Dj Talis Biomedical Corp Com, Inst Holders, 3Q 2024 (Tlis)

Reuters

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Sector Update: Financial Stocks Higher Friday Afternoon

MT Newswires

StoneCo

+10.68%

Perella Weinberg Partners

-0.50%

JPMorgan

+1.55%

Financial stocks advanced in Friday afternoon trading with the NYSE Financial Index rising 0.8% and the Financial Select Sector SPDR Fund (XLF) gaining 1%.

The Philadelphia Housing Index climbed 1.5%, and the Real Estate Select Sector SPDR Fund (XLRE) rose 0.8%.

Bitcoin (BTC/USD) added 0.7% to $99,039, and the yield for 10-year US Treasuries shed 2 basis points to 4.41%.

In economic news, the November flash reading of manufacturing conditions from S&P Global increased to a four-month high at 48.8 from 48.5 in October, slightly lower than an expected reading of 48.9 in a survey compiled by Bloomberg.

The University of Michigan consumer sentiment index was revised downward to 71.8 for November from 73 in the preliminary estimate, compared with expectations for an upward revision to 73.9 in a survey compiled by Bloomberg.

In corporate news, StoneCo shares jumped 12%, a day after the company's board authorized the repurchase of up to 2 billion Brazilian reais ($343.9 million) in class A shares.

Perella Weinberg Partners' affiliated funds that are sub-advised by Innovatus Capital Partners are looking to sell Flagship Credit Acceptance, Bloomberg reported. Perella shares shed 0.5%.

JPMorgan is facing an investigation from the US Treasury Department over its relationship with hedge fund Ocean Leonid Investments which is said to have ties with Iranian oil trader Hossein Shamkhani, Bloomberg reported. JPMorgan shares rose 1.5%.

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Why Is SEI (SEIC) Up 7.7% Since Last Earnings Report?

Zacks

It has been about a month since the last earnings report for SEI Investments (SEIC). Shares have added about 7.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is SEI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

SEI Investments’ Q3 Earnings Beat as Revenues & AUM Rise

SEI Investments’ third-quarter 2024 earnings per share of $1.19 surpassed the Zacks Consensus Estimate of $1.07. The bottom line reflected a rise of 36.8% from the prior-year quarter. Results in the reported quarter included a one-time gain of 5 cents per share related to the sale of property located in New York and a large one-time performance fee from LSV of 3 cents per share.

Results benefited from higher revenues and an increase in the assets under management (AUM) balance. Higher expenses acted as a headwind.

Net income was $154.9 million, up 33.9% from the year-ago quarter's level. Our estimate for the metric was $136.5 million.

Revenues & AUM Improve, Expenses Rise

Total revenues were $537.4 million, up 12.7% year over year. The rise was driven by higher asset management, administration, and distribution fees as well as information processing and software servicing fees. Moreover, the top line surpassed the Zacks Consensus Estimate of $533.2 million.

Total expenses were $393.6 million, up 6.9% year over year. The increase was driven by all the components except consulting, outsourcing and professional fees, and depreciation. Our estimate for the metric was $393.7 million.

Operating income increased 32.6% year over year to $143.8 million. Our estimate for the metric was $132.3 million.

As of Sept. 30, 2024, AUM was $493.3 billion, reflecting a rise of 21.4% from the prior-year quarter's reported actuals. Client assets under administration (AUA) were $1.05 trillion, up 17.4% year over year. Client AUA did not include $8.5 billion related to Funds of Funds assets reported as of Sept. 30, 2024.

Share Repurchase Update

In the reported quarter, SEI Investments bought back 1.3 million shares for $85.8 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 5.87% due to these changes.

VGM Scores

At this time, SEI has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise SEI has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

SEI is part of the Zacks Financial - Investment Management industry. Over the past month, BlackRock Finance (BLK), a stock from the same industry, has gained 4.5%. The company reported its results for the quarter ended September 2024 more than a month ago.

BlackRock Finance reported revenues of $5.2 billion in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $11.46 for the same period compares with $10.91 a year ago.

BlackRock Finance is expected to post earnings of $11.55 per share for the current quarter, representing a year-over-year change of +19.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for BlackRock Finance. Also, the stock has a VGM Score of F.

Zacks Investment Research

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JPMorgan Selects These 2 Stocks as Must-Haves for 2025

TipRanks

JPMorgan

+1.55%

Xenon Pharmaceuticals

+3.39%

HA Sustainable Infrastructure

+1.47%

We’re only 6 weeks away from 2025, which means that it’s time to check in again with Wall Street’s investment banks and professional analysts – they’re selecting their ‘top pick’ stocks for the coming year. These are the choices that the experts believe will bring solid returns in the coming year, and investors should pay close attention.

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The ‘top picks’, the must-have stocks, can come from a wide range of sectors, depending on the analysts’ preferences. Some like industrials, others like biotech, others go for Big Tech, while some advise buying into venture capital. The common denominator is simple – the analysts all pick stocks that are primed for gains going forward.

