California Cannabis Company Lowell Farms Reports 48% YoY Revenue Decline In Q3
California cannabis company Lowell Farms Inc. LOWLF announced its unaudited revenue and operating results Thursday for the third quarter of 2024, reporting net revenue of $3.2 million, down 48% from $6.2 million in the same period last year. Net revenue decreased by 8% from $3.5 million in the second quarter of 2024.
“We’re happy to share the progress Lowell Farms made towards expanding our footprint into the California retail market,” stated co-founder and CEO Mark Ainsworth. “This strategic move marks a new chapter for us, enabling us to further showcase the strength of our brand portfolio, now in our own retail spaces and deliver an enhanced customer experience. As we focus on strategic, selective growth, we’re confident that this expansion will solidify Lowell’s position in the market, bringing us closer to our vision for sustainable and meaningful growth.”
Read Also: IM Cannabis: 66% Revenue Growth In Germany, Narrows EBITDA Loss In Q3
Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.
Q3 Financial Highlights
- CPG revenue decreased 26% compared to the same quarter of 2023.
- Bulk product revenue from self-grown wholesale products was $nil million compared to $1.2 million for the quarter ended Sept. 30, 2023, reflecting our exit from the cultivation facility in January 2024.
- Gross margin was negative 29.0% representing a gross loss of $900,000, reflecting the sell through of higher cost inventory associated with the cultivation facility which adversely impacted cost of goods sold by $600,000 in the third quarter.
- Operating loss was $2.8 million, compared to operating loss of $2.9 million for the same period last year.
- Net loss was $3.6 million compared to a net loss of $20.2 million for the comparable period of 2023.
- Adjusted EBITDA was negative $2.1 million compared to adjusted EBITDA of negative $1.4 million for the third quarter last year.
Price Action
Lowell Farms shares closed Thursday’s market session flat at $0.015 per share.
Read Next:
Photo: Courtesy of YARphotographer via Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.
British Economy Slows On Lackluster Services, Budget Jitters
The British economy expanded less than forecast in the third quarter as the service sector and budget concerns slowed momentum.
Gross domestic product (GDP) grew by 0.1% for the quarter, compared with growth of 0.5% in Q2, data from the Office for National Statistics (ONS) showed on Friday. That compared with economists’ expectations of 0.3% for Q3.
“The economy grew a little in the latest quarter overall as the recent slowdown in growth continued,” Liz McKeown, Director of Economic Statistics at ONS, said. “Generally, growth was subdued across most industries in the latest quarter.”
The services sector, which accounts for 79% of the UK’s GDP, rose only 0.1%, weighing on the UK GDP as technical activities and wholesale and retail trade showed marginal improvements. Business-facing services saw no growth.
British Economy Hurt By Manufacturing Contraction
The British economy contracted by 0.1% in September month-on-month, missing forecasts of a 0.1% expansion. Services on a monthly basis showed “no growth,” McKeown said, adding that “production fell overall, driven by manufacturing,” with a contraction of 1%.
The weak data underlines the challenges that the Labour Party faces as it tries to revive economic growth. Industrial production contracted by 0.5% in September, missing forecasts of 0.2% growth month-on-month.
The British pound fell to the lowest level against the dollar since early July, extending a five-day decline to $1.2629. The pound has been weighed down by fears of trade escalation and poor relations with the US under President-elect Donald Trump.
British Foreign Secretary David Lammy has described Trump as “deluded, dishonest, xenophobic, narcissistic” and a “neo-Nazi-sympathizing sociopath.”
Slow British Economy Growth Brings Rate Cut On Table
The latest UK GDP figures have shifted the focus on the Bank of England’s (BoE) monetary policy trajectory. The BoE lowered interest rates on November 6 by 0.25 percentage points to 4.75%, the second cut this year.
“We shouldn’t overthink the GDP numbers we’ve been getting recently,” ING said. “The Bank of England has made it abundantly clear that it’s not putting much weight on them. Barring any downside surprises, we think the next move in December is a pause, before another rate cut in February.”
