RH Unusual Options Activity For November 15
Investors with a lot of money to spend have taken a bearish stance on RH RH.
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 RH, 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 10 uncommon options trades for RH.
This isn’t normal.
The overall sentiment of these big-money traders is split between 10% bullish and 80%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $106,519, and 8 are calls, for a total amount of $298,502.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $310.0 to $500.0 for RH over the last 3 months.
Analyzing Volume & Open Interest
In today’s trading context, the average open interest for options of RH stands at 59.0, with a total volume reaching 242.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in RH, situated within the strike price corridor from $310.0 to $500.0, throughout the last 30 days.
RH Option Volume And Open Interest Over Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| RH | CALL | SWEEP | BEARISH | 12/13/24 | $25.4 | $23.9 | $23.69 | $320.00 | $73.0K | 0 | 38 |
| RH | PUT | SWEEP | BEARISH | 11/29/24 | $16.2 | $11.5 | $16.2 | $322.50 | $72.9K | 85 | 45 |
| RH | CALL | TRADE | BEARISH | 01/16/26 | $25.9 | $25.0 | $25.0 | $500.00 | $50.0K | 147 | 54 |
| RH | CALL | TRADE | BEARISH | 01/16/26 | $28.8 | $25.2 | $25.3 | $500.00 | $35.4K | 147 | 54 |
| RH | CALL | TRADE | BEARISH | 09/19/25 | $70.5 | $70.0 | $70.0 | $310.00 | $35.0K | 0 | 5 |
About RH
RH is a luxury furniture and lifestyle retailer operating in the $134 billion domestic furniture and home furnishing industry. The firm offers merchandise across many categories including furniture, lighting, textiles, bath, decor, and children and is growing the presence of its hospitality business with 18 restaurant locations. RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Modern and Waterworks, for example). RH is fully integrated across channels and is positioned to broaden its addressable market over the next decade by expanding abroad, with its World of RH digital platform (highlighting offerings outside of home furnishings), and with offerings in color, bespoke furniture, architecture, media, and more.
Where Is RH Standing Right Now?
- With a trading volume of 199,342, the price of RH is down by -2.24%, reaching $315.58.
- Current RSI values indicate that the stock is may be approaching oversold.
- Next earnings report is scheduled for 20 days from now.
What Analysts Are Saying About RH
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $430.0.
Unusual Options Activity Detected: Smart Money on the Move
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* An analyst from Wedbush has elevated its stance to Outperform, setting a new price target at $430.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for RH with Benzinga Pro for real-time alerts.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Insider Unloading: Christopher Brandt Sells $1.20M Worth Of Chipotle Mexican Grill Shares
On November 14, a recent SEC filing unveiled that Christopher Brandt, Chief Brand Officer at Chipotle Mexican Grill CMG made an insider sell.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Brandt sold 20,000 shares of Chipotle Mexican Grill. The total transaction amounted to $1,200,248.
At Friday morning, Chipotle Mexican Grill shares are down by 1.24%, trading at $59.17.
Discovering Chipotle Mexican Grill: A Closer Look
Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023. The Mexican concept is almost exclusively company-owned, with just two license stores opearted through a master franchise relationship with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.
Breaking Down Chipotle Mexican Grill’s Financial Performance
Positive Revenue Trend: Examining Chipotle Mexican Grill’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.01% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Exploring Profitability:
-
Gross Margin: The company shows a low gross margin of 25.49%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
-
Earnings per Share (EPS): With an EPS below industry norms, Chipotle Mexican Grill exhibits below-average bottom-line performance with a current EPS of 0.28.
Debt Management: With a below-average debt-to-equity ratio of 1.24, Chipotle Mexican Grill adopts a prudent financial strategy, indicating a balanced approach to debt management.
Evaluating Valuation:
-
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 55.64, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
-
Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 7.52 as compared to the industry average, the stock might be considered overvalued based on sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Chipotle Mexican Grill’s EV/EBITDA ratio stands at 37.23, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.
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Delving Into the Significance of Insider Transactions
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Important Transaction Codes
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Chipotle Mexican Grill’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Crude Oil Dips Over 2%; Bloom Energy Shares Spike Higher
U.S. stocks traded lower toward the end of trading, with the Dow Jones index falling by more than 300 points on Friday.
The Dow traded down 0.78% to 43,410.32 while the NASDAQ fell 2.50% to 18,630.37. The S&P 500 also fell, dropping, 1.51% to 5,859.61.
