Commodity Channel Index
|Bid||29.98 x 900|
|Ask||30.28 x 800|
|Day's Range||29.71 - 30.28|
|52 Week Range||26.99 - 34.76|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 04, 2020 - Aug 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||33.14|
Is it time to run with the bulls? Writing from investment bank JPMorgan, quantitative strategist Marko Kolanovic says it is. You may remember Kolanovic, if you follow market news regularly; he was one of the few who correctly called the bottom back in March. Now he says that the near- to mid-term prospects remain bullish. He notes two points of particular importance for investors, economic support policies, and the ongoing COVID-19 epidemic.Regarding policy support, Kolanovic is quick to connect recovery in liquidity with the massive fiscal and monetary support put in place by Congress and the Federal Reserve. He reminds investors that “liquidity has recovered meaningfully from the March lows.”The second point is more subtle. Kolanovic writes, “Higher COVID-19 incidence in mainly impacting younger populations, [with] drastically lower mortality rates and likely reflects high testing rates, recent protests, backlogs of hospital visits, and increased economic activity.” In other words, as we return to normal life, more people are getting exposed to the virus – but the people getting exposed are more resistant to the disease, and the death rates are dropping. The coronavirus crisis is turning out less dangerous than was originally feared, and that is good news – especially for stock bulls.Kolanovic’s colleagues at JPM have run with his bullish view, and are pinpointing stocks that have great upside potential. We’ve used the TipRanks database to pull the details on three of those stocks – the upsides start at 22%, but let’s see what else makes them compelling to JPM’s experts.Warner Music Group (WMG)After a nine-year run as a private company, Warner Music, the global music industry’s third largest recording company, completed a new IPO just last month. The stock sale raised almost $2 billion, and was considered a smashing success. Music is a competitive industry, and Warner has some aces in the hole. The company owns recording rights to a slew of big-name artists, including Madonna, Prince, the Rolling Stones, and Metallica. This playbook is an enormous asset, and one that puts Warner on solid footing.With just one month of market trading behind it, WMG hasn’t got a long history for analysts to review – but it does have that playbook, and JPM analyst Alexia Quadrani is suitably impressed. Quadrani writes, “As the only pure play music content company, WMG is well-positioned to benefit from the ongoing growth in paid music streaming globally. We believe WMG shares will maintain a premium valuation over the average of our large-cap media universe due to its higher growth profile, and our outlook reflects our confidence in the growth of streaming and WMG’s execution.”To this end, Quadrani rates WMG a Buy and suggests a $40 price target, which implies a robust upside of 36%. (To watch Quadrani’s track record, click here)In its first month since the IPO, WMG shares have earned a Moderate Buy rating from the analyst consensus. Wall Street’s stock watchers are divided 7 to 8 on Buys and Holds, mainly reflecting caution during the coronavirus crisis. The stock’s $33.64 average price target indicates a one-year upside potential of 15% from the current share price of $33.64. (See WMG stock analysis on TipRanks)Varonis Systems, Inc. (VRNS)With so many people moving to remote work, data security is at a greater premium than ever. Varonis Systems, a security software company, offers a platform that is perfect for the times. Using digital behavior analysis techniques, Varonis’ platform allows businesses to identify cyberattacks based on abnormal user behavior. It’s an idea whose time has clearly come, and Varonis is running with it. The company’s newest platform features remote work security capability.That doesn’t mean the company was able to fully dodge the corona bullet. The broad declines in Q1 – due to the social and economic lockdown policies – put a hurt on VRNS. The company reported steep losses in earnings, seeing the net loss drop sequentially from 47 cents to $1.05. Revenue performed better, beating the forecast