Trading Tips Blog

Berkshire Hathaway (BRK-A), a major holder of Liberty SiriusXM Group (LSXMA) recently added over 2.7 million shares in two transactions. The buy increased the company’s position by 10 percent, and came to a total cost near $85 million. That’s the first insider buy since August, when the company’s Chairman bought 140,000 shares for just under $5 million. Otherwise, there have been a few insider sales, including multiple company directors and the CEO. Overall, Liberty insiders own over 10.2 percent of shares, and ...
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Drug manufacturer Pfizer (PFE) has been in a steady downtrend for the past year. One trader is betting that downtrend will continue in the coming weeks. That’s based on the February 23 $26 puts. With 31 days until expiration, 14,207 contracts traded compared to a prior open interest of 154, for a 92-fold rise in volume on the trade. The buyer of the puts paid $0.28 to make the bearish bet. Pfizer shares recently traded for about $28, so they would need ...
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Wall Street is active with plenty of mergers and acquisitions. Even during economic downturns, some companies look to combine forces. However, history isn’t kind to most mergers. That’s because the acquiring company has to either issue a lot of stock or go into debt. Issuing too much stock dilutes shareholders. And adding on debt can reduce a company’s ability to deal with unforeseen circumstances. That’s why the end of a potential merger may actually be the best outcome for a company.. ...
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Thomas McHugh, CFO at Avadel Pharmaceuticals (AVDL), recently bought 2,000 shares. The buy increased his position by 3 percent, and came to a total cost of $29,000. The CFO was the last insider buyer with a 2,000 share pickup last August. Other company insiders, including multiple directors and the CFO have been buyers. One director with a large stake has been a seller in the past year. Overall, Avadel insiders own 4.3 percent of shares. The biopharmaceutical company has jumped 120 percent ...
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Mineral miner Rio Tinto Group (RIO) has lagged the market, losing 10 percent over the past year and sliding in recent weeks. However, one trader sees the potential for a rebound in the coming months. That’s based on the June $65 calls. With 153 days until expiration, 8,337 contracts traded compared to a prior open interest of 122, for a 68-fold rise in volume on the trade. The buyer of the calls paid $5.70 to make the bullish bet. Rio Tinto shares ...
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Big banks have kicked off earnings season. And there’s been a mixed result overall. Most banks are taking a more conservative approach, as benefits the Fed’s “higher for longer” strategy on interest rates. However, while bank lending activity is down, the market’s strong return is helping banks that have a large wealth management division to make better profits right now. That’s a trend that could likely continue. It’s a trend that bodes well for Wall Street investment bank Goldman Sachs (GS). Overall ...
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Paul Livek, a director at Red Violet (RDVT), recently added 4,900 shares. The buy increased his stake by 115 percent, and came to a total cost of $90,174. This is the first insider buy since last May, when a different director bought 2,000 shares, paying just under $49,000 to increase her stake by about 70 percent. Otherwise, a major holder sold 10,000 shares, netting about $250,000 for doing so. Overall, Red Violet insiders own about 33.7 percent of shares. The identity ...
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Uranium producer Denison Mines (DNN) handily beat the market over the past year, gaining 52 percent. One trader sees shares trending higher in the months ahead. That’s based on the July $2.50 calls. With 182 days until expiration, 28,597 contracts traded compared to a prior open interest of 242, for a massive 118-fold rise in volume on the option trade. The buyer of the calls paid $0.25 to make the bullish bet. Denison shares recently traded for about $2, so the stock ...
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