Most economists broadly expect a hold on December 19, when the Monetary Policy Committee meets next. But some argue that the UK GDP data make a solid case for a rate cut.
The data “are likely to open the door” to cuts before year’s end, Wealth Club investment manager, Isaac Stell, said. If growth slows again, there is a “good chance” of cuts, University of Liverpool Management School Professor, Costas Milas, said.
Labour Faces Challenges Spurring British Economy
Chancellor Rachel Reeves has made improving GDP at “the heart of everything.” The budget “tackled” public finances and greater public investment “in our plan for economic growth,” Reeves said on November 14.
The fiscal plan will provide “economic stability” by putting “our public finances back on a firm footing,” she said. “Instability in our public finances leads to instability in our financial markets. That is not good for investment.”
The government increased taxes by £40 billion to repair public finances and improve public services. It earmarked £22.6 billion for the National Health Service and a 1.2% increase in employers’ national insurance contributions.
Conservative MP Robert Jenrick called the tax increase “the biggest heist in modern history.” Conservative leader Kemi Badench questioned why Labour’s strategy always focused on “higher taxes, more borrowing, and lower growth.”
British Economy Faces ‘Big Risks’ in Budget
Reeves has argued that the tax hikes, aimed at the wealthiest, are necessary to sustain investments in healthcare, education, and infrastructure. However, the director of the Institute for Fiscal Studies (IFS), Paul Johnson, warned of “big risks lurking” in the budget.
“Big increases in taxes and borrowing are not costless,” he wrote on October 31. “Not all of the extra borrowing, by any means, was for investment spending.”
The Office for Budget Responsibility (OBR) cautioned on October 30 that rising government debt levels could put upward pressure on inflation. Having fallen back to around the 2% target in mid-2024, “we expect CPI inflation to pick up to 2.6% in 2025 partly due to the direct and indirect impact of Budget measures,” it said.
The British Chambers of Commerce (BCC) has warned of further employment costs and how much businesses could absorb. This could weaken GDP growth, which the OBR projects at 1.1% for 2024 and 2% for 2025.
“We need urgent action to drive growth, tackle the skills crisis, boost workforce health and reduce inactivity in the labor market,” the BCC said on November 12.
Public Spending Alone Won’t Spur British Economy
The government plans to spend £975 million over the next five years to create “thousands” of jobs in the aerospace industry. The extension will speed up innovation, create job opportunities and support an industry, the government said.
Deputy chief economist Luke Bartholomew at abrdn believes the budget will expand the UK government’s spending by £70bn over the next five years. This will lead to higher inflation and growth next year, he said.
For BoE governor Andrew Bailey, government spending won’t be enough to spur growth, especially as borrowing costs remain elevated. The average annual potential growth rate fell to 0.7% between 2020-2023, down from 1.3% between 2009-2019 and 2.6% between 1990-2008.
Business investment in the UK has been particularly weak by G7 standards,” he said in a speech on November 14. “We need to encourage business investment in the UK,” he said.
“Public investment is important as a foundation,” he said. “But, to those who have pointed out that this will not raise the potential growth rate substantially, my response is ‘of course not.'”
Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stocks Tumble as Post-Election Euphoria Fades: Markets Wrap
(Bloomberg) — Stocks fell as Trump trades lost steam and investors bet the Federal Reserve will have to slow the pace of policy easing.
Most Read from Bloomberg
The S&P 500 dropped for a second day, with tech stocks leading the decline. Including losses on Friday, the benchmark has now ceded more than half of the trough-to-peak gains it notched after the US presidential election.
Bond yields ticked higher as traders now see the probability of a quarter-point cut next month as a coin toss after a report on retail sales included large upside revision to September’s figure.
As the initial euphoria about Trump’s pro-business agenda begins to fade, investors are coming to terms with the costs of his fiscal plans and their potential to reignite inflation.