Right now, the analysts at JPMorgan are taking the lead, highlighting their own must-haves for 2025. According to the latest data drawn from the TipRanks platform, two stocks they are highlighting boast ‘Strong Buy’ consensus ratings and solid upside potential; let’s give them a closer look, and add in the JPM commentaries, as well, to find out what makes them top picks.

HA Sustainable Infrastructure Capital, Inc. (HASI)

The first stock on our list is HA Sustainable Infrastructure, formerly known as Hannon Armstrong. This company’s name points toward its business: HA Sustainable is a finance company and asset manager focused on supporting the energy transition from fossil fuels to renewable power sources. In short, this company provides capital and financing resources for firms involved in clean or green energy.

This is a potentially high-growth field, as there are several pushes supporting an energy transition – social pressures, to reduce our modern society’s pollution footprint; business pressures, to ensure a reliable power supply as non-renewable sources grow scarce; even governmental pressures, as legislatures respond to the more grass-roots pressures and provide support for an energy transition. HASI, from its base in Annapolis, Maryland, is working to provide financial support in this field – and at the same time, to provide solid returns for its own investors.

The company has over 35 years’ experience in its field, and currently boasts an investment portfolio worth $6.3 billion. This is split among three key market segments: behind-the-meter, which includes energy efficiency, residential solar, and community solar projects, and makes up approximately 47% of the total portfolio; grid connected, which includes wind and solar power generation, along with large-scale power storage projects, and makes up some 40% of the portfolio; and fuels, transport, & nature, which includes renewable natural gas, fleet decarbonization projects, and ecological restoration initiatives, and adds up to about 13% of the portfolio. This breakdown only refers to the investment portfolio; in addition, HASI has total managed assets of $13.1 billion.

Of particular interest to return-minded investors, HASI has a long history of keeping a reliable dividend payment. The most recent declaration was on November 7, of 41.5 cents per common share for a January 10 payment. This payment annualizes to $1.66 per common share, and gives a forward yield of 5.9%.

We should note here that HASI shares fell sharply in the wake of the recent election. Trump’s victory, and the related anticipation of sharp policy differences from the previous administration, particularly in the area of climate policy, spooked investors on the subject of green energy investment. Shares in HASI are down by 20.5% since the election.

That said, JPM analyst Mark Strouse, writing several days after the vote, was clearly not worried about this stock when thinking of its prospects. He said, “We believe the company is largely tracking expectations and continue to see conservatism in the medium-term targets as project yields continue to trend higher and the company’s recent investment grade credit rating likely benefits spreads over time. Given the scale, diversification, and maturity of its portfolio, we highlight HASI as being relatively more insulated from potential policy changes under a new administration compared to the rest of our renewables coverage… HASI is a top pick within our coverage.”

Strouse goes on to rate this stock as Overweight (Buy), with a $42 price target that suggests a one-year upside potential of 50%. (To watch Strouse’s track record, click here.)

From the Street generally, this stock gets a Strong Buy consensus rating, based on 8 reviews that include 6 Buys and 2 Holds. The shares are priced at $28.05 and their $41.83 average target price implies a one-year gain of 49%. (See .)

Xenon Pharmaceuticals (XENE)

The second stock on our list, Xenon Pharmaceuticals, describes itself as a neuroscience-focused biopharma company. Xenon has made solid progress in the development of new therapeutic agents for the treatment of epilepsy, and its lead product, azetukalner, is currently undergoing multiple late-stage clinical trials in several seizure and mental-health applications.

Azetukalner is a Kv7 potassium channel opener, described by Xenon as both novel and potent. It was developed as a potential treatment for focal onset seizures (FOS) as well as primary generalized tonic-clonic seizures (PGTCS), and is also being tested as a treatment for major depression. While epilepsy and major depression are very different disorders, both frequently prove resistant to current treatments – leading to high unmet medical needs among patients.

On the clinical trial side, the company is highly optimistic about azetukalner on the FOS track. The X-TOLE trial series is proceeding with good results, and Xenon expects to release topline FOS data from the Phase 3 X-TOLE2 clinical trial by the second half of next year. In addition, on the major depressive disorder (MDD) track, Xenon has presented data from the Phase 2 study of azetukalner, and is preparing to initiate a Phase 3 trial, X-NOVA2, before the end of 2024. Backing up the array of clinical trials, Xenon also has several pre-clinical programs underway. These include the Nav1.7 sodium channel inhibitors under investigation as treatments for pain indications, and the Nav1.1 sodium channel openers being studied as a potential treatment for Dravet Syndrome.