Check This Out: Top 4 Utilities Stocks That May Keep You Up At Night This Quarter
Leading and Lagging Sectors
Utilities shares rose by 1% on Friday.
In trading on Friday, information technology shares fell by 2.7%.
Top Headline
The total number of active U.S. oil rigs fell by one to 478 rigs this week, Baker Hughes Inc reported.
Equities Trading UP
- The Arena Group Holdings, Inc. AREN shares shot up 181% to $1.63 after it announced its first ever profitable quarter.
- Shares of Bloom Energy Corporation BE got a boost, surging 55% to $20.59 after the energy company became the latest to announce a major deal to power AI data centers. Bloom Energy announced Thursday evening that it has signed a supply agreement with American Electric Power Company, Inc. AEP for up to 1 gigawatt (GW) of its products, the largest commercial procurement of fuel cells in the world to date.
- Simpple Ltd. SPPL shares were also up, gaining 46% to $1.29 after the company announced a $400,000 contract to supply autonomous cleaning robots at Singapore’s International Airport Terminal.
Equities Trading DOWN
- TFF Pharmaceuticals, Inc. TFFP shares dropped 77% to $0.37 after the company announced it will wind down its operations.
- Shares of Eyenovia, Inc. EYEN were down 70% to $0.10 after the company announced that its CHAPERONE trial is not meeting its primary endpoint, prompting the discontinuation of the study and a review of the full data set to evaluate next steps for the program.
- Ryvyl Inc. RVYL was down, falling 26% to $1.26 after the company reported worse-than-expected third-quarter financial results and cut its FY24 sales guidance.
Commodities
In commodity news, oil traded down 2.2% to $67.20 while gold traded down 0.1% at $2,572.20.
Silver traded down 0.5% to $30.425 on Friday, while copper fell 0.5% to $4.0690.
Euro zone
European shares closed mostly lower today. The eurozone’s STOXX 600 fell 0.77%, Germany’s DAX fell 0.27% and France’s CAC 40 fell 0.58%. Spain’s IBEX 35 Index gained 0.97%, while London’s FTSE 100 fell 0.09%.
The annual inflation rate in Italy increased to 0.9% in October versus 0.7% in the prior month, while France’s annual inflation rate rose to 1.2% in October. The GDP in the UK grew by 1% year-over-year during the third quarter.
Asia Pacific Markets
Asian markets closed lower on Friday, with Japan’s Nikkei 225 gaining 0.28%, Hong Kong’s Hang Seng Index falling 0.05% and China’s Shanghai Composite Index dipping 1.45%.
Hong Kong’s economy expanded by 1.8% year-over-year in the third quarter compared to a 3.2% increase in the previous period. China’s retail sales rose by 4.8% year-over-year in October, while industrial production rose by 5.3% year-over-year in October.
Economics
- The NY Empire State Manufacturing Index surged to 31.2 in November versus -11.9 in the previous month and topping market estimates of -0.7.
- U.S. export prices increased by 0.8% in October, while import prices rose by 0.3% month-over-month in October.
- U.S. retail sales rose 0.4% month-over-month in October compared to a revised 0.8% increase in September, and toping market estimates of 0.3%.
- U.S. industrial production declined by 0.3% in October compared to a revised 0.5% declined in September.
- The total number of active U.S. oil rigs fell by one to 478 rigs this week, Baker Hughes Inc reported.
- U.S. business inventories rose 0.1% month-over-month in September compared to a 0.3% gain in August and versus market estimates of 0.2%.
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Nvidia to report Q3 earnings Wednesday as AI fever continues to power Wall Street
Nvidia (NVDA) will report its Q3 earnings after the bell next Wednesday, giving Wall Street its best and latest look into the strength of the AI trade.
The world’s largest publicly traded company by market cap, Nvidia’s stock price has continued to rocket higher throughout 2024, thanks to the explosive growth in AI across the tech landscape and beyond. Shares of Nvidia were up 189% year to date as of Friday, easily outpacing any of the company’s chip rivals. AMD (AMD), Nvidia’s closest competitor, has seen its stock price sink nearly 8% year to date, while Intel (INTC), which is contending with a difficult turnaround, has seen its stock plunge 51%.