“It will come at the expense of potentially larger budget deficits, potentially larger debt and there is also the inflation dimension,” said Charles-Henry Monchau, chief investment officer at Banque Syz & Co. “There’s been a realization that there is a price to pay for this.”
The S&P 500 fell 1.2% and the tech-heavy Nasdaq 100 dropped more than 2%. Yields on 10-year Treasuries jumped to 4.5%, the highest since May 31.
Traders priced in a 50% chance the Fed will deliver a quarter-point reduction at its December meeting, down from 80% earlier this week. Bets on cuts were pared after Fed Chair Jerome Powell warned Thursday that the central bank may take its time easing policy. Boston Fed President Susan Collins said Friday a December cut remained on the table, emphasizing the central bank’s decision will be guided by incoming data.
Meanwhile, drugmakers Moderna Inc. and Pfizer Inc. came under pressure in New York trading after Trump named a prominent vaccine skeptic Robert F. Kennedy Jr. to a top health-policy role.
The greenback eased off two-year highs but is on track for its seventh straight weekly gain. Another of the so-called Trump trades, Bitcoin, has given up some gains this week, trading below $90,000 on Friday after hitting a record level above $93,000 earlier this week on hopes of crypto-friendly policies from the new US administration.
Some of the main moves in markets:
Stocks
-
The S&P 500 fell 1.2% as of 11:37 a.m. New York time
-
The Nasdaq 100 fell 2.1%
-
The Dow Jones Industrial Average fell 0.7%
-
The Stoxx Europe 600 fell 0.8%
-
The MSCI World Index fell 1%
Market Whales and Their Recent Bets on VKTX Options
Investors with a lot of money to spend have taken a bearish stance on Viking Therapeutics VKTX.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don’t know. But when something this big happens with VKTX, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga‘s options scanner spotted 14 uncommon options trades for Viking Therapeutics.
This isn’t normal.
The overall sentiment of these big-money traders is split between 42% bullish and 50%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $521,480, and 7 are calls, for a total amount of $238,153.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $40.0 and $100.0 for Viking Therapeutics, spanning the last three months.
Insights into Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Viking Therapeutics options trades today is 344.29 with a total volume of 1,535.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Viking Therapeutics’s big money trades within a strike price range of $40.0 to $100.0 over the last 30 days.
Viking Therapeutics Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VKTX | PUT | SWEEP | BULLISH | 05/16/25 | $22.3 | $22.1 | $22.2 | $67.50 | $288.6K | 73 | 138 |
| VKTX | CALL | TRADE | BULLISH | 05/16/25 | $3.4 | $3.3 | $3.4 | $100.00 | $68.0K | 545 | 207 |
| VKTX | PUT | TRADE | BEARISH | 12/06/24 | $20.1 | $16.5 | $18.95 | $70.00 | $56.8K | 83 | 30 |
| VKTX | PUT | TRADE | NEUTRAL | 01/16/26 | $33.9 | $32.4 | $33.08 | $75.00 | $52.9K | 373 | 16 |
| VKTX | PUT | TRADE | BULLISH | 11/22/24 | $5.2 | $4.8 | $4.92 | $55.00 | $34.4K | 155 | 152 |
About Viking Therapeutics
Viking Therapeutics Inc is a healthcare service provider. The company specializes in the area of biopharmaceutical development focused on metabolic and endocrine disorders. The company’s clinical program pipeline consists of VK2809, VK5211, VK0214 products. VK2809 and VK0214 are orally available, tissue and receptor-subtype selective agonists of the thyroid hormone receptor beta. VK5211 is an orally available, non-steroidal selective androgen receptor modulator.
In light of the recent options history for Viking Therapeutics, it’s now appropriate to focus on the company itself. We aim to explore its current performance.
Viking Therapeutics’s Current Market Status
- Currently trading with a volume of 2,854,236, the VKTX’s price is down by -4.56%, now at $51.13.
