Earnings Report 7/22-7/26

Twitter, Inc.

 

 

Twitter (TWTR) reports Earnings on July 26 before market open. 
When looking at insider buying/selling of TWTR stock, there has been frequent selling.  Twitter CFO, Ned Segal, sold $220k worth of stock on 7/11 as well as another $227k on 6/13. Robert Kaiden, Twitter’s Chief Accounting Officer, sold about $750 worth of stock on 5/8, 6/3, 6/21, 7/3. Insider selling of stock is generally a negative, but there could be circumstances that we aren’t aware about and must keep in consideration. http://openinsider.com/search?q=twtr

 

There are many positive outlooks on Twitter coming up in the future. Over the last two year, the stock has shown steady growth and could potentially keep this upward trend. Twitter is also no longer a speculative company as it has shown that it has a solid customer base which makes it a more trusted stock. With the upcoming presidential election, Twitter is also expected to have a significant increase in use. https://seekingalpha.com/article/4272185-twitter-looks-poised-another-upside-breakout

 

 

Mcdonald’s Corporation
McDonalds Corp (MCD)  reports Earnings on July 26 before market open.

 

McDonalds Corp (MCD) hasn’t had much recent activity from insider buying and selling which can be seen as a positive because insiders are holding. The most recent activity was at the beginning of May when there were some large options being exercised by the President of USA McDonalds’ Christopher Kempczinski exercise his option for $7.5 million worth of stock. Two EVP, Kevin Ozan and Jerome Krulewitch exercised options worth over $12 million together. http://openinsider.com/search?q=mcd

 

While MCD has been keeping up with the S&P’s gains, it has been given an Outperform rating and an increased price target to $230. McDonald’s is being transformed into a technology company by using high tech menus with touch screens, mobile ordering and delivering. Analysts believe this increase in technology will lead to sales growth and will be a “game changer” in the fast food industry.

 

 

Alphabet Inc.
Alphabet Inc (GOOGL)  reports Earnings on July 25 after market close.

 

 

When looking at insider buying and selling in Alphabet Inc (GOOGL) there has been a few recent sells. On 7/3, VP and Chief Accounting Officer, Amie O’Toole sold about $75k worth of stock as well as on 6/5, O’Toole also sold $71k of stock. The other selling has been from a Director, Ann Mather, on 6/11 and 7/1 sol $85k worth of stock.  http://openinsider.com/search?q=googl

 

Recently, Google has been struggling and has managed to cut about $70 billion off of its parent company’s market cap. Last quarter Alphabet reported a 17% rise in Q1 revenue which was its slowest sales growth in three years. Google’s advertising sales and paid clicks slowed also fell 19% which has hurt the company. https://markets.businessinsider.com/news/stocks/google-stock-alphabet-set-to-lose-70-billion-on-q1-ad-sales-traffic-2019-4-1028152666

 

After last quarters disappointing earnings report, analysts are mixed about Q2. While the S&P has risen 20.1% GOOGL is up about 8.5%. This is largely due to the poor report last quarter where shares fell 8% as well as in June when the Us Justice department was considering launching an antitrust probe into Google.

 

 

Starbucks Corporation
Starbucks Corporation (SBUX) reports Earnings on July 25 after market close.

 

 

When looking at insider buying and selling for Starbucks (SBUX), there were a few options exercised. Myron Ullman, a Director, exercised $845k worth of stock on 7/3. On 6/13, Vivek Varma, EVP of Public Affairs exercised an option worth about $3 million. On 6/13, EVP Chief Partner Officer, Lucy Helm exercised an option worth about $830k of stock. http://openinsider.com/search?q=sbux

 

Starbucks sees a significant potential in expanding their brand to China’s markets. SBUX CFO said “We enjoyed strong profitability, strong returns on new unit investment and we feel very good about the position that we’ve established with Chinese consumers with a brand that has resonated quite strongly with all generations of consumers”. Starbucks is facing competition in China with rapidly growing Luckin Coffee (LK).  But Starbucks is making moves to stay ahead of the competition. Last year the firm said it would work with Chinese e-commerce giant Alibaba in an effort to strengthen its delivery and retail network there. Under that partnership, Starbucks will try out Ele.me, a delivery platform that operates under the Alibaba umbrella.

 

SBUX was given an “outperform” rating from Credit Suisse who also called the company “one of the highest quality growth companies in restaurants”. Analysts also believe that after the strong performance numbers in Q1 that these can continue even longer. Analysts also believe that SBUX has the competitive edge over Dunkin’ Donuts a big competitor. This is because Dunkin doesn’t have the level of digital marketing and lack of emphasis on their rewards program. There has also been a shift in focus toward eating at home which would give SBUX the advantage because of their partnership with Nestle and LYFT for delivery services. 

 

 

3M Company

 

3M Company (MMM) reports Earnings on July 25 before market open.

 

 

There has been recent insider buying of MMM stock by Directors. On 5/20, David Dillon bought $203k worth of stock. On 5/9 and 5/10, Gregory Page purchased a total of $350k of MMM stocks. 

 

 

 

 

MGM Resorts International

 

MGM Resorts International (MGM) reports Earnings on July 25 after market close.
There has been frequent insider buying by ONE Director, Keith Meister. On 6/7 he purchased $75 million, on 6/12 he purchase $17 million, on 6/17 he purchased $12 million, on 6/20, he purchase $9.5 million, on 6/25 he purchased $10.5 million, and on 6/28 he purchased %5.8 million. This is a lot of money by one director. 

 

If true, this is big news. Sources have told Bloomberg that MGM is talking to advisors about a potential sale of the MGM Grand and Bellagio. If this is a good deal, its forecasted to raise as much as $5 billion in after tax proceeds. The casino operator is seen by Macquarie redeploying the capital for share buybacks which will end up improving the leverage ratio. MGM is rated as outperform with a price target of $34. 

 

Morgan Stanley Analysts said the predicted price for MGM in the upcoming period is $55 based on their research report published on 7/18. However, Credit Suisse gave MGM a target of $30 with a neutral rating. Once again Keith Meister was mentioned with his massive amounts of shares being bought at around $28 a share with well over $120 million in this stock.

 

 

Six Flags Entertainment Corporation
Six Flags Entertainment (SIX) reports earnings on July 24 after market close.

 

 

There have been no reports of any insider buying or selling, but Six Flags Entertainment (SIX) received three upgrades in a row, all in last month. SIX Q2 report is expected to show a solid $1.00 EPS as it is coming off its seasonal Q1 loss as it relies on warm and good weather to generate revenue. Wedbush Securities gave its upgrade because of the strong seasonal earnings, positive results from membership push, as well as an international expansion effort. https://finance.yahoo.com/news/3-hot-stocks-summer-season-122029433.html