Latest news with #KenWolter
Yahoo
6 days ago
- Business
- Yahoo
Target Corporation (TGT): A Bull Case Theory
We came across a bullish thesis on Target Corporation (TGT) on LongYield's Substack. In this article, we will summarize the bulls' thesis on TGT. Target Corporation (TGT)'s share was trading at $94.29 as of 23rd May. TGT's trailing and forward P/E were 10.36 and 11.96 respectively according to Yahoo Finance. Ken Wolter / Target Corporation (NYSE: TGT) reported first-quarter 2025 results that reflect a difficult retail environment marked by a 2.8% decline in net sales to $23.8 billion and a 3.8% drop in comparable sales, with store sales down 5.7% and traffic declining 2.4%. While digital sales grew 4.7%, and same-day services surged, these gains were not enough to offset macroeconomic headwinds like inflation, tariff pressures, and cautious consumer spending. Adjusted EPS fell to $1.30 from $2.03, missing expectations, while gross margins contracted due to markdowns and digital fulfillment costs. However, improved shrink helped offset some margin pressure. Despite near-term weakness, Target maintained strong capital deployment, repurchasing $251 million in shares and paying $510 million in dividends. The company lowered its full-year EPS guidance to $7.00–$9.00 and expects capital expenditure near the low end of $4–$5 billion. Target gained market share in 15 of 35 tracked categories, with strength in essentials, apparel, and seasonal goods, aided by standout campaigns like the Kate Spade collaboration. Its positioning on value and curated offerings kept it competitive with peers such as Walmart and Amazon. Geopolitical and tariff risks remain a concern, but Target is aggressively diversifying sourcing and holding prices steady. Omnichannel investments continue to pay off, with stores fulfilling 96% of sales and fulfillment speeds improving. Inventory was elevated but is expected to normalize by year-end. Though Q1 disappointed and guidance was cut, Target's digital momentum, cost control, and long-term strategy offer a foundation for recovery and long-term investor appeal. Previously, we have covered Target Corporation (TGT) in April 2025 wherein we summarized a bearish thesis by maparo on wallstreetbets subreddit page. The author highlighted that the company faced multiple challenges, including declining consumer spending, weakening foot traffic, and a stagnant financial outlook with slipping sales and earnings. Critics argued that Target's pricing and brand positioning had eroded, leaving it vulnerable to competition from Walmart, Amazon, and Costco, while looming tariff pressures threatened to further squeeze margins. Overall, the analysis warned of a structural decline and recommended bearish trades due to the risk of further stock price weakness. Since our last coverage, the stock is up 2.32%. Target Corporation (TGT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held TGT at the end of the first quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TGT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
Motorola Solutions (MSI) Acquires Silvus Technologies for $4.4 Billion
On Wednesday, May 28, Motorola Solutions Inc. (NYSE:MSI) announced its acquisition of privately held Silvus Technologies Inc., a wireless radio manufacturer specializing in MIMO (Multiple Input, Multiple Output) communication technology. The all-cash deal is valued at $4.4 billion. Silvus was previously owned by private equity firm TJC (earlier known as The Jordan Company), which acquired it in 2019. In addition to the cash consideration, certain Silvus employees holding equity will receive $20 million in restricted stock. The deal also includes a potential performance-based payout of up to $600 million, contingent upon achieving specific performance metrics during consecutive 12-month periods ending in 2027 and 2028. Ken Wolter / According to Bloomberg data, this marks Motorola's only billion-dollar-plus acquisition in the past decade, despite the company completing around 40 acquisitions over that period. This underscores Motorola's conviction in Silvus' capabilities and the strategic value of its technology. The acquisition is particularly timely amid rising global conflicts, where demand for secure, resilient communication technologies is accelerating. Silvus' mobile ad-hoc networking (MANET) technology enables decentralized, infrastructure-free communication, a key advantage in mission-critical and frontline situations. Motorola believes Silvus will strengthen its existing portfolio and expand its offerings to military, law enforcement, and commercial clients. The combination of Silvus' cutting-edge engineering with Motorola's global scale aims to deliver more advanced and secure solutions across various industries. Motorola Solutions is a global technology, communications, and security company. It provides high-tech security and mission-critical communication products for businesses and governments. While we acknowledge the potential of MSI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSI and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Motorola Solutions (MSI) Acquires Silvus Technologies for $4.4 Billion