- RSI readings suggest the stock is currently may be approaching oversold.
- Anticipated earnings release is in 82 days.
Expert Opinions on Viking Therapeutics
2 market experts have recently issued ratings for this stock, with a consensus target price of $96.0.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access.
* Reflecting concerns, an analyst from HC Wainwright & Co. lowers its rating to Buy with a new price target of $90.
* Consistent in their evaluation, an analyst from HC Wainwright & Co. keeps a Buy rating on Viking Therapeutics with a target price of $102.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Viking Therapeutics, Benzinga Pro gives you real-time options trades alerts.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cannabis Co. Vireo Reports 2% YoY Revenue Growth, Secures $10M In Financing
Vireo Growth Inc., formerly known as Goodness Growth Holdings, VREO VREOF reported on Wednesday financial results for its third quarter ended Sept. 30, 2024.
“Our third quarter results reflect continued solid performance across our core markets, but as we discussed anticipating last quarter, year-over-year comparisons of financial performance are less significant now that we have passed the one-year anniversary of the launch of adult-use sales in Maryland,” CEO Amber Shimpa said. “Our teams continue to focus on preparing for the launch of adult-use sales in Minnesota next year, and our recently announced $10.0 million financing commitment gives us additional flexibility to support this launch and continue executing our CREAM & Fire strategy.”
- Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.
Q3 2024 Financial Highlights
- Revenue increased by 2% year-over-year to $25.2 million
- Revenue, excluding discontinued operations and the New York market, was up 6.2% year-over-year.
- Gross profit decreased by 6.6% year-over-year, reaching $12.3 million, with a gross margin of 49%, down from 53.5% in the prior year’s quarter.
- Operating income was $3.9 million, down 34.4% compared to the previous year’s third quarter.
- EBITDA dropped 19.4% to $5.7 million.
- Selling, general and administrative expenses increased by 2.4% year-over-year.
- Retail revenue grew 2% year-over-year and wholesale revenue saw a 24.4% increase over the same period.
- Vireo’s operations in Maryland and Minnesota showed mixed results with Maryland achieving 12.1% year-over-year growth, while Minnesota saw a slight decline.
In November, Vireo secured a new $10 million convertible debt facility to support its upcoming adult-use sales launch in Minnesota and continued operations.
VREOF Price Action
Vireo’s shares traded 5.15% lower at 4 cents per share after the market close on Thursday afternoon.
Read Also:
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.
Synopsys Unusual Options Activity
Deep-pocketed investors have adopted a bearish approach towards Synopsys SNPS, and it’s something market players shouldn’t ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in SNPS usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga’s options scanner highlighted 8 extraordinary options activities for Synopsys. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 25% leaning bullish and 37% bearish. Among these notable options, 3 are puts, totaling $88,885, and 5 are calls, amounting to $268,163.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $520.0 to $670.0 for Synopsys during the past quarter.
Volume & Open Interest Development
In today’s trading context, the average open interest for options of Synopsys stands at 140.67, with a total volume reaching 322.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Synopsys, situated within the strike price corridor from $520.0 to $670.0, throughout the last 30 days.
Synopsys Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SNPS | CALL | SWEEP | BEARISH | 09/19/25 | $54.7 | $54.5 | $54.5 | $600.00 | $76.3K | 13 | 18 |
| SNPS | CALL | SWEEP | NEUTRAL | 01/17/25 | $41.8 | $36.7 | $38.0 | $520.00 | $61.7K | 43 | 0 |
| SNPS | CALL | SWEEP | BULLISH | 12/20/24 | $3.5 | $3.5 | $3.5 | $620.00 | $46.2K | 367 | 154 |
| SNPS | CALL | SWEEP | NEUTRAL | 01/17/25 | $29.3 | $28.4 | $28.0 | $540.00 | $45.7K | 105 | 5 |
| SNPS | CALL | SWEEP | BULLISH | 09/19/25 | $54.5 | $54.5 | $54.5 | $600.00 | $38.1K | 13 | 33 |
About Synopsys
Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm’s growing SI business allows customers to continuously manage and test the code base for security and quality. Synopsys’ comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.
