As you may know, Very first Economical Bancorp. (NASDAQ:FFBC) a short while ago reported its very first-quarter numbers. Revenues of US$149m were being in line with forecasts, despite the fact that statutory earnings for every share (EPS) arrived in down below expectations at US$.44, missing estimates by 2.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The analysts usually update their forecasts at every earnings report, and we can decide from their estimates irrespective of whether their watch of the business has transformed or if there are any new fears to be aware of. We thought viewers would find it appealing to see the analysts latest (statutory) publish-earnings forecasts for future yr.
Subsequent previous week’s earnings report, 1st Financial Bancorp’s six analysts are forecasting 2022 revenues to be US$638.3m, roughly in line with the very last 12 months. Statutory per share are forecast to be US$2.10, close to in line with the previous 12 months. But prior to the most up-to-date earnings, the analysts experienced been anticipated revenues of US$638.3m and earnings for every share (EPS) of US$1.95 in 2022. The analysts appears to have develop into more bullish on the enterprise, judging by their new earnings for each share estimates.
The consensus cost target was unchanged at US$26.10, implying that the improved earnings outlook is not envisioned to have a prolonged term affect on worth creation for shareholders. It could also be instructive to appear at the variety of analyst estimates, to consider how various the outlier viewpoints are from the necessarily mean. There are some variant perceptions on To start with Money Bancorp, with the most bullish analyst valuing it at US$28.00 and the most bearish at US$26.00 for every share. With this sort of a slim selection of valuations, the analysts evidently share very similar sights on what they assume the business enterprise is truly worth.
A person way to get a lot more context on these forecasts is to search at how they examine to both of those previous general performance, and how other corporations in the exact field are undertaking. We would highlight that Initial Monetary Bancorp’s income expansion is anticipated to gradual, with the forecast 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualised advancement amount right up until the end of 2022 getting effectively beneath the historical 13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} p.a. development above the previous five years. Look at this in opposition to other corporations (with analyst forecasts) in the marketplace, which are in aggregate anticipated to see profits progress of 7.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} each year. Factoring in the forecast slowdown in development, it would seem obvious that Initial Economic Bancorp is also predicted to expand slower than other field participants.
The Bottom Line
The most important takeaway for us is the consensus earnings for each share upgrade, which indicates a very clear enhancement in sentiment close to Initial Money Bancorp’s earnings opportunity future calendar year. On the moreover aspect, there had been no main variations to earnings estimates despite the fact that forecasts imply revenues will accomplish worse than the broader field. The consensus value goal held constant at US$26.10, with the latest estimates not enough to have an impression on their rate targets.
With that in thoughts, we would not be too speedy to occur to a summary on Initial Economical Bancorp. Extended-term earnings energy is considerably additional significant than future year’s earnings. At Just Wall St, we have a complete vary of analyst estimates for First Money Bancorp going out to 2023, and you can see them free of charge on our system right here..
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Three of the grandest names in white-shoe wealth have recently opened their digital doors to the averagely affluent:
• In February 2021, Goldman Sachs Group Inc. expanded its personal loan platform Marcus by launching Marcus Invest, “an automated investing platform with managed portfolios of affiliated and unaffiliated ETFs.”
• In June 2021, JPMorgan Chase & Co. spent a rumored 700 million pounds ($899 million) to buy Nutmeg, “one of the most successful digital challengers in the British wealth management market.”
• In January 2022, UBS Group AG found $1.4 billion in cash to acquire Wealthfront, “an industry-leading, automated wealth management provider serving the next generation of investors.”
Although each of these brands(1) has its own wealth-management pitch, all are essentially retail “robo-advisors” — digital platforms providing automated investments, premised upon semi-bespoke onboarding (risk profile, personal goals, time horizons), offering fees that reflect that absence of human interaction and requiring low opening balances.
To open an account with Goldman Sachs Private Wealth Management you need at least $10 million in investable assets; Marcus Invest requires $1,000.
So why are these blue-chip bankers — who for generations have fixated on the 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} — stooping to conquer customers with just 0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of this wealth?
