Tag: investors

With 61% ownership in B&M European Value Retail S.A. (LON:BME), institutional investors have a lot riding on the business

Key Insights

  • Institutions’ substantial holdings in B&M European Value Retail implies that they have significant influence over the company’s share price

  • A total of 10 investors have a majority stake in the company with 51% ownership

  • Recent purchases by insiders

A look at the shareholders of B&M European Value Retail S.A. (LON:BME) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 61% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And things are looking up for institutional investors after the company gained UK£201m in market cap last week. The one-year return on investment is currently 30% and last week’s gain would have been more than welcomed.

In the chart below, we zoom in on the different ownership groups of B&M European Value Retail.

Check out our latest analysis for B&M European Value Retail

ownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About B&M European Value Retail?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in B&M European Value Retail. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of B&M European Value Retail, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth

earnings-and-revenue-growth

Read More ...

Should Value Investors Buy First Business Financial Services (FBIZ) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is First Business Financial Services (FBIZ). FBIZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.25, while its industry has an average P/E of 10.92. Over the past year, FBIZ’s Forward P/E has been as high as 9.25 and as low as 5.93, with a median of 7.24.

We should also highlight that FBIZ has a P/B ratio of 1.24. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks solid versus its industry’s average P/B of 1.93. Within the past 52 weeks, FBIZ’s P/B has been as high as 1.28 and as low as 0.82, with a median of 1.02.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock’s price with the company’s revenue.

Read More ...

WeWork stock plunges after warning investors about its future

WeWork raised “substantial doubt” about its future existence on Tuesday, adding another twist to a dizzying journey that has marked the company’s staggering rise, fall, rebirth, and potential imminent collapse.

The co-working space provider warned investors that, facing losses and fleeing clients, “substantial doubt exists about the Company’s ability to continue as a going concern,” according to its second quarter earnings report. Management laid out plans to improve liquidity and profitability over the next year. But Wall Street recoiled.

WeWork stock (WE) plunged nearly 40% following the announcement.

A WeWork logo displayed on the front of a building in the city.

WeWork warned investors in a new financial filing that it has doubts the company can continue doing business. (STRF/STAR MAX/IPx/ AP Photo)

The grave warning punctuates WeWork’s disastrous run as a public company. Its shares have lost roughly 90% of their value this year, beating down its market cap to $105.5 million as of Wednesday afternoon. WeWork once had a valuation of $47 billion.

The overwhelming losses echo WeWork’s earlier run as a startup. Once valued as one of the most promising enterprises in the tech world, the company’s worth evaporated as it prepared to go public in 2019. As potential investors took a closer look at the company’s financial documents, they raised concerns over its money-losing model. Its curious dealings with co-founder and then-CEO Adam Neumann, also raised alarms, including a widely criticized arrangement that had WeWork pay Neumann $5.9 million for use of the word “We” in its name.

Neumann, seen as an eccentric salesmen, touted his lofty ambitions for the company. While WeWork did business by securing long-term leases and then subletting office space to companies for the short-term, Neumann didn’t see his enterprise as a real estate firm. He pitched WeWork as a transformational technology company that would change the way people work and elevate the world’s consciousness.

Read More ...

Investors in First Business Financial Services (NASDAQ:FBIZ) have seen stellar returns of 151% over the past three years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For example, the First Business Financial Services, Inc. (NASDAQ:FBIZ) share price has soared 131% in the last three years. How nice for those who held the stock! Also pleasing for shareholders was the 19% gain in the last three months. But this could be related to the strong market, which is up 10.0% in the last three months.

So let’s investigate and see if the longer term performance of the company has been in line with the underlying business’ progress.

Check out our latest analysis for First Business Financial Services

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

First Business Financial Services was able to grow its EPS at 25% per year over three years, sending the share price higher. In comparison, the 32% per year gain in the share price outpaces the EPS growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. That’s not necessarily surprising considering the three-year track record of earnings growth.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth

earnings-per-share-growth

It’s probably worth noting we’ve seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important

Read More ...

