Trading Tips Blog

Companies have a number of ways to fund their operating needs. A company can sell shares of stock, such as in an IPO. Selling shares dilutes existing shareholders, so companies that regularly issue shares are likely to underperform. Otherwise, companies may want to go to the debt market. By offering debt, companies aren’t diluting shareholders. But that debt adds a cost to the balance sheet that needs to come from cash flows. Overly indebted companies can be poor performers. Companies that use ...
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Mark McLaughlin, a director at Snowflake (SNOW), recently bought 3,030 shares. The buy came to a total cost of $501,314, and increased his stake by 35 percent. McLaughlin was the last director to buy with an 1,831 share pickup for just under $300,000 in May 2023. Otherwise, company insiders have been regular and steady sellers of shares, usually following the expiration of stock options. Overall, Snowflake insiders own 6.5 percent of shares. The cloud-based app platform is up 28 percent over the ...
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Shares of hotel operator Hilton Worldwide Holdings (HLT) are up 45 percent over the past year, significantly outperforming the overall market. One trader is betting on a further rally in the coming months. That’s based on the June $185 calls. With 101 days until expiration, 15,019 contracts traded compared to a prior open interest of 249, for a 60-fold rise in volume on the trade. The buyer of the calls paid $26.00 to make the bullish bet. Hilton shares recently broke ...
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Retail is typically a tough business. A retailer buys up goods that someone else has produced, and has to sell them at a profit. Competition keeps prices from moving too far higher from other sellers. And the costs to operate stores can be substantial. That kind of business model has made for great long-term returns in some of the biggest retailers. They’re able to get the lowest prices thanks to the volume of goods that they sell. But some retailers can do ...
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Arlene Yocum, a director at Cleveland Cliffs (CLF), recently bought 2,000 shares. The buy increased her position by 2 percent, and came to a total cost of $40,050. This buy comes a month after another director bought 25,000 shares, paying just over $506,000. Otherwise, company insiders have been inactive since last May, when a cluster of insiders were buyers. A few company directors were sellers last year. Overall, Cleveland Cliffs insiders own 1.8 percent of shares. The steel producer is flat over ...
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Shares of New York Community Bank (NYCB) have been under pressure in recent months. One trader is betting that shares will see some further downside this year. That’s based on the January 2025 $2.50 puts. With 312 days until expiration, 39,135 contracts traded compared to a prior open interest of 356, for a 110-fold rise in volume on the trade. The buyer of the puts paid $0.40 to make the bearish bet. NYCB recently traded for about $3.60, so shares would need ...
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A business exists to serve the needs and wants of its customers. A successful business will often look for ways to expand into more goods and services that customers demand. But mistakes can be made. And ideas that sound great may not lead to additional profits. A great company will periodically evaluate its actions and get rid of unprofitable business lines to better focus on its profit centers. For instance, energy giant Chevron (CVX), recently closed two clean fuel plants. These plants ...
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Robert Gamgort, CEO of Keurig Dr Pepper (KDP), recently added 171,821 shares. The buy increased his holding by 4 percent, and came to a total purchase price of $5 million. He was joined by the company’s CFO, who bought 85,910 shares, at a cost of about $2.5 million, and increased his stake by 65 percent. Insiders were also active buyers throughout last year, with nearly two dozen buys and just a small handful of sales. Overall, Keurig Dr Pepper insiders own ...
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