On Wednesday, May 28, Motorola Solutions Inc. (NYSE:MSI) announced its acquisition of privately held Silvus Technologies Inc., a wireless radio manufacturer specializing in MIMO (Multiple Input, Multiple Output) communication technology. The all-cash deal is valued at $4.4 billion. Silvus was previously owned by private equity firm TJC (earlier known as The Jordan Company), which acquired it in 2019. In addition to the cash consideration, certain Silvus employees holding equity will receive $20 million in restricted stock. The deal also includes a potential performance-based payout of up to $600 million, contingent upon achieving specific performance metrics during consecutive 12-month periods ending in 2027 and 2028. Ken Wolter / According to Bloomberg data, this marks Motorola's only billion-dollar-plus acquisition in the past decade, despite the company completing around 40 acquisitions over that period. This underscores Motorola's conviction in Silvus' capabilities and the strategic value of its technology. The acquisition is particularly timely amid rising global conflicts, where demand for secure, resilient communication technologies is accelerating. Silvus' mobile ad-hoc networking (MANET) technology enables decentralized, infrastructure-free communication, a key advantage in mission-critical and frontline situations. Motorola believes Silvus will strengthen its existing portfolio and expand its offerings to military, law enforcement, and commercial clients. The combination of Silvus' cutting-edge engineering with Motorola's global scale aims to deliver more advanced and secure solutions across various industries. Motorola Solutions is a global technology, communications, and security company. It provides high-tech security and mission-critical communication products for businesses and governments. While we acknowledge the potential of MSI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSI and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
McDonald's Affirms Financial Strength with $1.77 Quarterly Dividend
Despite facing a challenging macro environment characterized by reduced traffic in fast food chains, McDonald's Corporation's (NYSE:MCD) has reiterated its commitment to returning value to shareholders. On May 20, the company announced a $1.77 quarterly cash dividend, payable on June 16, to shareholders of record as of June 2, 2025. Ken Wolter / McDonald's has always been a staple in income-focused portfolios, given its impressive record in returning value through dividends. Backed by a globally recognized brand and efficient franchise models, the company has paid dividends for 47 years. The nearly half-century commitment underscores the company's commitment to shareholder value, backed by solid financial strength. The company boasts a solid five-year dividend growth rate of 5.96%. Its current yield of 2.21% outpaces the S&P 500 average yield of 1.32%. While its payout is 57.2%, there is room for future growth. The new $1.77 a share dividend comes on the heels of McDonald's delivering mixed first-quarter results. Revenue in the quarter was down by 3%, hurt by a 3.6% same-store sales drop, the steepest decline since 2020. The company is facing slowing consumer spending amid heightened inflation. Nevertheless, the stock has outperformed the overall market by an 8% year-to-date gain. Likewise, Loop Capital has reiterated a Buy rating on the stock with a $346 price target. While we acknowledge the potential of McDonald's Corporation (NYSE:MCD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MCD and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Yahoo
23-05-2025
- Business
- Yahoo
McDonald's Affirms Financial Strength with $1.77 Quarterly Dividend
Despite facing a challenging macro environment characterized by reduced traffic in fast food chains, McDonald's Corporation's (NYSE:MCD) has reiterated its commitment to returning value to shareholders. On May 20, the company announced a $1.77 quarterly cash dividend, payable on June 16, to shareholders of record as of June 2, 2025. Ken Wolter / McDonald's has always been a staple in income-focused portfolios, given its impressive record in returning value through dividends. Backed by a globally recognized brand and efficient franchise models, the company has paid dividends for 47 years. The nearly half-century commitment underscores the company's commitment to shareholder value, backed by solid financial strength. The company boasts a solid five-year dividend growth rate of 5.96%. Its current yield of 2.21% outpaces the S&P 500 average yield of 1.32%. While its payout is 57.2%, there is room for future growth. The new $1.77 a share dividend comes on the heels of McDonald's delivering mixed first-quarter results. Revenue in the quarter was down by 3%, hurt by a 3.6% same-store sales drop, the steepest decline since 2020. The company is facing slowing consumer spending amid heightened inflation. Nevertheless, the stock has outperformed the overall market by an 8% year-to-date gain. Likewise, Loop Capital has reiterated a Buy rating on the stock with a $346 price target. While we acknowledge the potential of McDonald's Corporation (NYSE:MCD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MCD and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