Various interlocking forces are at work:
TAM of AUM · According to Backend Benchmarking, assets under management (AUM) in the robo-advice market rose from $631 billion in 2019, to $785 billion in 2020. And so, as the total addressable market (TAM) expands, traditional wealth managers are looking enviously at the AUMs of robo-pioneers and FinTech disruptors like Betterment, Fidelity, Schwab, SigFig and Vanguard — to say nothing of blockbuster gambling trading apps like Robinhood, whose 17.3 million monthly active users, as of December 2021, had an AUM of $98 billion.
Simplicity · Whereas high-net-worth clients tend to employ elaborate financial structures across multiple jurisdictions, and rich retirees must juggle pensions, annuities, dividends and estate planning, the above-average working Joe/Joanna simply wants to get in on the market without getting burned. For such modest aspirations, “robo-advice” is not merely better suited to the task but, given its fees, preferable to the client.
Cross-pollination · Once mainstream consumers have signed up to wealth management, how much easier is it to sell them retail banking, loans, mortgages, insurance, e-trading and, who knows, crypto?
Capability · By investing in the high-tech and human capital required for robo-advice, traditional banks simultaneously become better equipped to serve modern billionaires who also prefer digital dashboards and cellphone apps to stuffy, oak-paneled offices.
#401OKBoomer · Anyone who still thinks Gen Z, Millennials and Generation X have nothing to offer but personal debt and avocado toast should remember the actuarial gravity of an ageing population. As each day passes, more members of Gens X–Z are reaping the fiscal harvest sowed by the richest-ever generation who, born between 1946 and 1964, are now 58 to 76 years old. According to Morgan Stanley, this represents “the largest intergenerational wealth transfer in history, with $30 trillion set to change hands over the next few decades.” As the diner sign used to say: “A milkshake customer today is a steak customer tomorrow.”
All of which poses a puzzle: If wealth management is not just for the wealthy, how best to brand the product?
For many steeped in the traditions of wealth management, WealthTech is an oxymoron: One can either have “high touch” or the common touch. Yet such hidebound thinking increasingly jars with our disrupted, democratic and Direct-To-Consumer present, where digital natives have neither the time nor the personality to schmooze with pinstriped advisors inherited from their (grand)parents, or tipped by a friend.
In this new informality, where word of mouth competes with click of mouse, brands as grand as Goldman Sachs are a double-edged sword: On the one hand, they confer history, stability and deep wells of experience; on the other, they connote expense, exclusivity and consumer intimidation.
Inevitably, the Germans have a word for this: Schwellenangst, which translates literally as “threshold anxiety” and is used metaphorically in the arts sector to describe the apprehension that discourages neophytes from even trying “highbrow” culture like classical music, opera and ballet.
Such Schwellenangst places brass-plaqued bankers in a bind: Do they stick with their legacy branding? Do they create their own indie FinTech knock-off brand? Or do they attempt some form of hybrid diffusion?
Hybridity is the approach taken by JPMorgan and Goldman Sachs, whose offspring cling closely to their parents. (Marcus was named after its bank’s founder, Marcus Goldman, 1821–1904.) It’s notable that the logos for Nutmeg and Marcus don’t just reflect the established typography, they include tethering taglines — though there is an interesting difference in tone between the corporate “a JPMorgan company” and the collaborative “by Goldman Sachs.”
Similarly, their websites reflect only a cautious departure from formality …
… especially when compared to Nutmeg’s pre-acquisition look and feel:
By contrast, Wealthfront (currently) makes little play of its UBS ownership, showcasing instead the echt-bland meet-cute origin story of “when Andy called Dan” and “realized they not only shared a mission — to help democratize access to sophisticated financial advice — they agreed that software could unlock great investing for everyone.”
When it comes to tone of voice, however, all three brands exercise a little more freedom: Looking related is one thing, sounding the same is another. Compare the (boldfaced) pitch of Goldman’s Private Wealth Management …
“It is a privilege to advise the world’s most influential people and institutions. Goldman Sachs’ deeply personal approach goes beyond wealth and investment management — it is a lifelong partnership for growth. Join us for access to expertise, opportunity and each other.”
… to the cakeist approach of Wealthfront:
“If you try to do things yourself, you’re never sure if you’re making the right decisions. If you use advisors, you’re never sure whether they’re making the best decisions for you … or for themselves. Wealthfront levels the playing field. Because everyone deserves an equal chance to succeed.”
That said, the disarming frankness of Nutmeg …
“Investing can be difficult. Just ask all those who have tried and failed to beat the market. Fortunately, we have the people, the technology and the portfolios to help.”