Having examined the options trading patterns of Synopsys, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Synopsys’s Current Market Status
- With a trading volume of 217,362, the price of SNPS is down by -3.59%, reaching $528.62.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 19 days from now.
Expert Opinions on Synopsys
A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $658.75.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access.
* An analyst from Loop Capital downgraded its action to Buy with a price target of $675.
* Consistent in their evaluation, an analyst from Piper Sandler keeps a Overweight rating on Synopsys with a target price of $670.
* In a cautious move, an analyst from Mizuho downgraded its rating to Outperform, setting a price target of $650.
* An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $640.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Synopsys options trades with real-time alerts from Benzinga Pro.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
$99 Billion Bet: Warren Buffett Invests Heavily In 2 Stocks Expected To Jump 19% And 20%, Wall Street Analysts Predict
Warren Buffett’s investment strategy is a case study in bold and safe play. Nearly $99 billion is pegged on two iconic names: Apple and Coca-Cola. Through Berkshire Hathaway, Buffett has channeled a whopping half of his equity holdings into Apple alone and he’s held tight to his Coca-Cola shares since the late 1980s.
Don’t Miss:
His strategy here is simple but powerful – backing companies with brand strength and consistent financials. Apple’s stock, for instance, surged 31% this year and many see this as Buffett’s savviest move yet. Some say it’s his “crown jewel,” lauding his foresight in spotting a tech company that’s proven as resilient as it is profitable.
But as with any big bet, Buffett’s heavy reliance on Apple has sparked some chatter. Skeptics say putting so many eggs in one tech basket could be risky. With tech stocks, there’s always the threat of shifting consumer trends, not to mention the occasional market shake-up.
Trending: The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.
And while Apple has shown impressive gains this year, the latest numbers hint at a slight cooling. In the last fiscal year, Apple’s total revenue dipped by 0.8% – a small shift but enough to raise eyebrows. Still, Morgan Stanley analyst Erik Woodring believes Apple has room to climb, setting a price target of $273, which would mark a 20% rise from current levels.
Apple’s pivot toward services is holding it steady. Though iPhone sales may ebb and flow, Apple’s revenues from the App Store, streaming and cloud services have grown by 23% over the past few years.
Services have also helped Apple boost its profit margins, going from 43.3% in 2022 to 46.2% in 2024, catching Wall Street’s attention. These margins and the cash flow from services make Apple’s high share prices easier to swallow, especially as it could mean bigger dividends for shareholders.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.
Christopher T Jenny Implements A Sell Strategy: Offloads $1.14M In CBRE Group Stock
Disclosed on November 14, Christopher T Jenny, Board Member at CBRE Group CBRE, executed a substantial insider sell as per the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Jenny sold 8,444 shares of CBRE Group. The total transaction value is $1,144,428.
During Friday’s morning session, CBRE Group shares down by 0.0%, currently priced at $132.0.
Unveiling the Story Behind CBRE Group
CBRE Group provides a wide range of real estate services to owners, occupants, and investors worldwide, including leasing, property and project management, and capital markets advisory. CBRE’s investment management arm manages over $140 billion for clients across diverse public and private real estate strategies.
Financial Insights: CBRE Group
Revenue Growth: CBRE Group displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 14.84%. This indicates a notable increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Real Estate sector.
Exploring Profitability:
-
Gross Margin: The company faces challenges with a low gross margin of 19.74%, suggesting potential difficulties in cost control and profitability compared to its peers.
-
Earnings per Share (EPS): CBRE Group’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.73.
Debt Management: CBRE Group’s debt-to-equity ratio is below the industry average at 0.79, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyzing Market Valuation:
-
Price to Earnings (P/E) Ratio: The P/E ratio of 42.72 is lower than the industry average, implying a discounted valuation for CBRE Group’s stock.
