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It was revealed in a recent SEC filing that Peter Quigley, President and CEO at Kelly Services KELYA made a noteworthy insider purchase on October 16,.

What Happened: Quigley’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, involves purchasing 9,843 shares of Kelly Services. The total transaction value is $200,009.

Kelly Services shares are trading down 0.0% at $20.62 at the time of this writing on Thursday morning.

Discovering Kelly Services: A Closer Look

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into five business segments namely Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International. Other than OCG, each segment delivers talent through staffing services, permanent placement, or outcome-based services. OCG segment delivers talent solutions including managed service providers, payroll process outsourcing, recruitment process outsourcing, and talent advisory services. International also delivers RPO talent solutions within its local markets. The majority of revenue is derived from Professional & Industrial.

Kelly Services: Financial Performance Dissected

Decline in Revenue: Over the 3 months period, Kelly Services faced challenges, resulting in a decline of approximately -13.12% in revenue growth as of 30 June, 2024. This signifies a reduction in the company’s top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 20.21%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Kelly Services’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.13.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.21.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.62, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.17, 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): At 10.38, Kelly Services’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

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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The Impact of Insider Transactions on Investments

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking 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 Kelly Services’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.

Renowned analyst Ming-Chi Kuo has forecasted a potential pricing standoff in the semiconductor industry.

What Happened: On Thursday, Kuo an analyst at TF Securities took to X, formerly Twitter, and said that market rumors indicate ASML Holding ASML could hike equipment prices for Taiwan Semiconductor Manufacturing Company Co. Ltd. TSM.

However, Kuo anticipates that TSMC, the world’s largest contract chipmaker, and ASML’s biggest customer, will likely push back against these price increases.

See Also: Apple’s iPhone 16 Powers Record Sales In Q3, Just Behind Samsung In Global Market Share Battle

ASML is the sole manufacturer of high-end extreme ultraviolet lithography systems, which are essential for creating advanced chips.

TSMC relies on ASML’s EUV technology to manufacture cutting-edge semiconductors for various clients, including tech behemoths like Apple and Nvidia.

Kuo’s comments suggest that TSMC’s likely push for price reductions from ASML could lead to a pricing standoff between the two companies.

Why It Matters: This development comes after TSMC reported strong third-quarter results, beating estimates due to robust demand for advanced processor node technologies used in AI applications.

The company, which supplies chips to global corporations including Nvidia Corporation NVDA and Apple Inc. AAPL, guided fourth-quarter revenue sharply above the consensus.

Meanwhile, ASML reported third-quarter net sales of 7.5 billion euros ($8.16 billion), surpassing analyst expectations of 7.12 billion euros. However, the Dutch firm revised the upper limit of its full-year sales forecast,

Earlier in the year, TSMC had expressed concerns about the high costs of ASML’s new advanced chip machines.

At a technology symposium, TSMC senior vice president Kevin Zhang commented on the high price of the high-NA extreme ultraviolet system, which costs $380 million each.

Photo by Sundry Photography on Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Streaming giant Netflix Inc NFLX reported third-quarter financial results after market close Thursday.

Here are the key highlights.

What Happened: Netflix reported third-quarter revenue of $9.825 billion, up 15% year-over-year. The revenue total beat a Street consensus estimate of $9.769 billion according to data from Benzinga Pro.

The company reported earnings per share of $5.40 in the third quarter, beating a Street consensus estimate of $5.12.

Netflix ended the third quarter with 282.72 million global paid subscribers, up 14.4% year-over-year. The company added 5.07 million new paid subscribers in the quarter, compared to 8.8 million net paid subscribers added in last year’s third quarter.

The company said average revenue per member was flat on a year-over-year basis in the third quarter.

Revenue was up 16% year-over-year in the UCAN region. Revenue in the EMEA region was up 16% year-over-year. LATAM revenue was up 9% year-over-year.  

The company said engagement remained strong in the third quarter. Through the first nine months of the year, view hours per member are up year over year. Engagement averages around two hours per day per paid membership.

Netflix said ad-supported plan membership was up 35% quarter-over-quarter in the third quarter. The company’s ad-tech platform is “on track to launch” in the fourth quarter in Canada and other territories in 2025.

“Our ads plan allows us to offer a lower price point for consumers, which is proving to be popular,” the company said.

Netflix said the ad-supported plan represented over 50% of new sign-ups in the third quarter.

“Our members rely on Netflix to entertain them, and we want to be the first place they go for entertainment.”  

Read Also: Netflix Q3 Earnings Preview: Ad-Supported Plan, Price Hikes, And Content Slate Key Focus As Company ‘Adds More And More Live Content’

What’s Next: Netflix is guiding for fourth-quarter revenue to be $10.128 billion, up 14.7% year-over-year. The company’s earnings per share guidance calls for the fourth quarter total to be $4.23, compared to $2.11 in last year’s fourth quarter.

Netflix said the ad-supported plan efforts are still early and will take time to build out as a revenue stream.

“We’re on track to reach what we believe to be critical ad subscriber scale for advertisers in all of our ads countries in 2025, creating a strong base from which we can further increase our ad membership in 2026 and beyond,” the company said.

The company highlighted upcoming fourth-quarter content, including the boxing match between Jake Paul and Mike Tyson, a second season of “Squid Game”, and two National Football League games on Christmas.