… is nothing compared to its pre-acquisition attitude, which may have given JPMorgan a moment of pause:
Although we await how UBS might modify Wealthfront’s identity and messaging, curiously none of these robo-brands has yet been folded into its owner’s master brand. Might this be an error?
Uppermost in the anxiety of any premier brand seeking popular approval must be the declasséfication struggles of companies like Stella Artois, Patagonia and, most infamously, Burberry — whose trademark(ed) plaid came close to catastrophe in the 2000s when it was swamped by counterfeiters and a “chavalanche” of apparently undesirable working-class consumers.
To defend against such brand dilution (or even destruction), and discourage market cannibalization, personal luxury goods marketing has developed a range of strategies that monetize masstige while protecting the golden goose:
Diffusion Lines · Cheaper and often more gaudily-branded versions of “main line” designs (Marc by Marc Jacob; Miu Miu by Prada; Versus by Versace) intended to appeal to “day-trippers” without threatening the elite. Recently, secular (and sexualized) brands (Dior, Prada, H&M, Dolce & Gabbana, Uniqlo) have created religiously diffuse “modesty lines” and “Ramadan capsule collections” to similarly attract the orthodox — why leave money on the altar?
Affordable Extensions · Leather goods, accessories, eyewear, cosmetics and fragrances that grant hoi polloi an affordable touch / sniff of the real thing. The breakdown of LVMH’s 2021 revenue by business group was: 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} wines and spirits; 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} perfumes and cosmetics; 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} watches and jewelry; 19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} selective retailing and other activities; and 48{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} fashion and leather goods.
Poorthenticity · Internal “made-for-outlet” knock-offs, usually identifiable by cheaper materials, hidden label codes and hard-to-believe discounts.
Recently, luxury brands have rushed also to adopt:
Collaboration · Where limited edition (and limited risk) mash-ups and pop-ups create media buzz and consumer frenzy.
Resale · Where real “real-real” brands (including Gucci, Valentino and Jean Paul Gaultier) take back control of their “pre-loved stock” from vintage stores and online resellers. For example, Encore by Oscar de la Renta “invites you to shop decades of runway fashion, authenticated by our archivists and reconditioned by hand in our atelier.”
Ironically, wealth may be the only thing immune from declasséfication, for cash forms the irreducible core of status, to which “status symbols” are merely distractions or confirmations. It’s noteworthy that while Warren Buffett’s everyman diet of junk food and Coke is central to his popular mythology as the Sage of Omaha — distracting from his $128 billion net worth — the same menu choices by Donald Trump are derided as “weird” and “self-destructive,” thus confirming the opinion that he’s “populist, cheap and maybe too salty for most people’s taste.”
The decision by Goldman Sachs, JPMorgan and UBS to keep their robo-advisors at a distance from their master brands suggests that they are least cognizant of declasséfication — and the risk it poses to their credibility among the 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. But unless you’re Elon Musk, there is always someone above you on the ladder, and billions on the rungs below. And so instead of sticking with Marcus, Nutmeg and Wealthfront, might their owners haven taken a more bullish approach?
Hierarchy branding is premised on an acceptance of (or acquiescence to) inequality.
At the time of writing, British Airways offered return flights from London to New York for around £520 in economy, £970 in premium, £3,900 in business and £4,600 in first class. Few passengers “turning left” onto a plane feel guilty enough about those crammed into coach to swap seats (luxury is inevitably enhanced by its comparison to economy). Equally, few in the cheap seats have the financial means to fly up front, and those who do are presumably alive to the opportunity costs.
Although some research from 2016 suggests that “the increasing incidence of ‘air rage’ can be understood through the lens of inequality,” most consumers seem to “know their place,” as codified by the 1848 hymn, “All Things Bright and Beautiful”:
The rich man in his castle,The poor man at his gate,God made them, high or lowly,And ordered their estate.
It’s therefore no accident that airlines still use the word “class” to segregate flyers, or that “class” remains useful for mass-market luxury car brands:
These class divisions are distinct from other branding/price ladders, which nudge consumers gently up the specs or reflect divergent use-case profiles.
Unlike social class, which is defined at birth, marketing class is based solely on wealth and is, in consequence, fluid. (“An A-class customer today is an S-Class customer tomorrow.”) Such fluidity empowers hierarchy brands to deploy an all-encompassing message across the income chasm, without intimidating the less well-off or disenchanting even the ultra-rich.
