Cannabis Multi-State Operator Ayr Wellness Seeks New CEO After David Goubert's Departure: 'Next Phase Of Growth' Coming?
David Goubert has resigned as president and CEO of Ayr Wellness Inc. AYR AYRWF, a Miami-based cannabis multistate operator, after less than a year in the role.
Goubert, who joined the company as president in October of 2022 and took over as CEO in February 2023, is the latest in a series of executive departures at the company, MJBizDaily reported.
The resignation was announced alongside Ayr’s second-quarter earnings report, which revealed a slight dip in earnings and growing net losses.
Ayr’s board of directors has initiated a search for a permanent CEO, while Steven Cohen, previously an external legal adviser, will serve as interim CEO.
Are Leadership Changes Enough?
In the second quarter of 2024, the company reported a slight decrease in revenue, down 0.6% from the previous quarter to $117.3 million.
While the MSO managed to reduce its overall expenses, net losses increased to $38 million, a significant jump from the $29 million reported a year earlier.
The company has been attempting to stabilize its financial footing amid these losses. As Goubert explained before his resignation, Ayr was focused on “laying the groundwork for Ayr’s next phase of growth.”
Interim Leadership
Cohen, who will assume the role of interim CEO, brings a legal and corporate governance background but lacks direct cannabis industry experience. He is a founding member of Blue Raven, a New York-based legal advisory firm specializing in strategic corporate advice and general counsel services.
Cohen’s appointment follows another notable departure, Jonathan Sandelman, who stepped down as director and executive chair in July, marking the second high-profile exit within just a few months.
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HubSpot To Gain Market Share With AI Innovations and Strong Retention, Bullish Analyst Says
Piper Sandler analyst Brent Bracelin maintained an Overweight rating on HubSpot Inc HUBS with a $570 price target.
Bracelin expects HubSpot to gain market share due to its highly efficient GTM effort combined with organic product development, which results in customer satisfaction and structurally higher gross dollar retention in the high 80s.
The analyst noted that the company is increasing, expanding at three times the market’s 11% rate over the last four years, yet its share is still a tiny 4%.
Also Read: HubSpot Analysts Cut Their Forecasts After Q2 Results
In the near term, HubSpot faces headwinds in macro and foreign exchange, but the company expects to recover quickly when the economy strengthens.
Bracelin attended the HubSpot customer conference (Inbound) and analyst day in Boston, MA, which left him incrementally positive that moving past the election or interest rate cuts could spur new customer spending growth.
The analyst remains impressed with HubSpot’s product innovations, which drive substantial customer net additions and above-market growth despite two years of challenging macroeconomic conditions.
The company discussed a new series of AI product innovations, Bracelin flagged. Partner and customer discussions indicate incremental bullishness on demand trends moving into 2025.
The company also updated its long-term operating margin target from 20%-25% to 25%. Agency partners remain committed to the HubSpot platform and, despite a change in commission structure, continue to drive net new business for the company, the analyst noted.
CEO Yamini Rangan’s keynote address highlighted the key challenge for HubSpot’s customers over the last two years. Bracelin noted that this challenge is highly correlated to the recent interest rate cycle, making attracting and retaining customers more demanding.
Management continues accelerating AI product development with several new modules released at Inbound 2024.
During the keynote session, Bracelin noted that CTO and co-founder Dharmesh Shah highlighted HubSpot’s development of a “LinkedIn”-style interface where customers can search for and utilize AI agents for various use cases.
Based on partner discussions, the analyst summarized his conclusions. Near-term trends are improving, with July and August being better than May and June, Bracelin noted.
Bracelin spoke with several ZoomInfo Technologies Inc ZI partners and direct customers, who indicated that more SMB churn could be on the company’s horizon.
During the formal investor session, management highlighted core tenets of the HubSpot platform, including ease of use, fast time to value, and a unified platform built organically, the analyst noted. The company discussed usage-based pricing for the first time, which could be on the horizon.
Bracelin projected fiscal 2024 revenue of $2.57 billion and EPS of $7.66.
Price Action: HUBS stock is up 4.86% at $528.52 at the last check on Thursday.
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Investors should be hesitant to dive into stocks after the rate cut, with election uncertainty looming, Fundstrat's Tom Lee says
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Tom Lee has long called for a stock market rally after the Federal Reserve cuts interest rates.
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But after Wednesday’s big 50 basis point cut, Lee says he sees uncertainty looming ahead of the election.
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Other analysts have also warned of volatility leading up to the November vote.
Prominent stock market bull Tom Lee has long called for a big rally after the Federal Reserve cuts interest rates.
But after a big 50 basis point cut on Wednesday, Lee says he’s feeling cautious ahead of the November election.
