Latest news with #retailinvestors
Yahoo
a day ago
- Business
- Yahoo
Where Will Chime Be in 3 Years?
Key Points Chime stock is trading around its closing price on its first day of trading, giving retail investors a chance to buy early. It's reporting strong growth in a niche financial services sector. Management sees a large opportunity to expand its platform and its audience. 10 stocks we like better than Chime Financial › Every investor would love the opportunity to get in early on initial public offerings (IPOs). The earlier you buy, the better the chance to gain, at least in theory. That's not what always happens, especially today, when IPOs are very public indeed and often come with a lot of hype. Part of the problem is that most of an IPO's shares go to institutional investors, especially the investment banks that underwrite the offering. Retail investors get a chance to buy only after the stock is already on the open market, and with the speed at which stocks trade in the markets in the digital age, prices can run up quickly, making it unaffordable for retail investors to have any real chance at a low price. The good news, for retail investors at least, is that this model lends itself to price drops. IPO stock Chime Financial (NASDAQ: CHYM) is a great example. The IPO market has been quiet lately, and Chime was one of few exciting stocks going public in recent months. It priced its IPO at $27 per share, and the stock opened on the stock market at $43. However, it ended the first day at $35, about where it stands today, a few weeks later. Is this an opportunity for retail investors? Let's see where Chime could be three years from now. Equal access in banking Chime is an all-digital bank targeting lower-income clients with financial products to make their lives easier. It grew out of a desire to fill a gap in the banking system, which it says isn't favorable to the two-thirds of Americans who are living paycheck to paycheck. Since this population isn't filling their bank accounts with lucrative deposits, the traditional banking system charges them fees in order to make a profit from them. With today's abundant technology, Chime's founders set out to create an agile and low-cost bank with a different money-making model that relies on interchange fees from credit card payments. Instead of investing in creating its own bank, it has partnerships with two banks that give the company a small cut for the deposits they get from it. Today, Chime offers a small but growing set of services, including savings accounts and credit cards, and it has 8.6 million customers. Of the 75% of transactions per customer in the first quarter, 70% were for nondiscretionary purchases, and 67% of account holders use Chime as their primary bank account. The target population is finding value with Chime. According to a 2024 internal company survey, more people making less than $100,000 annually switched to the company or opened with it for direct deposit more than any other bank, and 75% of Chime members say they will be members for life. They have 3.3 products on average, indicating that members are enjoying being in the ecosystem. Expanding access and its market Right now, management sees an $86 billion opportunity in serving the 196 million Americans who make less than $100,000 annually, of which it has a 3% share. However, it sees potential to expand its platform and its audience and envisions a market opportunity of $426 billion. It's still getting started, which is why it could be attractive for investors. Revenue increased 24% year over year in the 2025 first quarter to $519 million, and gross margin remained at 88%. It reported positive net income in the first quarter in 2024 and 2025, but it has yet to report an annual net profit. New stocks are generally risky, but it looks like Chime has a strong and innovative business model as well as the loyalty of its members. Three years from now, the company is likely to be a lot larger, with more customers and products. Taking that 24% figure as a potential compound annual growth rate during the next three years, it would have about $3.2 billion in revenue, or close to double today's figure. It could be profitable, and if it is, the market might give it a higher valuation, increasing the chance of significant stock gains. Should you buy stock in Chime Financial right now? Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chime Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Where Will Chime Be in 3 Years? was originally published by The Motley Fool 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
2 days ago
- Business
- Yahoo
Metals X Limited's (ASX:MLX) largest shareholders are retail investors with 47% ownership, public companies own 23%
Key Insights Metals X's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public A total of 13 investors have a majority stake in the company with 50% ownership 19% of Metals X is held by Institutions Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To get a sense of who is truly in control of Metals X Limited (ASX:MLX), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 47% ownership. Put another way, the group faces the maximum upside potential (or downside risk). And public companies on the other hand have a 23% ownership in the company. In the chart below, we zoom in on the different ownership groups of Metals X. Check out our latest analysis for Metals X What Does The Institutional Ownership Tell Us About Metals X? 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. Metals X already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Metals X, (below). Of course, keep in mind that there are other factors to consider, too. We note that hedge funds don't have a meaningful investment in Metals X. APAC Resources Limited is currently the largest shareholder, with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.3% and 5.0% of the stock. A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time. Insider Ownership Of Metals X The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. We can see that insiders own shares in Metals X Limited. It has a market capitalization of just AU$541m, and insiders have AU$18m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling. General Public Ownership The general public-- including retail investors -- own 47% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Private Company Ownership It seems that Private Companies own 6.6%, of the Metals X stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. Public Company Ownership Public companies currently own 23% of Metals X stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Metals X is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable... If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
Bloomberg
2 days ago
- Business
- Bloomberg
Jane Street to Argue That Retail Demand Drove Its India Trades
Jane Street Group LLC is expected to argue that its controversial Indian options trades were a response to outsized demand from retail investors, people familiar with the matter said. The trading giant has been working on its defense against market manipulation allegations from the Securities and Exchange Board of India. The regulator in early July alleged Jane Street had taken large positions that artificially influenced prices in the country's stock and futures markets, moving them in favor of its options bets on multiple days.
Bloomberg
2 days ago
- Business
- Bloomberg
Robinhood CEO: ‘Tragedy' That Retail Can't Tap Private Markets
Robinhood CEO Vlad Tenev said retail investors are largely excluded from the 'huge opportunity' available in private markets. Tenev spoke with Carlyle Co-Founder & Co-Chairman David Rubenstein for an episode of Bloomberg Wealth. This interview was recorded July 17 at Menlo Park, CA. (Source: Bloomberg)
Yahoo
2 days ago
- Business
- Yahoo
Why Kohl's (KSS) Stock Is Down Today
What Happened? Shares of department store chain Kohl's (NYSE:KSS) fell 5% in the morning session after analyst commentary from JPMorgan Chase & Co. highlighted significant downside risk, puncturing momentum from a recent meme-stock rally. The investment bank raised its price target on the retailer to $10 from $8 but maintained its 'underweight' rating. This new target implied a potential downside of over 21% from the stock's trading price, signaling a continued bearish outlook. The negative sentiment came after the stock had surged more than 33% in the prior week. That rally was attributed to a short squeeze driven by retail investors rather than an improvement in the company's financial health. Kohl's fundamentals remained challenged, as the company had recently reported a 4.1% year-over-year revenue decline and guided for a sales decrease for the full year. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Kohl's? Access our full analysis report here, it's free. What Is The Market Telling Us Kohl's shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock dropped 16.4% on the news that the stock gave back a significant portion of the previous day's massive gains, which were driven by a meme-stock-style trading frenzy. The department store retailer's stock had soared 38% the previous day in the absence of any company-specific news, a surge attributed to retail investors on social media platforms targeting the heavily shorted stock. Nearly half of Kohl's available shares were held by short sellers, making it a prime candidate for a "short squeeze," where rising prices force bearish investors to buy shares to cover their positions, further fueling the rally. However, the speculative momentum appeared to wane on Wednesday. The stock's fundamentals remained a point of concern for investors, with the company having previously guided for a decline in same-store sales for fiscal 2025 and facing ongoing leadership uncertainty. Kohl's is down 10.2% since the beginning of the year, and at $12.60 per share, it is trading 41.8% below its 52-week high of $21.66 from July 2024. Investors who bought $1,000 worth of Kohl's shares 5 years ago would now be looking at an investment worth $621.30. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. 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