All in all, Xenon is a biopharmaceutical company with multiple shots on goal lined up – and that has caught the attention of JPM analyst Tessa Romero. Covering this stock for JPM, Romero writes of it, “At a high-level, we have reason to believe that the stock will start to work again as we move towards 2025 which we expect to be a pivotal year for the company with XTOLE2 data anticipated for azetukalner in FOS that, if positive, could unlock the path to product approval and send shares towards the $60/sh level (our FOS deep dive here); we also expect increased visibility on the development pipeline in validated targets such as Nav1.7 and Nav1.1 that mgmt seemed particularly excited about in our conversation to be additional drivers for the stock… Remains a top pick heading into 2025.”

Along with choosing XENE as a top pick, Romero puts an Overweight (Buy) rating on the shares – and a $63 price target that indicates room for a 50% gain in the next 12 months. (To watch Romero’s track record, click here.)

The Street would concur – as is clear from the unanimously positive Strong Buy consensus rating, based on 8 recent analyst reviews. XENE shares are trading for $39.34, and their $56.88 average price target implies an upside of 44.5% on the one-year horizon. (See .)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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MicroStrategy’s Stock Dip vs. Coinbase’s Potential Rally

MarketBeat

Most of the stock market’s attention has been directed to cryptocurrency, the hottest and most popular niche of the technology sector today. The idea behind most decisions is that, as the price of Bitcoin keeps rallying near an all-time high of $100,000 per coin, most—if not all—of the names related to cryptocurrencies will rally along with Bitcoin. That’s the one flaw most investors are coming to realize today.

For better or for worse, there is a major divide in the cryptocurrency stock universe today, even after signs from the gold market gave way to a buy signal for Bitcoin and its verticals. Shares of MicroStrategy Inc. have plummeted by as much as 18.2% in a single day, shedding more than 25% of the company’s market capitalization in the process.

Beyond the MicroStrategy dip, there is one major discrepancy to give investors another way into a potential cryptocurrency-related rebound, this time in the middleman between Bitcoin supply and those looking to get a piece of the popularity and action. This is where shares of Coinbase Global Inc. come into play, as the stock declined by over 7.6% when Bitcoin traded at new all-time highs in the same day.

Why MicroStrategy Stock Is Falling: Challenges Behind Its Decline from Glory

There is justifiable merit behind the parabolic price action in MicroStrategy stock, as its CEO, Michael Saylor, made some smart moves with the company’s capital. Reinvesting any and all free cash flow, mostly into Bitcoin holdings, enriched the balance sheet when and if the price of Bitcoin took off, as it does today.

However, markets are worried that Saylor might become blinded to his hot hand, thinking that whatever happened in the past could continue in the future. The fear arises from the fact that MicroStrategy is continuing to dilute shareholders, this time by raising up to $3 billion to buy more Bitcoin.

This is where investors need to weigh the pros and cons of being diluted in exchange for gaining leverage into having more Bitcoin on the balance sheet. So far, this exchange has proven profitable, judging by the 705% rally the stock delivered over the past 12 months, even after this week’s sharp selloff.

One problem, however, might be that Saylor is raising all of this money to buy Bitcoin at its all-time highs, sort of like buying back stock when it trades at massive valuations; at some point, the returns just won’t make sense. And they don’t make sense for Wall Street analysts, as the consensus price target has fallen behind at $331.1 a share.

From where it trades today, MicroStrategy stock faces a potential downfall of 14.6%, considering the current targets, which might be too much risk for investors to bear.

Coinbase Operates in a League of Its Own: Wall Street’s Take on Its Unique Vertical

Unlike MicroStrategy, which bets on Bitcoin through its balance sheet, Coinbase's advantage is that it will do well no matter where the price of Bitcoin goes—or at least that may be the thinking behind Wall Street's price targets.

Whether Bitcoin is at an all-time high sand on the rise or coming into headwinds and potential selloffs, traders will be there to take advantage of this volatility. The trading activity will be a fee source for Coinbase moving forward. Leaning on this belief, those at Needham & Company decided to reiterate their "Buy" rating on Coinbase.

The surprise came from their price targets, though. Although they were previously at $290 a share, renewed market activity and attention around Bitcoin call for a valuation closer to $375 a share. Coinbase would need to rally by as much as 28% from where it trades today, not to mention a new 52-week high, to prove these new views right.

However, another tailwind is adding to Coinbase stock's potential upside, and this one is coming from a new potential role in the United States economy. News broke out stating that Coinbase's CEO Brian Armstrong is a potential candidate to oversee all things cryptocurrency in the United States for the new administration.

This appointment would give Coinbase access to the information and prowess it needs to become a power player in global financial markets if accepted and formalized. Investors can liken this situation to when the government calls on a big investment bank like Goldman Sachs Group Inc. to oversee and advise.

More than that, BlakcRock Inc. has already shown interest in Bitcoin by adding it to its asset management program and opening a new exchange-traded fund (ETF). This means that, as Bitcoin becomes more widely accepted by Wall Street, regulations and oversight would have to follow, and that's where Coinbase comes into play.

This is a completely different picture than the risks and volatility coming out of MicroStrategy stock right now, and that investors can take advantage of that distinction before the rest of the market realizes that it's there for the taking.

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