicating that investors are paying a significant premium for the company’s earnings. Despite this, the company’s balance sheet holds more cash than debt, and net income is expected to grow this year, offering a positive outlook for future profitability.
InvestingPro Tips suggest that Chewy’s stock has seen a strong return over the last month and three months, with an impressive 28.43% and 69.3% price total return, respectively. These metrics underscore the stock’s recent momentum, aligning with the CFRA analyst’s observation of increased volatility.
Moreover, six analysts have revised their earnings estimates upwards for the upcoming period, signaling confidence in Chewy’s earning potential. For investors looking to delve further into Chewy’s financials and stock analysis, InvestingPro offers additional insights and tips, which can be accessed with a special offer using the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
While Chewy’s high valuation multiples, such as the P/E and Price / Book ratios, may raise concerns about its current stock price relative to near-term earnings growth, the company’s profitability over the last twelve months and the lack of dividend payments suggest a reinvestment strategy aimed at fostering growth. With 12 more InvestingPro Tips available, investors have ample resources to make informed decisions on their holdings in Chewy Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
By Maggie Fick and Ahmed Aboulenein
WASHINGTON (Reuters) – Members of Donald Trump’s presidential transition team are laying the groundwork for the United States to withdraw from the World Health Organization on the first day of his second term, according to a health law expert familiar with the discussions.
“I have it on good authority that he plans to withdraw, probably on Day One or very early in his administration,” said Lawrence Gostin, professor of global health at Georgetown University in Washington and director of the WHO Collaborating Center on National and Global Health (NS:) Law.
The Financial Times was first to report on the plans, citing two experts. The second expert, former White House COVID-19 response coordinator Ashish Jha, was not immediately available for comment.
The Trump transition team did not immediately respond to a Reuters request for comment.
The plan, which aligns with Trump’s longstanding criticism of the U.N. health agency, would mark a dramatic shift in U.S. global health policy and further isolate Washington from international efforts to battle pandemics.
Trump has nominated several critics of the organization to top public health positions, including Robert F. Kennedy Jr., a vaccine skeptic who is up for the post of secretary of Health and Human Services, which oversees all major U.S. health agencies including the CDC and FDA.
Trump initiated the year-long withdrawal process from the WHO in 2020 but six months later his successor, President Joe Biden, reversed the decision.
Trump has argued that the agency failed to hold China accountable for the early spread of COVID-19. He has repeatedly called the WHO a puppet of Beijing and vowed to redirect U.S. contributions to domestic health initiatives.
A WHO spokesperson declined to directly comment but referred Reuters to comments by WHO Director-General Tedros Adhanom Ghebreyesus at a press briefing on Dec. 10 in which he was asked whether he was concerned that the Trump administration would withdraw from the organization.
Tedros said at the time that the WHO needed to give the U.S. time and space for the transition. He also voiced confidence that states could finalize a pandemic agreement by May 2025.
Critics warn that a U.S. withdrawal could undermine global disease surveillance and emergency response systems.
“The U.S. would lose influence and clout in global health and China would fill the vacuum. I can’t imagine a world without a robust WHO. But U.S. withdrawal would severely weaken the agency,” Gostin said.
U.Today – MicroStrategy has made headlines again by purchasing 5,262 BTC for approximately $561 million at an average price of $106,662 per BTC. The company now holds a staggering 444,262 BTC, accumulated at a total cost of approximately $27.7 billion, with an average purchase price of $62,257 per BTC.
Despite impressive returns of 47.4% since the beginning of the quarter and 73.7% since the beginning of the year, skepticism about the company’s strategy is growing.
It is believed that to sustain its purchases, MicroStrategy raises capital through methods such as issuing convertible and corporate bonds, securing credit lines and selling shares.
This cycle appears to operate as follows: shares are sold to acquire the cryptocurrency, and the rising price per BTC increases asset value, enabling further loans, which are then reinvested in more purchases.
Some observers warn that a significant decline in Bitcoin’s price or MicroStrategy’s stock could trigger a cascade effect. A sharp fall in MSTR shares would weaken the collateral backing its loans, potentially leading to forced asset sales, including BTC.
This scenario could exert downward pressure on the broader cryptocurrency market, as the company holds 2.2% of the global Bitcoin supply now.
Thus, while some view Michael Saylor’s approach as a bold bid to cement the cryptocurrency’s role in the financial system, others see it as unsustainable. History offers a cautionary note: in 2000, MSTR shares surged to $333 before plummeting 99%, a collapse that took 24 years to recover from.
National homebuilder ranked No. 12 on inaugural list ranking companies based on trust
SCOTTSDALE, Ariz., Dec. 23, 2024 /PRNewswire/ — With a longstanding reputation for trust, national homebuilder and land developer Taylor Morrison (NYSE:) (NYSE: ™HC) has been recognized by Forbes on their inaugural list of the Most Trusted Companies in America. The homebuilder ranked No. 12 out of 300 companies across all industries.
“There are few things more powerful than trust and it’s something we strive to earn amongst all company stakeholders, from our customers to our team members, our shareholders, and our local communities,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “To be included on this esteemed list in its inaugural year is especially meaningful and these awards are important reminders of the relationships we’re building across all aspects of our business.”
Fueled by hundreds of millions of data points, the Most Trusted Companies in America list combines data on a wide range of factors across four categories: employee trust, customer trust, investor trust and media sentiment. The ranking was created in partnership with research companies HundredX, Signal AI and Glassdoor.
Taylor Morrison also earned the No. 67 spot on Forbes’ inaugural America’s Best Companies list. The ranking is Forbes’ most comprehensive company ranking to date and factored in ratings for financial performance, customer and employee satisfaction, cybersecurity, sustainability, companies’ remote work policies, media coverage and more. Forbes’ America’s Best Companies list assessed more than 60 metrics across 11 primary categories to identify which organizations excel across the board. Of the more than 2,000 U.S.-based publicly traded companies that were eligible, only 300 qualified for each list.
In addition to being named among the Most Trusted and Best Companies in America by Forbes, Taylor Morrison holds several additional accolades including being named on Newsweek’s America’s Most Responsible Companies and America’s Greenest Companies lists, U.S. News & World Report’s Best Companies to Work For list, the American Opportunity (SO:) Index, America’s Most Trusted ® Home Builder for nine years, Hearthstone’s 2021 BUILDER Humanitarian Award, and inclusion on the Fortune 500 list since 2021.
About Taylor Morrison
Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands”including Taylor Morrison, Esplanade and Yardly. From 2016-2024, Taylor Morrison has been recognized as America’s Most Trusted ® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.
For more information about Taylor Morrison, please visit www.taylormorrison.com.
CONTACT:
media@taylormorrison.com
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