at $54.18 million.The stock, however, has performed better than the earnings, rising nearly 27% year-to-date.Sterling Auty, 5-star analyst with JPM, lays out a clear case to explain Varonis’ strong share appreciation: “[We] believe Varonis represents one of those attractive situations as its subscription transition offers the opportunity for significant outperformance relative to revenue and margin estimates that we believe can deliver stock outperformance. This is aided by the growing need for data security solutions as cloud adoption increases and work-from-home setups drive usage of tools that create security challenges.”Auty’s Buy rating on the stock is supported by his $130 price target, which indicates room for a potential 31% upside in the coming year. (To watch Auty’s track record, click here)Overall, Varonis has a Strong Buy rating from the analyst consensus, based on 11 Buys versus just 2 Holds. The stock’s recent share gains, however, have pushed the price almost up to the average price target. VRNS currently trades at $98.58; the average target is $100.36. (See Varonis stock analysis on TipRanks)Masonite International (DOOR)Last on our list is a major name in the construction industry. Tampa-based Masonite, through its subsidiary companies, manufactures doors and their associated systems (frames, screens, windows, and locks) for both interiors and exteriors. It’s a niche product, but an important one; even a small house can have two exterior doors and 8 or 10 interior ones.Masonite posted a strong Q1, despite the corona crisis. Net sales increased 4%, reaching $551 million. EPS rose sharply, too, to $1.24. These gains came even as the company withdrew its full-year 2020 guidance due to COVID-19 concerns.JPM’s Michael Rehaut likes what he sees in Masonite, noting, "[Not] only did the company provide a positive sales update – pointing to June sales down only mid single-digits (with N. America Residential up modestly), following May down low teens – but importantly, DOOR also pointed to some positive margin trends as well,""[We] point to the company’s pricing strategy, strong execution and longer term margin optimization efforts as positive differentiators, along with its attractive relative valuation trading at only roughly 8.5x and 7.3x our 2020E and 2021E EBITDA, respectively," the analyst concluded. In line with his comments, Rehaut puts a $95 price target and a Buy rating on DOOR shares. His target implies an upside of 22% for the next 12 months. (To watch Rehaut’s track record, click here)DOOR is another stock with a Strong Buy consensus rating, in this case based on 6 Buys and 2 Holds. Shares are currently trading at $77.54, and the average price target of $85.38 suggests a one-year upside of 10%. (See Masonite’s stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Upgrades * SunTrust Robinson Humphrey changed the rating for CoreLogic Inc (NYSE: CLGX) from Hold to Buy. In the first quarter, CoreLogic showed an EPS of $0.76, compared to $0.45 from the year-ago quarter. The stock has a 52-week-high of $68.40 and a 52-week-low of $24.69. CoreLogic's stock last closed at $67.95 per share. * For Big Lots Inc (NYSE: BIG), Loop Capital upgraded the stock from Hold to Buy. For the first quarter, Big Lots had an EPS of $1.26, compared to year-ago quarter EPS of $0.92. The stock has a 52-week-high of $44.90 and a 52-week-low of $10.12. Big Lots's stock last closed at $43.02 per share. * For Southwest Airlines Co (NYSE: LUV), Goldman Sachs upgraded the stock from Sell to Buy. For the first quarter, Southwest Airlines had an EPS of ($0.15), compared to year-ago quarter EPS of $0.70. The stock has a 52-week-high of $58.83 and a 52-week-low of $22.46. Southwest Airlines's stock last closed at $31.96 per share. * Raymond James upgraded the stock for CDW Corp (NASDAQ: CDW) from Market Perform to Outperform. In the first quarter, CDW showed an EPS of $1.38, compared to $1.24 from the year-ago quarter. The stock has a 52-week-high of $146.09 and a 52-week-low of $73.39. CDW's stock last closed at $108.49 per share. * Evercore ISI Group changed the rating for Chart Industries Inc (NASDAQ: GTLS) from In-Line to Outperform. In the first quarter, Chart Industries showed an EPS of $0.57, compared to $0.39 from the year-ago quarter. The stock has a 52-week-high