Nvidia is expected to report Q3 earnings per share (EPS) of $0.74 on revenue of $33.2 billion, according to analysts’ estimates compiled by Bloomberg. That works out to an 83% year-over-year increase on both the top and bottom lines versus the same period last year when Nvidia saw EPS of $0.40 on revenue of $22.1 billion.
Nvidia’s Data Center segment, its largest business, is set to bring in $29 billion for the quarter. That’s a 100% increase versus the $14.5 billion the company reported in Q3 last year.
Gaming revenue is expected to top out at $3 billion, up 7% from last year when the segment brought in $2.8 billion.
Analysts are anticipating gross margins to hit 75%.
Investors will be on the lookout for not only whether Nvidia beats on the top and bottom lines for the quarter, but if it raises its outlook for Q4 as well. Analysts are expecting Nvidia to announce Q4 guidance of $37 billion in revenue in the coming quarter.
Even if it delivers a stellar report and outlook, shares could still fall following the earnings announcement. Nvidia topped expectations on the top and bottom lines and beat out anticipated guidance in Q2, but shares still fell 6% immediately after it announced its results.
That could have been a sign that some investors weren’t impressed with Nvidia’s performance compared to prior quarters, where it saw revenue growth of 200% and EPS growth of nearly 600%. Or it could simply come down to investors taking profits on their gains at the time.
Investors will also be on the lookout for any insights from CEO Jensen Huang about Nvidia’s next-generation Blackwell line of AI chips, which are used to both train and run AI applications. During the company’s last earnings call in August, Huang said Blackwell production will pick up in Q4, when he expects to see several billions of dollars of revenue from the chips.
At the time, Huang said demand for Blackwell was already outstripping supply, and he expects that to continue in the year ahead. What’s more, he said the company’s Hopper chip, the predecessor to the Blackwell line, is expected to continue selling well into the coming quarter.
Unpacking the Latest Options Trading Trends in Vertiv Hldgs
Deep-pocketed investors have adopted a bearish approach towards Vertiv Hldgs VRT, 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 VRT usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga’s options scanner highlighted 18 extraordinary options activities for Vertiv Hldgs. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 33% leaning bullish and 55% bearish. Among these notable options, 6 are puts, totaling $836,940, and 12 are calls, amounting to $727,867.
Expected Price Movements
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $70.0 to $160.0 for Vertiv Hldgs over the recent three months.
Volume & Open Interest Trends
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Vertiv Hldgs’s options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Vertiv Hldgs’s significant trades, within a strike price range of $70.0 to $160.0, over the past month.
Vertiv Hldgs Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VRT | PUT | SWEEP | BEARISH | 11/29/24 | $3.6 | $3.2 | $3.49 | $115.00 | $350.0K | 96 | 1.0K |
| VRT | PUT | SWEEP | BEARISH | 11/29/24 | $4.6 | $4.3 | $4.49 | $120.00 | $193.0K | 32 | 2.0K |
| VRT | PUT | TRADE | BULLISH | 12/20/24 | $8.2 | $8.1 | $8.1 | $120.00 | $185.4K | 605 | 295 |
| VRT | CALL | SWEEP | BEARISH | 11/15/24 | $2.05 | $2.0 | $2.0 | $120.00 | $100.0K | 5.3K | 547 |
| VRT | CALL | TRADE | BULLISH | 01/17/25 | $4.9 | $4.7 | $4.85 | $140.00 | $96.9K | 2.4K | 215 |
About Vertiv Hldgs
Vertiv Holdings Co brings together hardware, software, analytics and ongoing services to ensure its customers vital applications run continuously, perform optimally and grow with their business needs. The company solves the important challenges faced by data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Its services include critical power, thermal management, racks and enclosures, monitoring and management, and other services. Its three business segments include the Americas, Asia Pacific; and Europe, Middle East & Africa.
Current Position of Vertiv Hldgs
- Currently trading with a volume of 3,912,933, the VRT’s price is down by -0.88%, now at $119.96.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 96 days.
Expert Opinions on Vertiv Hldgs
In the last month, 5 experts released ratings on this stock with an average target price of $129.8.
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* An analyst from Evercore ISI Group persists with their Outperform rating on Vertiv Hldgs, maintaining a target price of $135.
* Maintaining their stance, an analyst from TD Cowen continues to hold a Buy rating for Vertiv Hldgs, targeting a price of $115.
* An analyst from UBS has revised its rating downward to Buy, adjusting the price target to $155.
