Latest news with #WallStreetHorizon
Yahoo
13-07-2025
- Business
- Yahoo
Buybacks Reach Record Highs as Q2 Earnings Season Approaches
As we head into the second half of the year, expect record stock buyback activity for companies in the S&P 500. While we wait for official numbers to come out for Q2 which just closed last Monday, June 30, the year was off to a stellar start when Q1 buybacks hit a record of $293B, according to S&P Global. The previous record was set in Q1 2022 when buybacks totaled $281B.[1] Analysts have said they expect 2025 to hit $1T in total buybacks.[2] Buybacks remained top heavy, with the top 20 S&P 500 companies accounting for 48.4% of Q1 2025 buybacks, a slight decrease from 49% in Q4 2024. While the concentration amongst top stock repurchases still exists, more companies within the S&P 500 have been repurchasing stock as of late, and the number purchasing over 1% of their public stock has increased.[3] This story changes slightly when you look globally. Despite the dollar level of buybacks hitting records, Wall Street Horizon data shows that the actual number of announcements has been relatively low, historically speaking. The second quarter closed out with 164 announcements, that comes after Q1 recorded 168 buyback announcements. The quarterly average over the last five years has been 204 announcements. You can see in the chart below that those numbers are steadily climbing after bottom-ing out in 2023. Source: Wall Street Horizon As interest rates fall, as many are expecting at the next Fed meeting on July 30, holding onto cash tends to become less attractive to corporations who want to deploy and put it to work. Typically, buybacks are a good thing for shareholders as well, as they artificially improve earnings per share of a company, if not actually improving earnings. Share repurchases come under fire for this reason as well, with many arguing that companies could have put the money to better use by investing it back into the company. Investors tend to prefer companies that are buying back shares while also investing in growth. A great example is the mega tech names, many of which are the largest buyers of their own stock, but also tend to invest heavily in research and development and AI, among other things. As the Q2 earnings season begins on Tuesday, July 15th with reports from major banks, investors should closely monitor buyback announcements. An increase in share repurchases would indicate corporate America's renewed willingness to deploy cash, which could have positive implications for the US economy. 1 S&P 500 Q1 2025 Buybacks Set Quarterly Record at $293 Billion, S&P Global, June 25, 2025, 2 Wall Street could get a boost from $1 trillion in buybacks, Goldman says, Reuters, Nell Mackenzie, January 16, 2025, 3 S&P 500 Q1 2025 Buybacks Set Quarterly Record at $293 Billion, S&P Global, June 25, 2025, Copyright 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners. This article first appeared on GuruFocus. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
13-07-2025
- Business
- Yahoo
Buybacks Reach Record Highs as Q2 Earnings Season Approaches
As we head into the second half of the year, expect record stock buyback activity for companies in the S&P 500. While we wait for official numbers to come out for Q2 which just closed last Monday, June 30, the year was off to a stellar start when Q1 buybacks hit a record of $293B, according to S&P Global. The previous record was set in Q1 2022 when buybacks totaled $281B.[1] Analysts have said they expect 2025 to hit $1T in total buybacks.[2] Buybacks remained top heavy, with the top 20 S&P 500 companies accounting for 48.4% of Q1 2025 buybacks, a slight decrease from 49% in Q4 2024. While the concentration amongst top stock repurchases still exists, more companies within the S&P 500 have been repurchasing stock as of late, and the number purchasing over 1% of their public stock has increased.[3] This story changes slightly when you look globally. Despite the dollar level of buybacks hitting records, Wall Street Horizon data shows that the actual number of announcements has been relatively low, historically speaking. The second quarter closed out with 164 announcements, that comes after Q1 recorded 168 buyback announcements. The quarterly average over the last five years has been 204 announcements. You can see in the chart below that those numbers are steadily climbing after bottom-ing out in 2023. Source: Wall Street Horizon As interest rates fall, as many are expecting at the next Fed meeting on July 30, holding onto cash tends to become less attractive to corporations who want to deploy and put it to work. Typically, buybacks are a good thing for shareholders as well, as they artificially improve earnings per share of a company, if not actually improving earnings. Share repurchases come under fire for this reason as well, with many arguing that companies could have put the money to better use by investing it back into the company. Investors tend to prefer companies that are buying back shares while also investing in growth. A great example is the mega tech names, many of which are the largest buyers of their own stock, but also tend to invest heavily in research and development and AI, among other things. As the Q2 earnings season begins on Tuesday, July 15th with reports from major banks, investors should closely monitor buyback announcements. An increase in share repurchases would indicate corporate America's renewed willingness to deploy cash, which could have positive implications for the US economy. 1 S&P 500 Q1 2025 Buybacks Set Quarterly Record at $293 Billion, S&P Global, June 25, 2025, 2 Wall Street could get a boost from $1 trillion in buybacks, Goldman says, Reuters, Nell Mackenzie, January 16, 2025, 3 S&P 500 Q1 2025 Buybacks Set Quarterly Record at $293 Billion, S&P Global, June 25, 2025, Copyright 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners. This article first appeared on GuruFocus. Sign in to access your portfolio
