High Profit-Margin Lines of Business Can Lead to Big Profits
One metric that investors often overlook is a profit margin. For a company in the manufacturing business, a single-dollar invested may only earn a total profit of a dime after all the costs involved. For a software company, a dollar invested may yield fifty cents. Over time, it’s clear that the higher-margin business ends up with more capital to expand, pay a dividend, buy back shares, or otherwise reward investors. Any of those activities tend to translate to a higher share ...
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Insider Activity Report: International Business Machines (IBM)
Alfred Zollar, a director at International Business Machines (IBM), recently bought 936 shares. The buy is an initial stake for the director, and came to a total cost of $197,139. Zollar is the only insider at the company to buy shares over the past two years. This year, there have been two insider sales, both from company Senior Vice Presidents. Going further back, the company CFO sold about 30% of his holdings for over $5.1 million in early 2023. Overall, IBM ...
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Unusual Options Activity: Newell Brands (NWL)
Household goods manufacturer Newell Brands (NWL) is up 22% over the past year, lagging the stock market. But shares are starting to trend higher in recent sessions. One trader is eyeing further profits in the months ahead. That’s based on the March 21, 2025 $11 calls. With 123 days until expiration, 10,070 contracts traded compared to a prior open interest of 164, for a 61-fold rise in volume on the trade. The buyer of the calls paid $0.30 to make the ...
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Confident Consumers Point to a Continued Win for this Fast-Growing Play
While the market is having a great year, consumers were feeling lackluster going into the election. That trend is rapidly changing, as it’s likely that economic policies to focus on economic growth will take center stage. That bodes well for growth stocks, especially smaller stocks that could benefit from lower taxes and deregulation. And for investors in the right growth spot, returns can be huge. For instance, investors in Cava Group (CAVA), a fast-growing casual Mediterranean restaurant chain, have already seen revenues ...
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Insider Activity Report: Rockwell Automation (ROK)
Christian Rothe, CFO of Rockwell Automation (ROK), recently bought 7,273 shares. The buy came to a total cost of $2,000,904, and is a new position for the executive. This is only the second insider buy at the company over the past two years, following a 3,500 share buy form the company CEO in February for $992,758. Otherwise, insiders have largely been sellers of shares, usually following the exercise of stock options. Overall, Rockwell insiders own 0.2% of shares. The industrial automation designer ...
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Unusual Options Activity: Huntington Bancshares (HBAN)
Regional bank Huntington Bancshares (HBAN) has been on a tear, rallying 60% over the past year, producing nearly twice the returns of the S&P 500. One trader sees shares trending higher in the weeks ahead. That’s based on the December 20 $19 calls. With 35 days until expiration, 5,377 contracts traded compared to a prior open interest of 154, for a 35-fold rise in volume on the trade. The buyer of the calls paid $0.20 to make the bullish bet. Huntington shares ...
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Bet on Strong Consumer Spending
Since the election, markets have shifted back to rally mode. Optimism is back, as it’s likely that growing the economy will be the focus out of Washington for the next four years. If that’s the case, then stocks have more room to rally. And the big winners could be smaller players in their industry that benefit from higher growth and increased deregulation. Traders are already making their bets, but these plays have more room to rally. Given that consumers are getting more ...
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Insider Activity Report: Terex Corp (TRX)
David Sachs, a director at Terex Corp (TRX), recently bought 10,000 shares. The buy increased his stake by 2%, and came to a total cost of $569,800. This is the first insider buy since August, when another company director bought 2,205 shares, paying $119,864. One company insider has been a seller recently, a division president who sold off nearly 10% of his stake for just over $1 million. Going further back, insiders were more likely to be sellers. Overall, ...
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