* Consistent in their evaluation, an analyst from Mizuho keeps a Outperform rating on Vertiv Hldgs with a target price of $110.
* An analyst from Citigroup has decided to maintain their Buy rating on Vertiv Hldgs, which currently sits at a price target of $134.
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 Vertiv Hldgs options trades with real-time alerts from Benzinga Pro.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Board Member Of Timken Sold $2.46M In Stock
Disclosed on November 14, Richard G Kyle, Board Member at Timken TKR, executed a substantial insider sell as per the latest SEC filing.
What Happened: Kyle’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 32,764 shares of Timken. The total transaction value is $2,459,921.
Monitoring the market, Timken‘s shares down by 0.09% at $74.89 during Friday’s morning.
Discovering Timken: A Closer Look
The Timken Company is a manufacturer of bearings, gear belts, industrial motion products and chain-related products. The company sells its portfolio of bearings, including tapered, spherical and cylindrical roller bearings, and thrust and ball bearings, through a network of authorized dealers to end users or directly to original equipment manufacturers. End-market sectors include general industrial, automotive, rail, energy, heavy truck, defense, agriculture, metals, mining, civil aerospace, construction, pulp and paper, and cement industries. Its segments are Engineered Bearings and Industrial Motion. Timken generates majority of its revenue in the United States of America.
Breaking Down Timken’s Financial Performance
Revenue Growth: Timken’s revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -1.39%. This indicates a decrease in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Profitability Metrics: Unlocking Value
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Gross Margin: The company faces challenges with a low gross margin of 30.56%, suggesting potential difficulties in cost control and profitability compared to its peers.
-
Earnings per Share (EPS): Timken’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.17.
Debt Management: Timken’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.8, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Valuation Analysis:
-
Price to Earnings (P/E) Ratio: The P/E ratio of 15.55 is lower than the industry average, implying a discounted valuation for Timken’s stock.
-
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.16, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.87, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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Why Insider Transactions Are Key in Investment Decisions
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
A Closer Look at Important Transaction Codes
When it comes to 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 indicates 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 Timken’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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tapestry Poised For Solid Growth After Capri Merger Termination, Analysts Cite Struggles And Missteps At Capri
On Thursday, Tapestry, Inc. TPR announced the termination of its merger agreement with Capri Holdings Limited CPRI, citing uncertainty in the legal process.
Following the termination of the merger agreement, Tapestry said it will redeem $6.1 billion in senior notes tied to the acquisition, paying 101% of their principal amount plus accrued interest, as per the Special Mandatory Redemption clause. Tapestry will also reimburse Capri $45 million for transaction-related expenses.
Here are the analysts’ takes on the termination news:
Telsey Advisory Group: Analyst Dana Telsey maintained the Market Perform rating on Capri Holdings, lowering the price forecast to $23 from $26. Considering the string of disappointing results over the past several quarters, the analyst trimmed the price forecast.
Per the analyst, the company saw some initial successes, but the campaigns didn’t connect well with its core customers. It raised price points too quickly. Additionally, the brand reduced its signature products and introduced too much fashion, leading to deeper promotions to drive sales.
However, for Tapestry, the analyst raised the price forecast to $67 from $58, with an Outperform rating. Telsey is optimistic about earnings growth from the new buyback authorization and the company’s strong balance sheet.
The analyst sees no near-term acquisitions while focusing on improving Kate’s performance.
Meanwhile, the Coach brand remains resilient, with a 2% increase in constant currency last quarter, the analyst writes.
Guggenheim: Analyst Robert Drbul maintained a Neutral rating on Capri Holdings, citing the company’s deteriorating results over the past few years. The analyst pointed out “multiple missteps” by the company, including focus on younger consumers, rapid price increases, and reduced promotions.
Drbul also criticized the reduction of signature styles and overemphasis on “fashion” at Michael Kors. At Versace, the shift toward luxury/quality alienated the aspirational consumer by removing statement items. The analyst lowered FY25/FY26 EPS estimates to $1.50/$2.00, down from $1.85/$2.10. Per Drbul, Capri’s current low valuation could attract offers.
Drbul reiterated the Buy rating on Tapestry, raising the price forecast to $70 from $60. The analyst notes Tapestry will focus on strengthening Coach and Kate Spade, not pursuing acquisitions for now. With the Capri merger behind, Drbul sees value in Tapestry’s current portfolio.