Take the quintessential hierarchy brand American Express, which offers a range of color-coded card classes — Platinum ($695/year), Gold ($250/year), Green ($150/year), Blue ($0/year) — under the counterintuitively egalitarian banner: “Many kinds of cards. One kind of membership.”
Because wealth is (more or less) inconvertible, AmEx neither hides nor disguises its hierarchies. Indeed, its color-coded class system seems to suit everyone: The less affluent feel they are in the same club as the über-wealthy (branding’s “halo effect”), while the rich are either reassured by being primus inter pares, or as indifferent to Blue card holders as they are to passengers in coach.
So confident is American Express in its hierarchy branding, the company even toys with consumers by dangling the existence of an “invitation only” Centurion membership ($10,000 joining fee + $5,000 a year) while declining to comment on its perks or indeed if the “black card” was inspired by Jerry Seinfeld.
Perhaps it’s no surprise that Goldman Sachs, JPMorgan and UBS chose to go with funky, indie-approximate diffusion branding for their mid-market wealth-management bots. After all, the kids love a friendly name (Marcus!), an approachable font and an amiable block of sales copy — as we know from the unceasing wave of identikit blands flooding our Instagram feed.
But you can’t help feeling they’ve missed a trick.
True wealth management — as distinct from day-trade speculation and crypto hype — is premised on expertise, judgment and time. These are all attributes that legacy banks have in spades, and FinTech startups are working to acquire. Borrowing the branding of the latter to sell the services of the former seems like an odd choice. Not every brand gets to be a hierarchy brand, but those that can be probably should.
(1) Similarly, if less storied: Lloyds Banking Group acquired the investment platform Embark; Abrdn bought the AI-driven Exo Investing; Royal Bank of Canada proposed the acquisition of Brewin Dolphin wealth management; and Barclays partnered with Scalable Capital to develop the discretionary portfolio manager, Plan & Invest.
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
Ben Schott is Bloomberg Opinion’s advertising and brands columnist. He created the Schott’s Original Miscellany and Schott’s Almanac series, and writes for newspapers and magazines around the world.
Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. He previously worked for the Wall Street Journal and the Financial Times.
While China’s tech hub Shenzhen has emerged from its practically thirty day period-extended lockdown, China’s largest town, Shanghai, residence to the world’s largest container port, has remained shuttered because March 28.
Now, the economic effects are starting off to demonstrate. Fuel demand in China is on track to drop 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this thirty day period in the most significant drop given that the to start with wave of COVID-19 lockdowns more than two several years in the past, sources instructed Bloomberg on Friday. And worldwide offer chains are beginning to come to feel the crunch as effectively.
A offer chain nightmare
One particular in five container ships is now caught at ports globally, with 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the backlog coming from China. And Lars Jensen, the CEO of the transport container sector consulting agency Vespucci Maritime, advised Fortune that the whole impression of China’s procedures will only begin to reveal alone around the coming weeks.
“Until now most vessels have continue to been contacting Shanghai virtually as for each normal—this implies cargo to Shanghai does not end up in the completely wrong position,” Jensen claimed. “But this is likely to transform in the coming weeks if the lockdown is not taken out. Then you will see extra omissions of Shanghai as a port and canceled sailings, and the [supply chain] impact will enhance.”
Even if strict lockdowns in Shanghai are lifted, U.S. ports will possible be slammed with a wave of pent-up cargo from newly reopened factories in China. That will lead to bigger freight charges, Jensen says, and worsen congestion at ports globally.
Victor Meyer, COO of the hazard intelligence company Provide Wisdom, believes it will choose months for supply chains to return to normal, and he expects U.S. ports could get started encountering disruptions soon.
“The following impact will possible be felt in the U.S. West Coast’s ports of Los Angeles and Lengthy Beach front as the pent-up demand from customers reaches them,” he explained.
Another inflationary shock
Difficulties at ports signify climbing expenses for companies and rising inflation for U.S. shoppers, gurus say.
“Companies are starting to worry. The downstream influence is coming, and it’ll be weighty.” John Bree, the main chance officer at Provide Knowledge, claimed. “The latest China lockdowns mixed with the Russia-Ukraine war is also large a load. The worldwide chaos is going to more exacerbate disruption and just take inflation to a new degree.”