“This Fed cut cycle I think is setting the stage for markets to be really strong over the next one month or next three months,” Lee, co-founder and head of research at Fundstrat Global Advisors, told CNBC in a Thursday interview.
“But, what the stocks do between now and let’s say election day, I think is still a lot of uncertainty. And that’s the reason why I’m a little hesitant for investors to dive in,” he added.
In the days leading up to the Fed’s policy meeting, Lee said a rate cut would position stocks for a multi-week rally, bolstered by further confidence that more rate cuts are on the horizon and that a soft landing is in the cards.
That rally would happen regardless of a 25 or 50 basis point cut, he said, if the Fed suggested future cuts are likely. Even then, though, Lee acknowledged there would be volatility leading up to the election, but would calm down afterward for a strong year ahead.
Lee has been bullish on stocks for years, with predictions that the S&P 500 could triple, hitting 15,000 by 2030.
Other analysts have also acknowledged the market volatility associated with presidential elections.
That volatility typically peaks in mid-October ahead of the elections in November, after which stocks see a relief rally once the outcome is known, SoFi’s Liz Young Thomas told Business Insider earlier this month.
With election-related volatility ahead, Lee recommends investing in cyclical stocks in areas like industrials, financials, and small caps.
Small-cap shares, in particular, will benefit from rate cuts and what Lee calls a “cyclical boost to the economy,” which will result from a drop in consumers’ costs like mortgages, auto loans, and credit cards.
“All these are big tailwinds for small caps,” he said.
Read the original article on Business Insider
What's Going On With Toronto-Dominion Bank Today?
Toronto-Dominion Bank Corp. TD shares are seeing positive movement Thursday. Here’s what you need to know.
What To Know: The bank revealed that Bharat Masrani, who has served as CEO for over a decade and spent 38 years at the institution, will retire on April 10 2025. Masrani’s tenure saw significant milestones but also faced challenges, particularly toward the end of his leadership, as TD dealt with an unraveling $13.4 billion acquisition of First Horizon Corp and investigations into lapses in money-laundering controls at U.S. branches.
In response to these developments, TD Bank Group’s Board of Directors has named Raymond Chun, currently Group Head of Canadian Personal Banking, as the successor. Chun will step into the role of Chief Operating Officer on November 1 2024, with responsibility for all business lines, before officially taking over as CEO on April 10 2025. This move is part of TD’s ongoing efforts to strengthen its leadership and reassure stakeholders during a challenging period for the bank.
What Else: The leadership transition is taking place while the bank grapples with investigations by the U.S. Department of Justice and financial regulators over its handling of money-laundering controls in its American branches—a division that Masrani had previously overseen. The fallout from these issues has led to the departure of several top executives in the bank’s legal and compliance departments, contributing to uncertainty about the company’s direction.
Price Action: TD shares were trading higher by 2.27% at $64.01 according to Benzinga Pro.
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Trump Media shares face potential sell-off as insider selling restrictions lift
By Medha Singh and Noel Randewich
(Reuters) – While former U.S. President Donald Trump has said he will not sell his $1.7 billion stake in Trump Media after restrictions likely expire on Thursday, other insiders could soon cash in their gains.
Trump Media & Technology Group is 57% owned by the Republican presidential candidate who told reporters last Friday that he does not plan to sell his shares.
Other major stakeholders who could soon sell their shares include United Atlantic Ventures and Patrick Orlando, whose fund, ARC Global Investments II, sponsored the blank-check company that merged with Trump Media in March. The two own a combined 11% of Trump Media, according to a company filing.
“Even if Trump doesn’t, it would be interesting if other insiders begin selling because that would be a clue as to what they think his mindset is about selling,” said Steve Sosnick, chief strategist at Interactive Brokers.
Trump Media insiders could sell their shares as early as after the bell on Thursday if the stock ends the regular trading session at or above $12, according to a provision in the company’s prospectus.
Shares were last down 4% at $15, extending sharp losses in recent weeks fueled by worries about the end of so-called lock-up period related to its stock market debut in March.
Trump and other insiders, including Chief Operating Officer Andrew Northwall, Chief Technology Officer Vladimir Novachki and director Donald Trump Jr., did not respond to Reuters’ requests for comment on their plans after the lock-up expires.
Trump Media did not respond to a request for a comment.
The size of ARC’s stake in Trump Media is in dispute. A Delaware judge this week ruled ARC Global should receive 8.19 million shares of Trump Media, more than the roughly 7 million shares that the company has said that ARC was entitled to.
Separately, Truth Social cofounders Andy Litinsky and Wes Moss have also sued TMTG for damages for preventing them from selling their stock sooner.
Orlando and Moss did not immediately reply to requests for comment, while Litinsky could not be reached for a comment.
Newly listed companies often see pressure on their stocks ahead of the end of their lock-up period, when insiders become free to sell their often considerable stakes.