The company is expected to benefit from pricing power in FY25 and may reach a 19% operating margin, with long-term potential to return to pre-COVID margins, driven by DTC growth and expansion in Asia, Drbul writes.
JP Morgan: Analyst Matthew R. Boss reiterated the Neutral rating on Capri Holdings, with a price forecast of $15. The analyst projects FY25 EPS of $1.44, 17% below consensus, with a 14% year over year revenue decline and a 45bps gross margin contraction.
For the second half of 2025, the analyst projects revenues to be down 13% (an improvement from the first half’s -15%), gross margins to decrease by 10bps year over year (compared to the first half’s -80bps).
Capri Holdings’ shift to a higher direct-to-consumer sales mix has boosted full-price selling, but also increased operating expenses, Boss writes. The analyst warns that with limited opportunities to cut SG&A costs, this could be challenging amid a slowing top-line growth.
Price Action: CPRI shares are trading higher by 1.80% to $20.89 at last check Friday, while TPR shares are trading lower by 0.98% to $57.26.
Image via Unsplash
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Avicanna Reduces Net Loss And Improves Gross Profit, Focusing On International Markets
Avicanna Inc. AVCNF announced its financial results Thursday for the third quarter, disclosing revenue of CA$6.27 million ($4.49 million), compared to CA$6.25 million in the same period last year. The Toronto-based cannabis company also reported improved consolidated gross margin to 57% from 46% for the same period in 2023.
“We are pleased to report the results of another quarter showing progressive improvements across our four business pillars,” stated CEO Aras Azadian. “Our continuous optimization efforts contributed to improvements in our overall financial performance, consolidated gross margins, and balance sheet. We are now better positioned to turn our attention towards our international growth initiatives and take further steps towards advancing our long-term business model.”
Read Also: Agrify’s Q3 Revenue Drop, $18.6M Loss Amid New Leadership
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Q3 Financial Highlights
- Gross profit was CA$3.7 million compared to CA$2.9 million in the comparable quarter last year.
- Adjusted EBITDA was a loss of CA$293,931 compared to adjusted EBITDA loss of $473,650 in the corresponding period last year.
- Net loss amounted to CA$786,388 compared to net loss of CA$1.42 million in the third quarter of 2023.
- Fully repaid outstanding principle balance of approximately CA$1.3 million owed under non-convertible debenture.
Recent Milestones
In August, the biopharmaceutical company announced the successful export of its Aureus-branded cannabigerol (CBG) products to Denmark. This marked the 19th international market for Aureus-branded products and the 22nd market overall for Avicanna’s product range. The export was facilitated through Avicanna’s majority-owned subsidiary, Santa Marta Golden Hemp SAS.
The same month, Avicanna closed a non-brokered private placement offering of its 6,620,692 units at $0.30 per unit for aggregate gross proceeds of $1,986,207.
This year also, the company confirmed that the United States Patent and Trademark Office (USPTO) has issued U.S. Patent No. US 20230025693A1, covering the company’s deep penetrating topical cannabinoid composition and methods for treating musculoskeletal inflammation and pain.
Price Action
Avicanna shares closed Thursday’s market session flat at 17 cents a share.
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Photo: Courtesy of Avicanna
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Spotlight on Charter Communications: Analyzing the Surge in Options Activity
High-rolling investors have positioned themselves bullish on Charter Communications CHTR, and it’s important for retail traders to take note.
This activity came to our attention today through Benzinga’s tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in CHTR often signals that someone has privileged information.
Today, Benzinga’s options scanner spotted 14 options trades for Charter Communications. This is not a typical pattern.
The sentiment among these major traders is split, with 35% bullish and 7% bearish. Among all the options we identified, there was one put, amounting to $36,400, and 13 calls, totaling $389,626.
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 $130.0 and $400.0 for Charter Communications, spanning the last three months.
Insights into Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Charter Communications’s options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Charter Communications’s substantial trades, within a strike price spectrum from $130.0 to $400.0 over the preceding 30 days.