of $78.80 and a 52-week-low of $15.00. Chart Industries's stock last closed at $45.22 per share. * For The Middleby Corp (NASDAQ: MIDD), KeyBanc upgraded the stock from Sector Weight to Overweight. The Middleby earned $1.33 in the first quarter, compared to $1.38 in the year-ago quarter. The stock has a 52-week-high of $142.98 and a 52-week-low of $41.73. The Middleby's stock last closed at $72.98 per share. Downgrades * Credit Suisse changed the rating for AMC Entertainment Holdings Inc (NYSE: AMC) from Neutral to Underperform. For the first quarter, AMC Entertainment had an EPS of ($2.22), compared to year-ago quarter EPS of ($1.25). The stock has a 52-week-high of $12.49 and a 52-week-low of $1.95. AMC Entertainment's stock last closed at $4.16 per share. * For Beyond Meat Inc (NASDAQ: BYND), Barclays downgraded the stock from Overweight to Underweight. Beyond Meat earned $0.03 in the first quarter, compared to ($0.14) in the year-ago quarter. The stock has a 52-week-high of $239.71 and a 52-week-low of $48.18. Beyond Meat's stock last closed at $141.68 per share. * For Cinemark Holdings Inc (NYSE: CNK), Credit Suisse downgraded the stock from Outperform to Neutral. For the first quarter, Cinemark Hldgs had an EPS of ($0.37), compared to year-ago quarter EPS of $0.28. The stock has a 52-week-high of $41.60 and a 52-week-low of $5.71. Cinemark Hldgs's stock last closed at $11.39 per share. * Wells Fargo downgraded the stock for CoreLogic Inc (NYSE: CLGX) from Overweight to Equal-Weight. CoreLogic earned $0.76 in the first quarter, compared to $0.45 in the year-ago quarter. The stock has a 52-week-high of $68.40 and a 52-week-low of $24.69. CoreLogic's stock last closed at $67.95 per share. * For Diamondback Energy Inc (NASDAQ: FANG), BMO Capital downgraded the stock from Outperform to Market Perform. In the first quarter, Diamondback Energy showed an EPS of $1.45, compared to $1.39 from the year-ago quarter. The stock has a 52-week-high of $111.84 and a 52-week-low of $14.55. Diamondback Energy's stock last closed at $41.13 per share. * For Fiserv Inc (NASDAQ: FISV), Oppenheimer downgraded the stock from Outperform to Perform. Fiserv earned $0.99 in the first quarter, compared to $0.84 in the year-ago quarter. The stock has a 52-week-high of $125.05 and a 52-week-low of $73.50. Fiserv's stock last closed at $94.92 per share. * Goldman Sachs changed the rating for Neurocrine Biosciences Inc (NASDAQ: NBIX) from Buy to Neutral. For the first quarter, Neurocrine Biosciences had an EPS of $0.82, compared to year-ago quarter EPS of ($1.12). The stock has a 52-week-high of $131.00 and a 52-week-low of $72.14. Neurocrine Biosciences's stock last closed at $130.36 per share. * BMO Capital changed the rating for Pilgrims Pride Corp (NASDAQ: PPC) from Outperform to Market Perform. In the first quarter, Pilgrims Pride showed an EPS of $0.18, compared to $0.35 from the year-ago quarter. The stock has a 52-week-high of $33.67 and a 52-week-low of $15.75. Pilgrims Pride's stock last closed at $16.69 per share. * Guggenheim downgraded the stock for Spotify Technology SA (NYSE: SPOT) from Neutral to Sell. In the first quarter, Spotify Technology showed an EPS of ($0.22), compared to ($0.90) from the year-ago quarter. The stock has a 52-week-high of $271.71 and a 52-week-low of $109.18. Spotify Technology's stock last closed at $265.05 per share. * HC Wainwright & Co. downgraded the stock for Inovio Pharmaceuticals Inc (NASDAQ: INO) from Buy to Neutral. For the first quarter, Inovio Pharmaceuticals had an EPS of ($0.26), compared to year-ago quarter EPS of ($0.30). The stock has a 52-week-high of $33.79 and a 52-week-low of $1.92. Inovio Pharmaceuticals's stock last closed at $29.98 per share. Initiations * Piper Sandler initiated coverage on Leap Therapeutics Inc (NASDAQ: LPTX) with an Overweight rating. The price target for Leap Therapeutics is set at $6.00. For the first quarter, Leap Therapeutics had an EPS of ($0.55), compared to year-ago quarter EPS of ($0.47). The stock has a 52-week-high of $3.18 and a 52-week-low of $0.57. Leap Therapeutics's stock last closed at $2.19 per share. * Jefferies initiated coverage on Madison Square Garden Entertainment Corp (NYSE: MSGE) with a Buy rating. The price target for Madison Square Garden is set at $100.00. The stock