Trading Tips Blog

While earnings are the most important part of earnings season, they’re simply a yardstick that considers different accounting measures across different sectors. A different measure, cash flow, can give a sense as to a company’s ability to start and grow a dividend, buy back shares, or otherwise reward shareholders. That cash flow may not always pass down to earnings. But for a poor investment, it’s often true that earnings will look higher than cash flow indicates. With a slowing economy and slow ...
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Kevin Stephens, a director at Crown Castle Inc (CCI), recently added 1,000 shares. The buy increased his holdings by 7 percent, and came to a total cost of $117,996. The director was also the most recent buyer of shares, with a 2,000 share pickup in October 2022 that cost $247,000. One other director has been a buyer in the past year. Two company insiders were sizeable sellers of shares in April. Overall, company insiders own 0.4 percent of the cell tower ...
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Biotech company Gilead Sciences (GILD) has had a strong year, with shares up 30 percent. However, shares have started to trend lower in recent sessions, and one trader sees a further drop ahead. That’s based on the November $60 puts. With 193 days until expiration, 3,922 contracts traded compared to a prior open interest of 100, for a 39-fold rise in volume on the trade. The buyer of the puts paid $1.09 to make the bearish bet. Shares recently went for about ...
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A company can have a great product. Or a great marketing team. But if management isn’t good… the company will falter. Even a manager who knows to step aside for the team is better than an executive who makes the wrong decisions and ignores what the staff has to say. This can translate into great stock returns… or poor ones. So all said and done, company management is a key factor, even though it doesn’t show up on the balance sheet. Investing ...
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Michael Marberry, a director at American Water Works Company (AWK), recently bought 825 shares. The buy increased his holdings by 200 percent, and came to a total cost of $120,541. This marks the first insider buy at American Water Works over the past two years. Otherwise, a few company executives have been sellers of shares, largely after exercising stock options with the firm. Overall, insiders own 0.2 percent of shares. The regulated water utility is down about 4 percent in the past ...
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Oil and gas midstream company MPLX LP (MPLX) is up 2 percent over the past year, slightly trending higher even as energy prices have been moving lower. One trader sees possible upside in the weeks ahead. That’s based on the June 16 $32 calls. With 42 days until expiration, 59,400 contracts traded compared to a prior open interest of 260, for a staggering 248-fold surge in volume on the trade. The buyer of the calls paid $2.65 to make the bullish ...
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Earnings season can create a tremendous amount of short-term noise. Companies tend to focus on 90-day sprints, rather than the long run, to keep Wall Street happy. But even with that short-term focus, a company can be working towards long-term goals and get hung up in the short run. That’s especially true when a company plays to long-term trends but hasn’t seen the cycle turn favorable for those trends yet. In the tech space, chipmaker Advanced Micro Devices (AMD) took a hit ...
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Lynne Puckett, a director at Markel Corporation (MKL), recently bought 75 shares. The buy increased her holdings by 8 percent, and came to a total cost of $100,550. Other insiders have been buyers this year, including two directors in February, as well as the company CEO. Insiders have generally been buyers over the past year, but were more likely to be sellers two years ago. Overall, insiders own 2.1 percent of shares. The property and casualty insurance company is up just 2 ...
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