Charter Communications 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CHTR | CALL | TRADE | BEARISH | 01/15/27 | $152.6 | $151.3 | $151.3 | $300.00 | $75.6K | 722 | 12 |
| CHTR | PUT | TRADE | BULLISH | 01/15/27 | $75.0 | $72.8 | $72.8 | $400.00 | $36.4K | 918 | 12 |
| CHTR | CALL | TRADE | NEUTRAL | 01/17/25 | $265.8 | $257.7 | $262.21 | $130.00 | $26.2K | 0 | 13 |
| CHTR | CALL | TRADE | BULLISH | 01/17/25 | $264.8 | $257.6 | $262.21 | $130.00 | $26.2K | 0 | 10 |
| CHTR | CALL | TRADE | BULLISH | 01/17/25 | $262.5 | $257.7 | $262.15 | $130.00 | $26.2K | 0 | 18 |
About Charter Communications
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 58 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 29 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.
In light of the recent options history for Charter Communications, it’s now appropriate to focus on the company itself. We aim to explore its current performance.
Charter Communications’s Current Market Status
- With a volume of 452,368, the price of CHTR is down -0.95% at $390.52.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 77 days.
Professional Analyst Ratings for Charter Communications
5 market experts have recently issued ratings for this stock, with a consensus target price of $386.0.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge’s Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access.
* Maintaining their stance, an analyst from JP Morgan continues to hold a Neutral rating for Charter Communications, targeting a price of $400.
* Consistent in their evaluation, an analyst from Barclays keeps a Underweight rating on Charter Communications with a target price of $315.
* An analyst from Wells Fargo persists with their Equal-Weight rating on Charter Communications, maintaining a target price of $400.
* Showing optimism, an analyst from B of A Securities upgrades its rating to Buy with a revised price target of $450.
* An analyst from Deutsche Bank persists with their Hold rating on Charter Communications, maintaining a target price of $365.
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 Charter Communications options trades with real-time alerts from Benzinga Pro.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cannabis Co. Grown Rogue Reports 7% Increase In Q3 Revenue, Focuses On New Jersey And Illinois Expansion
Grown Rogue International Inc. GRIN GRUSF reported its third quarter 2024 results on Thursday for the three months ended Sept. 30, 2024.
“This was another exciting quarter for Grown Rogue with solid financial metrics showing the continued execution by our team in competitive markets against a backdrop of modest price compression,” CEO Obie Strickler said. “We continue to see strong indoor production yields of craft-quality flower, retail buyer and consumer loyalty, and great initial reception and sell-through with our branded pre-rolls, including our newest brand Yeti.”
Q3 2024 Financial Highlights
The comparison period for 2023 is the three months ended Oct. 31, 2023, due to the fiscal year-end change from Oct. 31 to Dec. 31.
- Revenue totaled $7 million, up 7% compared to $6.5 million in the fourth quarter of 2023.
- Gross profit amounted to $3.9 million, a decrease from $4.4 million in Q4 2023, primarily due to lower margins in Oregon and pricing pressures.
- Adjusted EBITDA was positive at $2.1 million, unchanged from the previous quarter. Its margin was 30%, down 210 basis points from the fourth quarter of 2023.
- Operating cash flow was $1.21 million, down 24% from $1.5 million in the fourth quarter of 2023. The decrease was attributed to increased spending on the New Jersey market launch.
- Operating expenses increased by 35% to $2.95 million due to higher selling, general and administrative expenses.
- The net loss was $667,240, an improvement from the $2.01 million recorded in the same period last year.
- Cash and cash equivalents totaled $5.6 million, down from $6.8 million as of Dec. 31, 2023.
- Positive cash flow of $5.01 million for the quarter.
- Total assets grew to $41.3 million, up from $29.6 million at year-end 2023.
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Other Business Highlights
In New Jersey, Grown Rogue announced competition of the company’s first harvest in the state, with product drops expected in Dec. 2024. The company is optimistic about generating significant cash flow from this market.
It also announced the commencement of phase I operations in the Garden State, which includes roughly 8,000 square feet of flowering canopy that will produce 500-600 pounds of whole flower per month with sales anticipated in the fourth quarter of 2024.
In Illinois, phase II construction is progressing, with a target of 1,100 pounds of whole flower production per month once completed in mid-2025.
Subsequent to quarter-end, the company announced the termination of an advisory agreement with Vireo Growth Inc. VREOF.
Outlook
Grown Rogue said it will focus on its New Jersey and Illinois expansions as primary growth drivers for 2025.
Additionally, Phase II of the New Jersey operation is expected to be completed by mid-2025, with the Illinois project following later in the year.
GRUSF Price Action
Grown Rogue’s shares traded 2.94% higher at 7 cents per share after the market close on Thursday afternoon.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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