has a 52-week-high of $87.20 and a 52-week-low of $62.50. Madison Square Garden's stock last closed at $72.65 per share. * HSBC initiated coverage on Otis Worldwide Corp (NYSE: OTIS) with a Reduce rating. The price target for Otis Worldwide is set at $44.00. The stock has a 52-week-high of $61.46 and a 52-week-low of $41.26. Otis Worldwide's stock last closed at $55.82 per share. * Cowen & Co. initiated coverage on Pliant Therapeutics Inc (NASDAQ: PLRX) with an Outperform rating. The stock has a 52-week-high of $31.99 and a 52-week-low of $21.05. Pliant Therapeutics's stock last closed at $31.72 per share. * JP Morgan initiated coverage on Warner Music Group Corp (NASDAQ: WMG) with an Overweight rating. The price target for Warner Music Group is set at $40.00. The stock has a 52-week-high of $34.76 and a 52-week-low of $26.99. Warner Music Group's stock last closed at $30.47 per share. * With a rating of Sector Perform, RBC Capital initiated coverage on ZoomInfo Technologies Inc (NASDAQ: ZI). The price target is set at $50.00 for ZoomInfo Technologies. The stock has a 52-week-high of $64.40 and a 52-week-low of $32.10. ZoomInfo Technologies's stock last closed at $51.57 per share. * B of A Securities initiated coverage on ZoomInfo Technologies Inc (NASDAQ: ZI) with a Buy rating. The price target for ZoomInfo Technologies is set at $60.00. The stock has a 52-week-high of $64.40 and a 52-week-low of $32.10. ZoomInfo Technologies's stock last closed at $51.57 per share. * Evercore ISI Group initiated coverage on Warner Music Group Corp (NASDAQ: WMG) with an Outperform rating. The price target for Warner Music Group is set at $36.00. The stock has a 52-week-high of $34.76 and a 52-week-low of $26.99. Warner Music Group's stock last closed at $30.47 per share. * SVB Leerink initiated coverage on Nuance Communications Inc (NASDAQ: NUAN) with an Outperform rating. The price target for Nuance Communications is set at $31.00. For the second quarter, Nuance Communications had an EPS of $0.21, compared to year-ago quarter EPS of $0.20. The stock has a 52-week-high of $26.01 and a 52-week-low of $13.51. Nuance Communications's stock last closed at $25.39 per share. * HC Wainwright & Co. initiated coverage on Arena Pharmaceuticals Inc (NASDAQ: ARNA) with a Buy rating. The price target for Arena Pharmaceuticals is set at $90.00. In the first quarter, Arena Pharmaceuticals showed an EPS of ($2.00), compared to $12.34 from the year-ago quarter. The stock has a 52-week-high of $69.75 and a 52-week-low of $32.95. Arena Pharmaceuticals's stock last closed at $65.92 per share. * Needham initiated coverage on Enphase Energy Inc (NASDAQ: ENPH) with a Buy rating. The price target for Enphase Energy is set at $53.00. In the first quarter, Enphase Energy showed an EPS of $0.38, compared to $0.08 from the year-ago quarter. The stock has a 52-week-high of $70.36 and a 52-week-low of $16.32. Enphase Energy's stock last closed at $45.30 per share.See more from Benzinga * 11 Communication Services Stocks Moving In Monday's Pre-Market Session * 5 Basic Materials Stocks Moving In Monday's Pre-Market Session * 16 Industrials Stocks Moving In Monday's Pre-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A proposed change to direct listings could attract more public debuts and woo companies away from traditional IPOs — if the SEC approves the move.
IPO Edge hosted virtual IPO Summit to discuss a number of timely topics ranging from corporate governance to the upcoming election season that issuers may need to consider. A replay of the approximately 90-minute event will be can be accessed here. The webcast, hosted in partnership with Sidley Austin LLP, MorganFranklin Consulting, Nasdaq, ICR, and The Palm Beach Hedge Fund Association, included […]
Virtual Event Participants include Sidley Austin LLP, MorganFranklin Consulting, Nasdaq, and ICR As the capital markets gradually recover and companies begin planning for initial public offerings, IPO Edge will host a virtual IPO Summit to discuss a number of timely topics to help corporate issuers prepare. The approximately 90-minute event will be on Thursday, June […]
David Ethridge, US IPO Services Leader at PwC, joined Yahoo Finance's The Final Round to discuss the 2020 IPO market and his outlook for IPO's through the end of the year.