Bree’s statement is backed up by modern stories from expenditure banks, which are also warning of the financial impacts of China’s lockdowns. Financial institution of America analysts led by Ethan Harris stated in a observe to purchasers on Friday that it’s however “another adverse source shock for the global economy” that will weaken development and increase the period of time of large inflation.
And Dylan Alperin, head of qualified expert services at the provide chain software program agency Keelvar, noted that transportation prices make up 7.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of worldwide GDP, which means delays at ports typically direct to mounting inflation.
“The freight price for a solitary container from China to the U.S. went from $5,900 very last yr to $15,764 right now,” Alperin mentioned. The impact of these price improves by itself could substantially travel inflation up globally, he included.
Dawn Tiura, CEO of the Sourcing Marketplace Group (SIG), an affiliation of sourcing and procurement industry experts, explained that she also suspects that China’s lockdowns will guide to greater inflation.
“Our offer chains are so interconnected and they’ve turn out to be fragile that a solitary issue in just one put will influence buyers around the globe,” Tiura claimed.
And Jim Bureau, the CEO of Jaggaer, a global commerce and procurement technological know-how enterprise, observed that numerous U.S. companies resource raw resources and parts from Chinese suppliers, which could guide to shortages of important electronics and machinery components.
China accounts for 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of all the merchandise the U.S. imports, in accordance to Bank of The united states. And for computers and electronics, that range rises to 35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
“The most recent wave of shutdowns in China will only exacerbate source constraints, with a trickledown outcome on completed products provide,” Bureau included.
As French voters head to the polls Sunday, Wall Street is forecasting marketplace upset if much-right prospect Maritime Le Pen proves victorious.
Timothy A. Clary | Afp | Getty Images
French voters head to the polls on Sunday to cast their ballots in the last spherical of a close presidential race in between incumbent Emmanuel Macron and rival Marine Le Pen.
Centrist Macron was found using the direct versus his significantly-suitable opponent Friday as the pair facial area a rerun of their 2017 tete-a-tete.
In the closing day of campaigning ahead of this weekend’s second-spherical vote, polls showed Macron with a 57.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} direct more than Le Pen’s 42.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
But with the election coming at a time of renewed economic and political tension, each domestically and within just Europe at huge, the consequence is significantly from particular, in accordance to Wall Road.
This is a appear at some significant banks’ predictions:
Goldman Sachs
Goldman Sachs has set its body weight powering viewpoint polls, citing 90{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} odds of a Macron acquire.
Really should the incumbent be successful, traders can anticipate continuity inside markets — even as Macron seeks to revive his reformist agenda. This kind of reforms are already mostly embedded in existing industry forecasts, the lender stated in a analysis note Thursday.
Should really Le Pen gain, nonetheless, markets could be in for a shock amid mounting uncertainty all around France’s domestic and EU policy.
Below France’s electoral process, presidential powers are mostly dictated by parliament. The ultimate victor’s ability to govern will for that reason be decided by legislative elections in June, and with small parliamentary level of popularity, Le Pen could deal with an institutional deadlock.
That could considerably harm investor self confidence, reported Goldman, introducing that its marketplaces team would seem for a major widening of sovereign spreads in the circumstance of a Le Pen gain.
When Citigroup’s base situation is also for a Macron get, its chance is fewer very clear minimize at just 65{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
Certainly, the Wall Road lender said the opportunity of a Le Pen victory is now “considerably additional possible than in 2017,” amid risks of minimal voter turnout and reluctance between leftist voters to back Macron.
That could present downside pitfalls for inventory marketplaces, with French banks probably to face the largest hit.
“A shock victory by Le Pen, and related rise in bonds spreads, would probable set downside tension to the total French equity market place performance,” it said in a notice Tuesday.
For Societe Generale, the top end result is equally unclear, and a Le Pen victory “cannot be dominated out.”
“The race is very near and uncertainty continues to be substantial. We nonetheless see complacency about this election, and a Le Pen victory would direct to sharp repricing,” the French bank stated Tuesday.
All over again, fairness marketplaces — primarily euro zone banking institutions and Italian stocks, which are both equally delicate to EU integration — would be between the hardest strike by a Le Pen victory.