“As we look ahead to 2025, we’re focused on improving every aspect of our service and continuing to deliver healthy revenue and profit growth.”

Due to seasonality and the strong content slate, fourth-quarter paid net additions are expected to be higher than the third-quarter total.

Netflix expects 2025 revenue to range from $43 billion to $44 billion.

NFLX Price Action: Netflix stock is up 4% to $715.37 in after-hours trading Thursday, versus a 52-week trading range of $344.73 to $736.00.

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Photo courtesy of Netflix.

TORONTO, Oct. 17, 2024 (GLOBE NEWSWIRE) — Nexus Industrial REIT (“Nexus” or the “REIT”) NXR announced today that it intends to release its financial results for the quarter ended September 30, 2024, before the opening of the TSX on November 12, 2024.

Management of the REIT will host a conference call at 10:00 AM Eastern Standard Time on Tuesday November 12, 2024, to review the financial results and operations.

To participate in the conference call, please dial 647-484-8814 or 1-844-763-8274 (toll free in Canada and the US) at least five minutes prior to the start time and ask to join the Nexus Industrial REIT conference call.

A recording of the conference call will be available until December 12, 2024. To access the recording, please dial 1-412-317-0088 or 1-855-669-9658 (toll free in Canada and the US) and enter access code 7467865.

November and December Distributions

The REIT will make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable December 13, 2024, to unitholders of record as of November 29, 2024.

The REIT will also make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable January 15, 2025, to unitholders of record as of December 31, 2024.

About Nexus Industrial REIT

Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 111 properties (including one properties held for development in which the REIT has an 80% interest) comprising approximately 13.0 million square feet of gross leasable area. The REIT has approximately 94,159,000 voting units issued and outstanding, including approximately 70,749,000 REIT Units and approximately 23,410,000 Class B LP Units of subsidiary limited partnerships of Nexus, which are convertible to REIT Units on a one-to-one basis.

For further information please contact:

Kelly C. Hanczyk, CEO at (416) 906-2379; or
Mike Rawle, CFO at (647) 823-1381.

Another billionaire investor is rooting for Republican presidential candidate Donald Trump’s victory in the Nov. 5 election and has accordingly positioned his portfolio. The call comes on the heels of former hedge fund manager Stanley Druckenmiller‘s similar prediction.

What’s In Store In Political Arena: “We believe that the likelihood of a Republican victory in the White House has increased, which would have a positive impact on certain sectors and the market overall,” said hedge fund Third Point founder and CEO Daniel Loeb said in the firm’s third-quarter investor letter.

The hedge fund manager said the “America First” tariffs will increase domestic manufacturing, infrastructure spending, and prices of certain materials and commodities. He also said a potential reduction in regulation in the activist antitrust stance of the Biden-Harris administration would unleash productivity and a wave of corporate activity.

“Accordingly, we have increased certain positions that could benefit from such a scenario via both stock and option purchases and continue to shift our portfolio away from companies that will not,” the hedge fund manager said. A study of Senate races will likely see Republicans establishing a majority, thus precluding a “Blue Sweep” if Kamala Harris wins the race to the White House, according to the hedge-fund manager.

He warned of a “Blue sweep” theoretically ushering in crushing taxes, stifling regulations, and a headwind to
growth.

See Also: What Are Cyclical Stocks

Economic Outlook: Loeb reassured investors regarding the economy. “In the economy, we see no evidence of recession, slowing inflation, and a real interest rate that still needs to come down,” he said.

The hedge fund manager also sees healthy consumer spending, and active levels of individual investing, providing a liquidity backdrop to sustain market levels. The setup is good for event-driven investing, he said, adding that “the potential for risk arbitrage transactions and corporate activity could usher in a golden age for the strategy.”

Third Point’s Q3 Winners & Losers: Third Point Offshore Fund generated a return of 3.9%, taking the annualized net returns to 13.1%. The third-quarter returns of the fund, however, paled before the S&P 500’s 5.9% gain and the MSCI World Index’s 6.5% rise.

Loeb noted that the global market gains continued in the third quarter but the rally broadened out in the quarter, with the Magnificent 7 trailing the broader market for the first time since the fourth quarter of 2022. Rate-sensitive stocks and cyclicals outperformed as the market looked ahead to the easing cycle, he added.

The top gainers and decliners of the fund are as follows:

Gainers

• Privately-held R2 Semiconductor
• PG&E Corporation’s PCG Pacific Gas and Electric Company subsidiary
• Utility Vistra Corp. VST
• KB Home KBH
• Lifesciences and diagnostics company Danaher Corporation DHR

Losers:

• Bath & Body Works, Inc. BBWI
• Amazon.com, Inc. AMZN
• Advance Auto Parts, Inc. AAP
• Alphabet Inc. GOOG GOOGL
• Microsoft Corporation MSFT

Loeb also said his fund initiated a position in Danish freight forwarder DSV. “We believe DSV can earn more than 100 DKK per share in 2027 and see significant upside for one of Europe’s best companies,” he said.

The SPDR S&P 500 ETF Trust SPY, an exchange-traded fund that tracks the performance of the S&P 500 Index, traded up 0.25% to $583.78 in premarket trading on Friday, according to Benzinga Pro data.

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