Trump Media, which operates the Truth Social app, saw its value balloon to nearly $10 billion following its Wall Street debut, lifted by retail traders and traders who see it as a speculative bet on his chances of securing a second four-year term as president.
However, after reaching that peak, Trump Media shares have lost most of their value, with declines accelerating in recent weeks after President Joe Biden gave up his reelection bid on July 21, and Trump lost a lead in opinion polls ahead of the Nov. 5 presidential election to Democratic candidate Vice President Kamala Harris. Betting markets now show Harris with a modest advantage over Trump in a tight race.
Trump Media’s revenue is equivalent to two Starbucks coffee shops, and strategists say its $3 billion stock market value is detached from its day-to-day business.
Its stock is trading at the equivalent of over 1,000 times its revenue, far exceeding the valuation of even AI superstar Nvidia, which recently traded at 24 times its revenue.
“The market couldn’t absorb even a partial stake sale without some material damage to the stock,” Sosnick said.
“Ultimately a lot will hinge on whether (Trump) keeps his word on not selling while the longer term prospects of the company are completely dependent upon his electoral prospects.”
Insiders Stake as % of outstanding
TMTG shares
Donald Trump 56.6%
United Atlantic 5.5%
Ventures llc
ARC Global 5.5%
Investments
Phillip Juhan 0.2%
Devin Nunes 0.06%
Scott Glabe 0.01%
(Reporting by Noel Randewich and Medha Singh; Additional reporting by Lance Tupper and Tom Hals; Editing by Megan Davies and Diane Craft)
Mission Produce Board Member Sold $1.92M In Company Stock
Disclosed on September 18, Jay A Pack, Board Member at Mission Produce AVO, executed a substantial insider sell as per the latest SEC filing.
What Happened: Pack’s decision to sell 145,350 shares of Mission Produce was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,922,893.
During Thursday’s morning session, Mission Produce shares up by 0.07%, currently priced at $13.37.
Delving into Mission Produce’s Background
Mission Produce Inc is engaged in the business of producing and distributing avocados, serving retail, wholesale, and food service customers. Also, the company provides additional services like ripening, bagging, custom packing, and logistical management. The company’s operating segments include Marketing and Distribution and International Farming and Blueberries. It generates maximum revenue from the Marketing and Distribution segment. The Marketing and Distribution segment sources fruit mainly from growers and then distributes fruit through a distribution network.
Mission Produce: Delving into Financials
Revenue Growth: Mission Produce’s revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 23.95%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.
Exploring Profitability:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 11.42%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Mission Produce exhibits below-average bottom-line performance with a current EPS of 0.17.
Debt Management: Mission Produce’s debt-to-equity ratio is below the industry average at 0.45, reflecting a lower dependency on debt financing and a more conservative financial approach.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 40.52 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.83 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 12.97 reflects market recognition of Mission Produce’s value, positioning it as more highly valued compared to industry peers.
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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Delving Into the Significance of Insider Transactions
Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Mission Produce’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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Why KB Home Might Surprise This Earnings Season
Investors are always looking for stocks that are poised to beat at earnings season and KB Home KBH may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because KB Home is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for KBH in this report.
In fact, the Most Accurate Estimate for KBH for the to-be-reported quarter is currently pegged higher than the broader Zacks Consensus Estimate of $2.04 per share. This suggests that analysts have very recently bumped up their estimates for KBH, giving the stock a Zacks Earnings ESP of +0.08% heading into earnings season.
KB Home Price and EPS Surprise
KB Home price-eps-surprise | KB Home Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns.
Given that KBH has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings.
Clearly, recent earnings estimate revisions suggest that good things are ahead for KB Home, and that a beat might be in the cards for the upcoming report.
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Recent Price Trend in Zealand Pharma AS is Your Friend, Here's Why
While “the trend is your friend” when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn’t easy.
Often, the direction of a stock’s price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it’s important to ensure that there are enough factors — such as sound fundamentals, positive earnings estimate revisions, etc. — that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our “Recent Price Strength” screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Zealand Pharma A/S
ZLDPF is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for “trend” investors.
A solid price increase over a period of 12 weeks reflects investors’ continued willingness to pay more for the potential upside in a stock. ZLDPF is quite a good fit in this regard, gaining 7.2% over this period.
However, it’s not enough to look at the price change for around three months, as it doesn’t reflect any trend reversal that might have happened in a shorter time frame. It’s important for a potential winner to maintain the price trend. A price increase of 0.1% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, ZLDPF is currently trading at 91.8% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises — the key factors that impact a stock’s near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988.
Another factor that confirms the company’s fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock’s near-term price performance.
So, the price trend in ZLDPF may not reverse anytime soon.
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