The financial institution also beforehand named some 37 French stocks with sector caps above 1 billion euros which could occur underneath certain tension from political risks surrounding social unrest, asset nationalization and EU plan. People include Air France-KLM, Accor and Renault.
In the credit card debt marketplaces, meanwhile, the unfold among French and German 10-calendar year bonds could soar to 90 basis factors right before in the long run settling in the 60-90 foundation points variety, if Le Pen have been to win. If Macron were reelected spreads would most likely keep on being about present-day stages at 45-50 basis details, it claimed.
Economists elsewhere agreed that the ultimate consequence could mark a decisive turning position in French politics.
“A victory for either of them would take France on a fully diverse political, economic, European, and geopolitical trajectory,” ING Economics explained Thursday.
Even though a Macron acquire would likely guide to even more EU integration, a Le Pen acquire would be “unfavorable to the cohesion of Europe” at a time when it faces renewed strain from adversaries in Russia.
“As France has usually been one of the driving forces of European integration, the election of a euroskeptic French president would be a rude awakening for the European Union. Not to mention the actuality that Le Pen has also been a lot more skeptical of the European sanctions from Russia,” it explained in a observe.
Among Le Pen’s priorities are withdrawing France from the integrated command of NATO and looking for rapprochement with Moscow — a very clear divergence from the EU’s broader stance.
“This leap into the unfamiliar would in all probability guide to an adverse financial marketplaces reaction and a extremely unsure economic trajectory, weighing on the expansion potential clients for the coming a long time,” stated ING.
Meantime, the pair’s conflicting sights on domestic plan could have key implications for business and foreign expenditure, according to Berenberg Economics.
“A great deal is at stake for France and the EU,” the economists noted Friday.
Domain Money founder and CEO Adam Dell provides insight into crypto regulation and Elon Musk exploring the Twitter tender offer.
Elon Musk has registered three companies in Delaware under the name “X Holdings” to support his bid to buy Twitter and take the social media giant private.
According to a filing with the Securities and Exchange Commission on Wednesday, X Holdings I would serve as the parent company overseeing a potential transaction, while X Holdings II would merge with Twitter and be used to purchase its outstanding common stock. A separate SEC filing adds that X Holdings III would be used to help fund the transaction.
HOUSE REPUBLICANS CALL ON TWITTER TO PRESERVE ELON MUSK’S TAKEOVER BID RECORDS
Musk is exploring whether to commence a tender offer to acquire all outstanding shares of Twitter’s common stock, citing the board’s lack of response to his $54.20 per share offer.
Musk says he has received commitments of approximately $46.5 billion to help finance a potential deal, including roughly $21 billion in equity financing and around $25.5 billion in debt financing through Morgan Stanley Senior Funding and other firms, including Bank of America, Mizuho Bank, Barclays, MUFG, Société Générale and BNP Paribas.
Twitter headquarters in San Francisco Oct. 27, 2021. (Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
Twitter told FOX Business Thursday it was in receipt of Musk’s updated, nonbinding proposal, adding that it “is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders.”
TWITTER’S REACTION TO ELON MUSK ONLY PROVES CHANGE IS NEEDED
Musk, who has a 9.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} stake in Twitter, has been a harsh critic of the platform and its chief executive, Parag Agrawal, and recently questioned whether the company rigorously adheres to free speech principles.
Though Musk was initially invited to join Twitter’s board, he later declined the offer. As part of joining the board, Musk would’ve been unable to own more than 14.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of Twitter’s stock while serving on the board or for 90 days after. Musk’s board term would have expired at Twitter’s 2024 annual meeting.
Tesla CEO Elon Musk during a tour of the plant of the future foundry of the Tesla Gigafactory Aug. 13, 2021, in Grünheide near Berlin, Germany. (Patrick Pleul – Pool/Getty Images / Getty Images)
Following the announcement of Musk’s $43 billion bid, Twitter adopted a limited duration shareholder rights plan, commonly referred to as a poison pill, to prevent him or any other entity or group from acquiring beneficial ownership of 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or more of Twitter’s outstanding common stock in a transaction not approved by the board. The plan will expire April 14, 2023.
Musk recently told TED’s Chris Anderson that combining everything into one company would be “tricky.”
“Telsa is a publicly-traded company, and the investor base of Tesla and SpaceX and certainly Boring Company and Neuralink are quite different,” Musk explained. “It’s not that easy to sort of combine these things.”