Is It a Marketing Agency? Is It an Advertising Giant? It’s Shiba Memu! What Investors Need To Know About This New Crypto

  • In recent years, the meme coin market has seen a massive surge in value and market capitalization, with the market value rising from $0 back in 2020 to a whopping $20 billion in 2022.
  • Many crypto enthusiasts and eager investors are waiting for the next big meme token. 

Well, the meme market is about to take an even more significant leap forward with the release of Shiba Memu, an AI-powered game-changer with genuine utility that actually markets itself.

Blending elements of state of the art AI, blockchain technology, and marketing agency strategies, Shiba Memu is about to disrupt the crypto world like never before. Experts are already heralding this new crypto as a major breakthrough that could change how people view meme coins for years to come. But what exactly is Shiba Memu?

What Is Shiba Memu?

At first glance, Shiba Memu may look like so many other meme cryptos of the past. It has an amusing robot Shiba Inu mascot, taking inspiration from other popular meme coins, like Dogecoin and Shiba Inu. However, when you look a little closer, you see how bold, innovative, and daring this new crypto is.

While many meme coins have little utility, relying on word-of-mouth and online hype to go viral and gain value, Shiba Memu offers something different: it markets itselff. This new coin is backed by cutting-edge AI technology, allowing it to mimic the work of dozens of marketing agencies.

In simple terms, Shiba Memu can learn the art of marketing. It’s designed to pick up marketing and promotional strategies used by the best in the business and emulate them to promote itself. What’s more, as time goes by, this new crypto will grow and evolve, finetuning its strategies and perfecting its approach to become even more effective and valuable.

That means

Read More ...

China-linked businesses and investors seek comeback in India

China-linked tech companies are finding ways to break back into India, giving fresh hope to investors that their businesses can overcome trade tensions between the countries and power new growth.

Online fashion company Shein has pursued an alternative deal structure to relaunch in India in partnership with Reliance Industries, the country’s biggest listed company. It had been among dozens of Chinese apps banned in 2020 over alleged national security concerns following deadly clashes on India’s border with China.

Battlegrounds Mobile India, a shooter game published by the Tencent-backed South Korean company Krafton, relaunched on app stores last week, a year after it was banned allegedly over fears that Indian user data was being transferred to servers in China.

Without naming China, Indian minister Rajeev Chandrasekhar said last month that BGMI would be available for a three-month trial after addressing concerns over “server locations [and] data security”.

Shein’s partnership with Reliance — recently approved by the government — is a licensing agreement where the Chinese group will receive a percentage of Reliance’s profits from sales of its clothing rather than invest directly in India.

“This could well be an inflection point for future such structures to be adopted,” said Karam Daulet-Singh, managing partner of foreign investment-focused law firm Touchstone Partners.

“You need someone of Reliance’s stature and position in the Indian ecosystem in order to be able to do something so high profile, and not try and keep it below the radar.”

Shein last year also made its Singapore arm its de facto holding company, a strategy known as “Singapore washing” that is being deployed by Chinese investors looking to take corporate stakes in countries that are sensitive to mainland investment.

BGMI’s return could prove significant to a gaming sector hit by a series of abrupt bans on popular

Read More ...

Positive week for First Business Financial Services, Inc. (NASDAQ:FBIZ) institutional investors who lost 5.2% over the past year

Key Insights

  • Significantly high institutional ownership implies First Business Financial Services’ stock price is sensitive to their trading actions
  • 50% of the business is held by the top 16 shareholders
  • Insiders have been buying lately

Every investor in First Business Financial Services, Inc. (NASDAQ:FBIZ) should be aware of the most powerful shareholder groups. With 61% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would probably welcome last week’s 16% increase in share prices after a year of 5.2% losses as a sign that returns are likely to begin trending higher.

In the chart below, we zoom in on the different ownership groups of First Business Financial Services.

Check out our latest analysis for First Business Financial Services

ownership-breakdown
NasdaqGS:FBIZ Ownership Breakdown June 8th 2023

What Does The Institutional Ownership Tell Us About First Business Financial Services?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that First Business Financial Services does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of First Business Financial Services, (below). Of course, keep in mind that

Read More ...