-
Price to Sales (P/S) Ratio: The P/S ratio of 1.19 is lower than the industry average, implying a discounted valuation for CBRE Group’s stock in relation to sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 23.63 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Pay Attention to Insider Transactions
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Breaking Down the Significance of Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 CBRE Group’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trump's DOGE Plan: Goldman Sachs Says Defense Stocks Face Risks, IT Firms Could Win
President-elect Donald Trump‘s proposed Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, is raising questions about the future of U.S. defense contractors and government IT firms.
Could the defense budget flatten—or even fall? And who stands to gain in this new sector shake up?
DOGE Puts Defense Budget Under Pressure
Trump’s plan to restructure federal agencies and reduce wasteful spending through DOGE is a bold move, and its potential ripple effects are hard to ignore—especially for defense and government IT companies.
With the Department of Defense (DoD) being one of the largest slices of federal spending, investors are understandably focused on what’s next for defense stocks in a DOGE-driven world.
On one hand, Trump’s campaign has consistently expressed support for strengthening the U.S. military.
On the other, it’s hard to make sweeping government cuts without touching the $877 billion defense budget, which accounts for 13% of federal spending as of 2023.
Read Also: Elon Musk, Vivek Ramaswamy-Led Department Of Government Efficiency Opens Account On X
Defense Spending At All-Time Highs Spells Risks
Historically, defense spending runs in decades-long cycles. Investment in the sector experiences periods of growth followed by downturns, and we may be nearing the peak of the current cycle, according to Goldman Sachs analyst Noah Poponak.
“The defense budget is at an all-time high, which creates difficult comparisons and challenging base effects,” the analyst said in a note published Friday.
Key Risks For Defense Stocks
- Peak Spending: The defense budget is hovering at historical highs, making future growth difficult.
- Geopolitical Shifts: If major conflicts ease, defense spending could decline.
- Government Debt: U.S. debt-to-GDP ratios are near record levels, increasing pressure to curb federal spending.
Margins in the defense industry are already under pressure due to Pentagon efforts to shift risks onto contractors. Fixed pricing on long-term contracts, for example, has eroded unit economics.
At the same time, defense stocks – as tracked by the SPDR S&P Aerospace & Defense ETF XAR – are trading at valuations above historical averages, leaving them vulnerable to a “de-rating” if the budget flattens or falls.
“It is difficult to embark on any large government spending reduction effort without touching defense, and there are potentially enough inefficiencies within the defense budget to reduce its total level without necessarily reducing military readiness or capability,” Poponak said.
The investment bank maintains a cautious stance on the defense sector, issuing Sell ratings for Lockheed Martin Corp. LMT, Northrop Grumman Corp. NOC, L3Harris Technologies Inc. LHX, and Huntington Ingalls Industries Inc. HII.
Government IT: Winners In The Efficiency Game?
While defense hardware could take a hit, government IT firms might find themselves potentially on the winning side of DOGE.
The sector has been outperforming traditional defense industries in revenue growth, driven by a market share shift toward advanced technologies like artificial intelligence, data analytics, and cybersecurity.
Why IT Could Shine:
- Tech-Driven Efficiency: DOGE’s focus on cutting waste could emphasize the adoption of technologies that streamline government operations.
- Advanced Capabilities: Firms offering cutting-edge solutions may be seen as key enablers of government efficiency.
- Resilient Demand: Even with DoD cuts, IT spending for Operations & Maintenance and national security could remain strong.
Goldman Sachs believes that companies like Booz Allen Hamilton Holding Corp. BAH and Leidos Holdings Inc. LDOS are well-positioned to benefit.
On the flip side, SAIC Inc. SAIC faces challenges due to slower growth and tougher competition, earning it a Sell rating from Goldman Sachs.
The bottom line is that Investors should prepare for a sector shakeup, as the creation of DOGE could mark a significant shift in federal spending priorities.