(Bloomberg) -- Graphic design software business Canva Inc. has raised private capital valuing the company at $6 billion.The fresh round of $60 million in funding nearly doubles last year’s $3.2 billion valuation, and makes the Sydney-based startup the most valuable private technology business in Australia. The round was led by Blackbird Ventures and Sequoia China, with participation from existing backers including General Catalyst Partners, Felicis Ventures and Bond, Chief Operating Officer Cliff Obrecht said in an interview.Canva was co-founded by Chief Executive Officer Melanie Perkins, Obrecht and Cameron Adams in 2012 and launched the following year. Its website and apps help people and companies create banners, logos, social media graphics and presentations.Canva operates what’s known as a freemium model, with some options available for free and others available for a fee. It also has a growing enterprise business, working with companies like Hubspot Inc., Warner Music Group Corp., Skyscanner Ltd. and American Airlines Group Inc. It now has more than 1.5 million paying subscribers, Obrecht said.Canva plans to use the new capital to expand features that allow users to collaborate on work in real time. It previously raised over $250 million in funding, according to PitchBook Data.“Now you can have hundreds of people working at the same time,” Obrecht said. One of key features Canva rolled out during the Covid-19 pandemic is a brainstorming feature. “It kind of replaces everyone standing around a whiteboard and putting sticky notes to come up with an idea,” he said. “We’ve done a digital version of that. The simultaneous collaboration feature is taking off.”Canva, which has more than 30 million monthly active users, acquired free content sites Pexels and Pixabay last year, adding more than 1 million stock photos, vectors and illustrations on to its platform, its website shows.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
At the start of the novel coronavirus outbreak in the U.S., the automotive industry appeared to be on the verge of collapse. First, with very few people driving, the need for personal transportation diminished greatly. As well, the mass-scale transition to remote work made cars temporarily irrelevant. Thus, if you had to guess, you might assume that Vroom (NASDAQ:VRM) and more specifically, Vroom stock, was headed toward disaster.Source: Lori Butcher / Shutterstock.com However, you would be wrong. Right at the time that the online car retailer had its initial public offering, key economic metrics began improving substantially. Primarily, the May jobs report saw the economy unexpectedly add 2.5 million jobs, quickly repudiating doom and gloom forecasts. Recently, the Commerce Department provided a positive shock to the financial system, revealing that May retail sales jumped nearly 18%.Clearly, investors were in the mood for some technology-based risks. Vroom stock had an IPO price of $22. On the first day of trading, VRM more than doubled, with the company raising $495 million from its offering.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, on a broader level, Vroom stock demonstrated that the IPO market was back in full swing. Earlier, Warner Music Group (NASDAQ:WMG) exploded higher as sentiment on Wall Street took on a decisively bullish tone.However, VRM stock has enjoyed a much bigger overall pop than WMG so far. Very likely, that has to do with the used car market's surprisingly resilience. After falling to worrying levels in April, the Manheim Used Vehicle Value Index skyrocketed in mid-June. If the index holds for the rest of the month, it will reach an all-time high. * 10 Robotics Stocks on the Technological Cutting Edge Thus, Vroom is entering the arena at the right time … or so it seems. Awkward Timing Is a Question Mark for Vroom StockPrincipally, Vroom and rival Carvana (NYSE:CVNA) operate under the convenience and time-value narrative. Unlike shopping for cars the "analog" way, you can handle all the sometimes mountainous paperwork and processes from the comfort of your own home.Best of all for non-confrontational millennials, they don't have to deal with rejections and doing the rejecting. You have the ability to conform to the math that works for you without pressure from salespeople. If you think about it, Vroom is a win-win in this department: you don't have to play the "I've got to talk to my wife/husband/partner" game, and the salesperson doesn't have to keep talking to the Wizard of Oz.But where Vroom stock might fall short is that the convenience narrative has fallen apart, at least for now. Again, Vroom and Carvana save you time, not just from paperwork but also the car buying process. In addition, they