Arab News
08-07-2025
- Business
- Arab News
Saudi trading in US stocks hits record $44bn, almost tripling year on year
RIYADH: Saudi investors posted record-breaking trading activity on US stock markets during the first quarter of 2025, reaching SR164.3 billion ($43.8 billion) — an annual rise of 164 percent. According to newly released data from the Kingdom's Capital Market Authority, the US now accounts for the overwhelming majority of Saudi trading activity in foreign stock markets. Out of SR166.2 billion in total foreign market trades during the first three months of the year, the North American country represented nearly 99 percent. Gulf Cooperation Council markets saw just SR953 million in trades according to the CMA report, while Asian and European markets attracted SR81 million and SR254 million, respectively. Arab markets remained marginal at SR13 million, and other international markets accounted for SR556 million. Robust performance by US growth stocks, particularly in the tech sector, have helped make American markets attractive after a somewhat sluggish 2022 and 2023. By the first quarter, a group of US tech giants, dubbed the 'Magnificent 7,' had delivered impressive earnings and upbeat revenue forecasts, fueling a rally in their share prices according to a May post by WallStreet Horizon. This coincided with a perception that the Federal Reserve was nearing the end of its tightening cycle; with the Fed keeping its benchmark rate unchanged around 4.25 percent to 4.5 percent during the quarter, and investors anticipated potential rate cuts later in 2025. Clarity in monetary policy has removed some uncertainty and supported appetite for equities, encouraging Saudi market participants to increase their exposure to US stocks. The investor base in the Kingdom has also matured in its understanding of global markets, aided by better technology, research, and regulatory support. This familiarity has reduced barriers to entry for trading abroad. Trading activity on the local Saudi market reached SR730.6 billion during the same period, meaning that US equities alone represented nearly 18 percent of all Saudi institutional and individual equity trading across geographies. The CMA's data revealed that Saudi engagement in US equities has more than doubled from its earlier peak of SR85.9 billion in the same period of 2022 and nearly tripled compared to the post-pandemic break observed in the first quarters of 2023 and 2024. Saudi Exchange's recent introduction of Saudi Depositary Receipts, instruments that allow domestic investors to trade foreign shares in riyals, is expected to further strengthen the structural link between local and international capital markets. The shift underscores the evolving profile of the Kingdom's investor base, particularly as more high-net-worth individuals, mutual funds, and institutional asset managers seek diversification outside the GCC. While the local market still dominates in absolute volume, the steady increase in foreign exposure, especially to the US, highlights Saudi Arabia's accelerating financial globalization.
Yahoo
27-06-2025
- Business
- Yahoo
Solar stocks climb, Equinix's weak outlook: Trending Tickers
Market Domination host Josh Lipton goes over some of today's trending tickers with Yahoo Finance anchor Julie Hyman and Christine Short, head of corporate event research at Wall Street Horizon. Solar stocks, like Enphase (ENPH), First Solar (FSLR), and SolarEdge (SEDG), surge after there was renewed talk in Congress of restoring clean energy tax credits. Equinix (EQIX) stock slid on the company's weaker-than-expected revenue forecast. The company also announced costly artificial intelligence (AI)–driven expansion plans that analysts say will hurt earnings. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Now time for some of today's trending tickers. We're keeping our eye on solar stocks, Equinix and the trade desk, starting off with those solar stocks, seeing gains today following the news that Congress is reconsidering putting clean energy tax credits back into that big beautiful bill. Enphase, one of those stocks, seeing a 10% price hike after dropping 38% year to date. These tax credits continuing would be a necessity for the solar industry, which we know has seen weakening residential demand. Julie, I know you know this this sector well. What what do you make of these moves? Yeah, I mean, a lot of this is speculation. We don't know what's going to end up in the final version of the bill, but really it seems like the the industry which has been lobbying very hard to keep these credits in or at least make the phase out more slow and more gentle to it. Uh they've been lobbying really hard and there were some comments from a senator from North Dakota earlier in the week that said maybe they could soften some of it a little bit. So the stocks surged on Tuesday, they didn't move much yesterday and they're surging again today as we get closer to a potential vote, um that and we'll have to see the final version of the bill to see indeed what ends up being in there. But these credits are really important to these businesses, to these solar businesses. They have spurred demand, especially in an era of high interest rates, right? For consumers who are trying to finance solar panels on their homes. Uh so the