Read Next:
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Syntec Optics (Nasdaq: OPTX) to Host Conference Call to Discuss Financial Results and Business Update
ROCHESTER, NEW YORK, Nov. 15, 2024 (GLOBE NEWSWIRE) — Syntec Optics OPTX, a leading provider of mission-critical products to advanced technology defense, biomedical, and communications equipment manufacturers, today announced it will host a conference call on Monday, November 18, 2024, at 5:00 p.m. Eastern Time (ET) to discuss its financial results and provide a business update.
With nearly 11% of the global GDP light-enabled, Syntec Optics Chairman and CEO Al Kapoor delivered a keynote speech on the Future of Photonics at the Global Photonics Forum in Malaga, Spain, on October 1-2, 2024. At this event organized by Optica, a Society that advances optics and photonics worldwide, 300 leaders in the global Photonics ecosystem discussed the field’s impact.
Conference Call Details:
Date: Monday, November 18, 2024
Time: 5:00 p.m. ET
Dial-In Number: +16469313860,,87521263675# (Please dial in prior to the call)
Webcast: A recording of the conference call will be available under the Latest Events section of the Investors page of Syntec Optics’ website at www.syntecoptics.com.
Replay:
A replay of the webcast will be available approximately three hours after the conclusion of the call. It will remain accessible until Friday, November 29, 2024, in the Investor Relations section of Syntec Optics’ website at www.syntecoptics.com.
About Syntec Optics
Syntec Optics Holdings, Inc. OPTX, headquartered in Rochester, NY, is one of the largest custom and diverse end-market optics and photonics manufacturers in the United States. Operating for over two decades, Syntec Optics runs a state-of-the-art facility with extensive core capabilities of various optics manufacturing processes, both horizontally and vertically integrated, to provide a competitive advantage for mission-critical OEMs. Syntec Optics recently launched new products, including Low Earth Orbit (LEO) satellite optics, lightweight night vision goggle optics, biomedical equipment optics, and precision microlens arrays. To learn more, visit www.syntecoptics.com.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to the transactions contemplated by the business combination and related agreements, future results of operations and financial position, revenue and other metrics, planned products and services, business strategy and plans, objectives of management for future operations of Syntec Optics, market size, and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the control of Syntec Optics), which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by Syntec Optics and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: 1) risk outlined in any prior SEC filings; 2) ability of Syntec Optics to successfully increase market penetration into its target markets; 3) the addressable markets that Syntec Optics intends to target do not grow as expected; 4) the loss of any key executives; 5) the loss of any relationships with key suppliers including suppliers abroad; 6) the loss of any relationships with key customers; 7) the inability to protect Syntec Optics’ patents and other intellectual property; 8) the failure to successfully execute manufacturing of announced products in a timely manner or at all, or to scale to mass production; 9) costs related to any further business combination; 10) changes in applicable laws or regulations; 11) the possibility that Syntec Optics may be adversely affected by other economic, business and/or competitive factors; 12) Syntec Optics’ estimates of its growth and projected financial results for the future and meeting or satisfying the underlying assumptions with respect thereto; 13) the impact of any pandemic, including any mutations or variants thereof and the Russian/Ukrainian or Israeli conflict, and any resulting effect on business and financial conditions; 14) inability to complete any investments or borrowings in connection with any organic or inorganic growth; 15) the potential for events or circumstances that result in Syntec Optics’ failure to timely achieve the anticipated benefits of Syntec Optics’ customer arrangements; and 16) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in prior SEC filings including registration statement on Form S-4 filed with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Syntec Optics does not give any assurance that Syntec Optics will achieve its expected results. Syntec Optics does not undertake any duty to update these forward-looking statements except as otherwise required by law.
For further information, please contact:
Sara Hart
Investor Relations
InvestorRelations@syntecoptics.com
SOURCE: Syntec Optics Holdings, Inc. OPTX
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.