can deliver your purchased vehicle to you, minimizing your physical effort.But in exchange for that convenience and for your time saved, VRM charges you a premium. Of course, that's the potential profitability angle for Vroom stock. In the pre-pandemic era, this made sense. When you consider the collective time spent at work - i.e. commuting and the hours at the office - Americans are increasingly tethered to the cubicle for longer than before.Thus, Vroom and Carvana makes sense, especially if you have a high hourly wage. But because of the transition to remote work, many white-collar workers have much more time on their hands. In this situation, it's more economically palatable to go analog, haggle a little and get a much better deal.Plus, some consumers aren't comfortable making a big purchase online. Don't Ignore Profitability ConcernsIf you think I'm being negative on Vroom stock, I'm not. It's an interesting concept and it represents the future of auto purchases. However, the timing again is awkward. Also, it must compete with Carvana, which has greater brand recognition due to its first-to-market advantage.In addition, both Vroom and Carvana have profitability challenges. In this situation, VRM has a credibility issue to overcome. As you may know, selling a car is just one way for dealers to make their money. But through add-on services, particularly arranging car loans, dealers can significantly bolster their bottom line.But neither Vroom nor Carvana force you to finance through them. That's fine for now. But should the positive economic numbers turn out to be temporary affairs, online auto dealers may have to rethink their business.As I said, Carvana's brand advantage should give them an edge in this digitalized space. This isn't to say that Vroom doesn't have a chance. But to be fair, it has more obstacles in the way.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Vroom Is a Relevant Business Operating in an Awkward Time appeared first on InvestorPlace.
U.S. IPO and Software Leader at Deloitte & Touche Previn Waas joins Yahoo Finance’s Zack Guzman to reflect on the past decade of IPO activity and give his outlook on potential public offerings within the second half of 2020.
Warner Music Group Corp. (“Warner Music Group” or “WMG”) announced today that its wholly-owned subsidiary, WMG Acquisition Corp. (the “Company”), has priced €325 million aggregate principal amount of 2.750% senior secured notes due 2028 (the “Notes”). The Notes are being offered only to qualified institutional buyers pursuant to Rule 144A and to certain persons outside the United States pursuant to Regulation S, each under the Securities Act.
Warner Music Group Corp. (“Warner Music Group” or “WMG”) announced today that its wholly-owned subsidiary, WMG Acquisition Corp. (the “Company”), has priced $535,000,000 aggregate principal amount of 3.875% senior secured notes due 2030 (the “Notes”). The Company intends to use the net proceeds of the offering, together with the net proceeds from the potential offering of euro-denominated notes and cash on hand, to fund (i) the purchase price of any and all of the Company’s outstanding 5.000% senior secured notes due 2023 tendered and accepted by the Company in its previously announced tender offer and consent solicitation that commenced on June 16, 2020, (ii) the conditional redemption of any remaining 5.000% senior secured notes due 2023 expected to be called for redemption on or after August 1, 2020 and (iii) the conditional redemption of all of the Company’s outstanding 4.875% senior secured notes due 2024 and 4.125% senior secured notes due 2024 which have been called for redemption on June 30, 2020.
Nelson Griggs, President of the Nasdaq, joined Yahoo Finance's The Final Round to discuss the recent IPO's on the Nasdaq this year and his outlook for the market.
The number of confirmed cases of the coronavirus illness COVID-19 globally climbed above 8 million on Tuesday, and the number of infections continued to rise in many parts of the U.S. even as officials continued their push to reopen and end lockdowns.
Warner Music Group Corp. (“Warner Music Group” or “WMG”) today announced that through its wholly owned subsidiary WMG Acquisition Corp. (the “Company”) it has commenced a private offering (the “Secured Notes Offering”) of senior secured notes (the “New Notes”). The New Notes will be offered in a private offering exempt from the registration requirements of the United States Securities Act of 1933, as amended (the “Securities Act”). The New Notes will be offered only to qualified institutional buyers pursuant to Rule 144A and to certain persons outside the United States pursuant to Regulation S, each under the Securities Act.