Marathon Oil Co. (NYSE:MRO – Get Rating) – Analysts at Capital One Financial dropped their Q1 2022 EPS estimates for Marathon Oil in a report released on Tuesday, April 19th. Capital One Financial analyst P. Johnston now forecasts that the oil and gas producer will post earnings of $0.83 per share for the quarter, down from their previous estimate of $1.05. Capital One Financial also issued estimates for Marathon Oil’s Q2 2022 earnings at $0.83 EPS, Q3 2022 earnings at $0.85 EPS, FY2022 earnings at $3.39 EPS and FY2023 earnings at $2.80 EPS.
Marathon Oil (NYSE:MRO – Get Rating) last released its earnings results on Wednesday, February 16th. The oil and gas producer reported $0.77 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.55 by $0.22. Marathon Oil had a net margin of 17.30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and a return on equity of 11.60{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The firm had revenue of $1.80 billion during the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the previous year, the business earned ($0.12) EPS. The business’s revenue was up 116.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on a year-over-year basis.
Several other research firms also recently issued reports on MRO. Barclays boosted their price objective on shares of Marathon Oil from $29.00 to $30.00 and gave the stock an “overweight” rating in a report on Tuesday, April 12th. Citigroup upped their target price on shares of Marathon Oil from $17.00 to $20.00 in a research note on Monday, January 3rd. Piper Sandler upped their target price on shares of Marathon Oil from $27.00 to $37.00 and gave the company an “overweight” rating in a research note on Thursday, April 7th. Raymond James upped their target price on shares of Marathon Oil from $27.00 to $31.00 and gave the company a “strong-buy” rating in a research note on Tuesday, February 22nd. Finally, Royal Bank of Canada upped their target price on shares of Marathon Oil from $28.00 to $30.00 and gave the company an “outperform” rating in a research note on Wednesday, March 30th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, eleven have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Buy” and an average price target of $26.80.
NYSE:MRO opened at $27.65 on Thursday. The firm’s 50-day moving average is $23.96 and its 200-day moving average is $19.49. Marathon Oil has a 52-week low of $9.70 and a 52-week high of $27.72. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.07 and a current ratio of 1.11. The company has a market cap of $19.87 billion, a price-to-earnings ratio of 22.85, a PEG ratio of 0.45 and a beta of 2.76.
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Sigma Planning Corp lifted its holdings in Marathon Oil by 111.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the first quarter. Sigma Planning Corp now owns 43,622 shares of the oil and gas producer’s stock valued at $1,095,000 after buying an additional 23,012 shares during the period. Adams Asset Advisors LLC acquired a new stake in Marathon Oil in the first quarter worth $228,000. Harbor Investment Advisory LLC raised its holdings in Marathon Oil by 138.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the first quarter. Harbor Investment Advisory LLC now owns 1,720 shares of the oil and gas producer’s stock worth $43,000 after purchasing an additional 1,000 shares during the period. Koshinski Asset Management Inc. raised its holdings in Marathon Oil by 67.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the first quarter. Koshinski Asset Management Inc. now owns 4,187 shares of the oil and gas producer’s stock worth $105,000 after purchasing an additional 1,685 shares during the period. Finally, Richelieu Gestion PLC acquired a new stake in Marathon Oil in the first quarter worth $188,000. Institutional investors and hedge funds own 77.26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the company’s stock.
In related news, insider Patrick Wagner sold 21,673 shares of the stock in a transaction that occurred on Tuesday, March 8th. The shares were sold at an average price of $25.45, for a total value of $551,577.85. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Rob L. White sold 8,700 shares of the stock in a transaction that occurred on Thursday, March 3rd. The shares were sold at an average price of $23.00, for a total transaction of $200,100.00. The disclosure for this sale can be found here. Insiders have sold 1,180,065 shares of company stock worth $29,703,167 over the last quarter. 0.76{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the stock is owned by company insiders.
The business also recently announced a quarterly dividend, which was paid on Thursday, March 10th. Stockholders of record on Wednesday, February 16th were given a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. This is a positive change from Marathon Oil’s previous quarterly dividend of $0.06. The ex-dividend date was Tuesday, February 15th. Marathon Oil’s dividend payout ratio is presently 23.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol.
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