When you buy shares of a company, you’re getting an ownership slice. If the company does well, your shares should rise. The company may even pay a dividend, providing you with cash you didn’t have to labor over for a living.
Sounds great! But, a company is more than just the sum of its shares. Companies have a capital structure, which includes a mix of stocks (called equity), and other types of financing, typically debt.
Nearly all companies have debt. Some debt, relative to the stock value, is fine. It’s a lot like the mortgage on your home—borrowed money that lets the company do th...
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Insider Activity: Capri Holdings (CPRI)
Apparel brand company CEO makes a $20 million buy into shares.
Chairman and CEO ofCapri Holdings (CPRI) John Idol just spent over $20 million on shares. He picked up over 615,000 shares of the company, increasing his stake by 30 percent.
The United Kingdom-based company manufactures apparel and accessories for men and women around the world, including such well-known brands as Versace, Jimmy Choo, and Michael Kors.
Shares have been weak year-to-date, and the $20 million buy-in is a major vote of confidence that shares can start turning around from here.
In the past year, shares...
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Unusual Options Activity: Las Vegas Sands (LVS)
A big, bearish trade implies more downside for the casino from here.
At least one trader is betting on a big decline in casino firmLas Vegas Sands (LVS).
On Tuesday, a large number of contracts traded on aDecember $40 put option. With shares currently trading around $55, which implies a 25 percent decline in shares between now and the end of the year for the put option to pay off like a winning slot machine.
The contract had over 1,360 trades, against an existing volume of just over 200 contracts.
Shares of the casino have traded as high as $81 in the past year. A slowdown in g...
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Unusual Options Activity: Facebook (FB)
Traders are betting that Facebook shares will bounce after Monday's decline.
Some traders are betting that shares ofFacebook (FB) are oversold.
The social media giant sold off with the other tech giants on Monday on news that the FTC will look into the company. Shares fell over 8 percent.
However, some traders see the move as too much, too soon, and expect shares to potentially move higher from here, with bets on options expiring at the end of this week on June 7.
With shares around $171 thanks to the selloff, a surge in call option buyers at the $170, $172, and $175 strike pri...
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Insider Activity: Sally Beauty Holdings (SBH)
Insiders are picking up shares at the cosmetics company.
Multiple insiders atSally Beauty Holdings (SBH) have been adding shares in recent days.
Chairman of the Board Robert McMaster picked up 5,000 shares, shelling out over $73,000 of his own money to add to his take.
CFO Aaron Alt bought 1,500 shares, paying over $22,000 to add to the cosmetic supply company.
On top of that, CEO Christian Brickman bought 5,000 shares for nearly $75,000 as well.
This is a nice cluster of corporate insiders. The CEO, Chairman and CFO are typically the best informed about a company and its fu...
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Insider Activity: The Hershey Company (HSY)
A chocolate bar, one of the most recognized brands built by Hershey
Multiple insiders atThe Hershey Company (HSY) have been buying shares, even with the company trading close to all-time highs.
These buys include the CFO and President, and amount to nearly $500,000. More buys may be coming in the next few days.
Typically, corporate insiders pick up shares when they sense an undervaluation. The only reason for insiders—already picking up a paycheck there—to buy more shares in the open market are in anticipation of a bigger move higher.
Over the past several years, offers have been...
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Unusual Options Activity: AT&T (T)
Networks and now content are the backbone of AT&T's success
Some traders are betting on a drop inAT&T (T).
The telecom/media conglomerate has been trading in a $30-33 range for most of the past year, with the recent downturn taking shares down to around $30 on Friday.
With a surge in volume on June put options for $29.50 and $30.00, some traders are expecting further weakness in shares before June options contracts expire, although not by much. This may indicate some more short-term market fear, but not too much more than what we’ve seen in the past few weeks.
The $29.50 pu...
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