Royalty Pharma Plc priced its initial public offering late Monday at $28 a share, the top end of its price range, and upsized the deal, suggesting strong demand from investors. The company sold 77.7 million shares to raise $2.2 billion, making it the biggest IPO of the year to date, ahead of Warner Music Group Corp.'s recent deal, that raised $1.9 billion. The shares will start trading later Tuesday on Nasdaq, under the ticker symbol "RPRX." "Royalty Pharma is highly profitable and generates strong cash flow, and it intends to pay a dividend with 2.3% yield at the midpoint," said Renaissance Capital, a provider of institutional research and IPO ETFs, in commentary.There are 13 banks underwriting the deal, led by J.P. Morgan. "Since our founding in 1996, we have been pioneers in the royalty market, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies," the company says in its IPO documents. Royalty Pharma has built a portfolio of royalties by co-funding late-stage clinical trials in return for future royalties, and by acquiring existing royalties from the original developers of drugs. The portfolio includes such drugs as Tysabri, an immunosuppressive drug that is used to treat multiple sclerosis and Crohn's disease, and Imbruvica, a small molecule drug used to treat B cell cancers such as mantle cell lymphoma.
Companies in need of cash are rushing to take advantage of an opportunity to raise money through equity markets while they still can.
Since late last month, corporate CEOs have denounced racism and some even showed support for the Black Lives Matter movement. Now, companies are pledging to spend millions of dollars, either for minority-focused investments or for donations to nonprofit organizations. --Alphabet (GOOG) unveiled a $12 million plan with $1 million each to the Center for Policing Equity and the Equal Justice Initiative.
On Tuesday, (VRM) (ticker: VRM), the online car-buying platform, went public for $22 a share. It was a triumphant end to a six-month streak without a single IPO from a venture-backed tech company. The Vroom IPO followed successful offerings from private-equity backed companies, including (SLQT) (SLQT); (WMG)(WMG), (ZI) (ZI), a cloud database provider; and (FOUR)(FOUR).
(Bloomberg) -- Tencent Holdings Ltd., China’s largest social media company, acquired a 10.4% stake in the Class A shares of Warner Music Group Corp., a bet on the industry’s long-term growth prospects following the U.S. music label’s $1.9 billion initial public offering last week.Tencent purchased 8 million Class A Warner Music shares, according to a regulatory filing Friday. The U.S. music group is controlled by billionaire Len Blavatnik through his ownership of Class B stock with supervoting rights. Including all of the classes of stock, the company holds a 1.6% stake.At current prices, Tencent’s investment is worth more than $246 million. That represents a quick gain from the initial price of $25 a share that Warner Music fetched last week in its IPO. The company is the only separately traded major U.S. label. The largest, Universal Music Group, is owned by Vivendi SA, followed by Sony Corp.’s Sony Music Entertainment.The industry is enjoying a long-running financial renaissance thanks to the popularity of streaming services like Spotify Technology SA and Apple Inc.’s Apple Music. Warner Music’s sales grew 12% last year.Shares of Warner Music rose 2.6% to $30.77 in New York. They have gained 23% from the offering price.(Updates Tencent holdings in second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
When the novel coronavirus first devastated the U.S. markets, few people were thinking about initial public offerings. With almost every sector of the economy taking a devastating blow, few had the appetite for rapidly eroding equities. But as the worst of the crisis appears to have faded, sentiment came back. This was on display for Warner Music Group (NASDAQ:WMG), which saw its IPO initially send Warner Music Group stock heading toward the clouds.Source: David Tonelson / Shutterstock.com At time of writing, though, the early momentum has taken a backseat. On Thursday, we saw the latest read of initial weekly jobless claims, which came in at 1.5 million. While some of this tally comes from the massive backlog of unemployment benefits filings from weeks ago, that the total remains stubbornly high suggests that the economic carnage is spreading to multiple job categories.Of course, as a consumer-levered entity, this report didn't favor Warner Music Group stock, sending shares tumbling along with the major indices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNevertheless, a case exists for buying WMG. First, the initial enthusiasm for Warner's IPO was a sign that Wall Street is ready to wheel and deal. More specific to Warner Music, CEO Steve Cooper stated that "The