stakes are really high here and you definitely see um a lot of volatility in these names which have really been beat up in some cases this year because in some cases, Josh, this is kind of existential about whether these credits are going to continue or not. Christian, I want to bring you in here as well. You know, so so some of these names are pop today, Christine, but man, some of these names have also been whacked. They've been beaten down here right over the last month. I think the Invesco solar ETF has been down about close to 10%, especially since the announcements on these uh tax credits not being continued came out. Um but yeah, today, I mean, I was looking at a scent technologies almost 150% on this news, but as Julie cautioned, we don't have um it hasn't happened yet and we know these things tend to change. We don't know what credits would be staying, what would be going away. So, um I would exercise some caution as we sort of try to figure out um you know, what's gets voted on. But for now, yeah, certainly a win for the solar stocks that have been uh again, kind of a dog of a group for, you know, year to date. Dog of the group. Well put, well said, and accurate. Finally, Equinix shares fallen today at the announcement of the company forecasting below estimated revenue growth. The data center firm also reporting heavy investments in order to cater to AI demands in the future, which the company plans to double its current capacity over five years. Raymond James, BMO Capital also chose to downgrade the name because of the projected cost to double the company's AI capacities. Raymond James saying here, they they took this one down market performance of a hold. They talked about amidst of a multi-year shift in its business. They say change is likely beneficial in the long run, but there will be some pain out of the gate, Julie. Yeah, and you know, we've already seen some pain for Equinix, even if you don't take into account what we're seeing today. Um but including it, the shares are down about 20% so far this year. So it's really the kind of short-term pain for long-term gain that you just referred to here, the company making that investment and doubling that capacity in data centers is a data center real estate investment trust. Um and how investors feel about it depends on which analyst note that you're reading. So you mentioned the one from Raymond James, which is not so positive on it, but then I was also looking at some research from Michael Funk over at BVA. He's got a buy rating on this one and a $950 price target and he says, uh lower than previous that adjusted funds from operations per share, which is the metric that you look at for REITs here. He says the lower than previous guidance on that and dividend growth guidance coupled with lever levering up for future growth is a negative short-term shock to sentiment, he said, but he's looking at strong projected AI inference growth and commentary on customer demand. He says that justifies the investment in this stock. So again, it's kind of a matter of opinion here, Josh, depending on on how these various analysts and investors want to read it. Yep. This stock is down about 20%. Still the street though, 80% of analysts paid to give an opinion, they like this one. 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
26-06-2025
- Business
- Yahoo
Tracking Strong Dividend-Increase Trends Amid Macro Uncertainty
As we put the finishing touches on a first half that was littered with uncertainty, a small treasure is seen in global dividend trends. Thirty percent of the companies Wall Street Horizon tracks announced shareholder-payout increases in the second quarterthe best Q2 mark going back to 2021. Also, just 9% of companies from around the world slashed their dividend, which was the lowest in three years. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Healthy Dividend-Hike Rate in Q2 Source: Wall Street Horizon These continue strong numbers that we profiled earlier in the year. It also bodes well for the balance of 2025, despite so much macro uncertainty (there's that word!). Indeed, now more than ever, it's important to pay attention to and deeply analyze what those in the C-suite are doing versus what they are saying. Investors have heard the constant refrain of macro headwinds and an uncertain economic landscape ad nauseam, but all the while, corporations continue to churn out profits, buy back shares, and, yes, hike dividends (on net). The upshot? Investors must seek signals and dismiss the noise. More dividend payouts mean investment teams need to adjust stock prices to reflect these corporate actions properly in order to conduct time-series analysis. TMX's Price Adjustment Curve (PAC) provides price adjustments applicable down to tick level prices or even orders, and below you can see the number of recorded adjustments for North American dividends have been steadily increasing. H1 2025 recorded 17,509 such price adjustments (as of June 22, 2025). With one week left in the second quarter that number is on track to match or beat the first half record set in 2024 of 17,771 price adjustments. Source: TMX Datalinx Accurately tracking and analyzing these crucial corporate actions, such as dividend changes, at scale presents its own set of challenges. For asset management and risk professionals, manual processes and fragmented data systems can obscure insights and increase risk. To explore this topic further, join our Data Minds webinar tomorrow, Wednesday, June 25, at 10 a.m. ET. Industry experts Judith Gu of Scotiabank and Armando Benitez of BMO Capital will explore how transforming corporate action workflows can provide the edge needed in today's fast-paced market. They will delve into the role of automation in driving timely investment insights, share real-world case studies, and discuss best practices for aligning stakeholders through integrated systems. Earlier this month, Caterpillar (NYSE:CAT) announced a 7% dividend increase, bringing its quarterly distribution to $1.51.