valuation reflects the growing awareness of the value of content. Oftentimes the spotlight is on tech, but tech in many forms utilizes music."Moreover, Goldman Sachs predicted that recorded-music revenue will reach $75 billion in 2030, Considering that WMG's revenue for 2019 was $4.48 billion, this forecast implies a long upside pathway for Warner Music Group stock. Therefore, it's natural that many investors want to get in early. * 7 Great Biotech Stocks to Buy and Hold Now Still, should you take a bet on the music industry? Warner Music Group Stock Has Coronavirus Headwinds, Not CatalystsOn the surface, what might initially attract contrarians to Warner Music Group stock is the pandemic. Indeed, the very concept of forced quarantining suggests that streaming entertainment specialists should enjoy substantial upside.That's not my theoretical musing. Rather, you only have to look at the dramatic rise of Netflix (NASDAQ:NFLX) to understand this seemingly counter-intuitive argument. During the peak of the crisis, non-essential workers had every incentive to stay home, especially if they were working remotely or were protected by unemployment insurance.Logically, this leads to boredom. With Netflix offering cheap contactless entertainment, it quickly garnered new subscribers. As well, revenue shot up nearly 28% year-over-year in the quarter ending March 31, 2020.However, Warner Music didn't see such a lift. In fact, revenue declined 1.7% in the first quarter of 2020, or flat in constant currency. So, what happened?As Quartz noted, the coronavirus may have actually hurt music streaming. I'm not sure what its reasoning is since this article is exclusive to Quartz members. However, I have my own theories as to why the pandemic isn't as favorable to Warner Music Group stock as it might be for other entertainment-based investments.Primarily, the outside factors that incentivize music streaming or downloads don't currently operate to their pre-pandemic levels. For example, you may stream music to pump you up during your gym workout sessions. But with the risk of infection, you might be thinking of cancelling your gym membership.Also, long-haul flights are probably out of the question for many people, given the sharp drop in airline passenger volume.Second, at-home alternatives exist for music. You can easily watch music videos or concert clips of your favorite artists through YouTube. However, you can't easily subvert visual content providers like Netflix. Economic Backdrop Is Unfavorable to Music StreamingThe reduced platform for streaming music also applies to mundane endeavors. For instance, many folks love to plug their smart device into their cars and listen to their favorite tunes. Unfortunately, this is a double negative today: fewer people are driving, and the old-fashioned radio provides a less convenient but free alternative.And this dynamic ties into the economic headwind weighing on Warner Music Group stock. With millions of households looking to cut their budget in any way possible, music streaming is an easy one to ax.Now you might scoff at the notion. After all, music streaming is so cheap. But the problem again is that free alternatives exist. Most certainly, the free platform is inferior to streaming directly from the source. However, during a severe and unprecedented recession, you'll take whatever discounts you can get.Over the long run, I do find Warner Music Group stock intriguing. The underlying company and the broader music industry has been able to bounce back from crippling dilemmas such as pirating. Once the good times return, WMG should start rocking again.But for now, we're in a heavily mitigated environment. Therefore, I expect further volatility before WMG becomes legitimately attractive.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Warner Music Group Is Done Playing the IPO Hero Role appeared first on InvestorPlace.
The 2020 IPO class has been impacted by the coronvirus, resulting in some companies becoming under-performers and others becoming out-performers. RapidRatings CEO James Gellert joins The Final Round panel to discuss 2020’s IPO class.
Mortgage lender Quicken Loans is planning an initial public offering, according to a CNBC report Thursday that cited people familiar with the matter. An IPO prospectus was filed confidentially, and could become public as early as next month, the report said. Quicken Loans is working with Morgan Stanley, Goldman Sachs, Credit Suisse and JPMorgan to manage the deal, and a target valuation is still being discussed, the report said. An IPO for Quicken could eclipse Warner Music Group Corp.'s IPO last week, in which the music company raised $1.925 billion. The IPO market has had a resurgence in recent weeks, with Warner as well as Vroom Inc.'s IPO earlier this week and Azek Co.'s IPO, expected to price later Thursday.