[1] An S&P 500 Dividend Aristocrats Index member (companies that have raised their dividends in each of the past 25 consecutive years), the all-American brand is one of many multinational corporations facing the threat of higher tariffs. Shares are merely flat on the year, but gains off the April 8 closing low have been massive, on the order of 30%-plus. The sellside is still gaming out how the future trade landscape will impact CAT. In May, the $168 billion Industrials-sector firm was upgraded to Hold from Sell at UBS amid improving US-China trade talks.[2] Then, on the same day the Texas-based blue chip announced its dividend hike, BMO Capital Markets tagged CAT as a GARP candidate (growth at a reasonable price).[3] But the stock is a far cry from its late 2024 all-time high of $419. Resting right now at its flat 200-day moving average, the bears might argue it's a dead-CAT bounce. Time will tell, but it appears the company's management team is just fine with where it's positioned heading into H2 2025. Looking ahead, Caterpillar's Q2 earnings date is Tuesday, August 5, BMO (confirmed). Turning from Industrials to the Health Care sector, UnitedHealth Group (NYSE:UNH) is battling through what may be the most tumultuous year in its five-decade history. Shares are down 39% year to date, underperforming the S&P 500 by more than 40 percentage points on a total return basis. Before 2025 began, the tragic murder of UnitedHealthcare CEO Brian Thompson last December heightened public and investor scrutiny of the company. Then, in its January earnings report, higher-than-expected medical costs, particularly within its Medicare Advantage business, resulted in a soft FY 2025 profit guide.[4] Investors didn't like thatthe stock fell 6% in the session that followed the Q4 earnings report. That decline was a paper cut compared to the severe pain shareholders endured three months later. UNH plunged by more than 22% after its Q1 earnings release, its worst single-day drop in decades. Near the beginning of the earnings season in April, the company slashed its full-year profit outlook after missing on the top and bottom lines.[5] Its medical cost ratio, which is like an inverted profit margin for a health insurance company, was once again above what analysts hoped for. By the time the dust settled, what was once the largest weight in the Dow Jones Industrial Average was among the biggest S&P 500 laggards in 2025. The pain wasn't done, however. Within a month of their Q1 report, a story surfaced that UnitedHealth was the target of a US Department of Justice probe into possible Medicare fraud.[6] Another 11% was shed from the stock's value, dropping it to the No. 10 spot on the DJIA weighting list at the time. The good news? On June 6, UNH announced a $2.21 quarterly dividend, a 5.2% increase from the previous $2.10 quarterly payout.[7] Shares, so far, have stabilized above $300 after notching an intraday low of $247 on May 15. Once the biggest company by market cap in the Health Care sector, the embattled insurer faces headwinds and public scorn, but the dividend hike news is a welcome relief for its stockholders. UNH reports Q2 results on Tuesday, July 29 BMO (confirmed). Eyes now turn to the second half. There's still macro wood to chop to help clear out all this uncertainty being bandied about. We expect developments on the trade front with President Trump's July 9 reciprocal tariff pause deadline in sight. Moreover, the One Big, Beautiful Bill is still being chiseled in the Senate. Higher oil prices due to the Israel-Iran conflict add yet another wildcard into the macro shuffle, too. All the while, it's clear that Chair Powell and the rest of the Federal Reserve's Open Market Committee members are standing pat on interest rates. Be on the lookout for potential volatility this week on the data front. According to our new Economic Calendar, the May Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, hits the tape this Friday. Market bulls hope for another tame update on consumer prices. Economic surprises have turned south, worries grow about the labor market, and there's increasing conflict in the Middle East. Amid so much angst and a plethora of unknowns, companies signal optimism, at least according to the high percentage of dividend hikers to slashers. Though the summer travel season is in full swing, investors stay on watch as macro and firm-specific volatility catalysts are front and centerand earnings season is just two weeks away! 1 Caterpillar Inc. Increases Dividend, Caterpillar Inc., June 11, 2025, Caterpillar upgraded to Hold from Sell at UBS as downside trade risk reduced, Seeking Alpha, Carl Surran, May 16, 2025, BMO Capital Markets spotlights GARP strategy for 16 industrial stocks, Seeking Alpha, Jason Capul, June 11, 2025, UnitedHealth Group Reports 2024 Results, UnitedHealth Group, January 16, 2025, UnitedHealth Group Reports First Quarter 2025 Results and Revises Full Year Guidance, UnitedHealth Group, April 17, 2025, UnitedHealth Group Is Under Criminal Investigation for Possible Medicare Fraud, The Wall Street Journal, Christopher Weaver, Anna Wilde Mathews, May 15, 2025, UnitedHealth raises dividend by 5.2% to $2.21, Seeking Alpha, Deepa Sarvaiya, June 6, 2025, Copyright 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
