💰 The Legal Kind of Insider Trading

Plus, big news for Bill Ackman's Pershing Square

Pencils down, it’s time for lunch. Here’s what you missed this morning:

  • 🟩 | Market Snapshot: The S&P 500 rose to a fresh record high as investors go through Federal Reserve Chair Jerome Powell’s statements from this morning.

  • 🔍 | In focus: Sticking to the wait-and-see approach…Fed Chair Jerome Powell spoke to the Senate Banking Committee this morning, addressing Congress on monetary policy. Powell noted that recent inflation readings have shown modest progress, but greater confidence is required before cutting rates.

  • 🛣️ | Noteworthy: Bill Ackman’s Pershing Square has begun a roadshow for its initial public offering, which could be the largest fund of its kind in the US. Pershing Square plans to raise $25 billion from the offering with an IPO price of $50 per share.

  • 💰 | The Midday Trade: The Legal Kind of Insider Trading. Scroll down for more.

Plus, unlock the hidden perks of Amazon Prime and make the most of your membership – discover 10 benefits you didn't know about today!

TOGETHER WITH BRAD’S DEALS

There was a time when we had to jot down our shopping lists with pens and brave the crowded malls. Then Amazon came along like a shopping superhero. You're probably enjoying free shipping and exclusive shows, but there's more benefits you might not know about. Make the most of your membership with these 10 hidden perks.

STREET STATS

MORNING MOVERS

NVDA: Shares of Nvidia popped after KeyBanc Capital Markets increased the price target to $180 from the previous $130 (Investing.com)

CC: UBS upgraded chemical company Chemours from Neutral to Buy, believing refrigerants will see favorable demand into next year (MB)

BP: Shares of BP tumbled after the firm announced it expects a $2 billion impairment in Q2 and that upstream production will be “broadly flat” (CNBC)

HELE: Hydro Flask's parent company, Helen of Troy, saw its stock nose dive after a massive earnings miss with EPS of 99 cents compared to an expected $1.59 (YF)

TEM: Shares of healthcare diagnostic company Tempus AI fell despite Wall Street banks initiating coverage on the stock with buy or overweight ratings (CNBC)

TOP CALLS

Twist Bioscience: Goldman Sachs Maintains Buy on Twist Bioscience, Raises Price Target to $55 (Trade It)

Southern: Barclays Maintains Equal-Weight on Southern, Raises Price Target to $71 (Trade It)

Quanterix: Goldman Sachs Maintains Buy on Quanterix, Lowers Price Target to $24 (Trade It)

Edgewise Therapeutics: JP Morgan Maintains Overweight on Edgewise Therapeutics, Raises Price Target to $30 (Trade It)

Essex Property Trust: Evercore ISI Group Maintains In-Line on Essex Property Trust, Raises Price Target to $260 (Trade It)

Pinterest: Goldman Sachs Maintains Buy on Pinterest, Raises Price Target to $50 (Trade It)

THE MIDDAY TRADE

Watching the Executives

Analysts closely watch insider transactions, when key executives trade large amounts of their own company’s stock, as potential signals about the stock's future performance. 

Recently, Nvidia (NVDA) CEO Jensen Huang sold nearly $60 million of its stock. At the end of June, we saw Lam Research (LRCX) CEO Timothy Archer parted ways with around $31 million of its stock.

The Moves Were Pre-Planned

These trades were done under 10b5-1 trading plans, which create a pre-determined price and time for the sales to take place. June 28th, a date on which Huang and Archer both sold shares, was the final trading day of the first half of the year. 

Nvidia shares were up 150% over the first two quarters of 2024, while Lam Research jumped around 45% over the same period.

Other Examples

CEOs selling off their company stock is not an uncommon practice. In fact, it is quite common. 

Adobe Systems CEO Shantanu Narayan sold off 25,000 shares, collecting around $13.6 million. Consol Energy CEO James Brock received a $1.75 million windfall when he let go of 17,400 shares of its stock. 

Oftentimes, these trades are placed as part of an estate planning process, but analysts and investors alike still view them as potential signals for how much stock growth executives expect from their companies.

TOGETHER WITH BRAD’S DEALS

There was a time when we had to jot down our shopping lists with pens and brave the crowded malls. Then Amazon came along like a shopping superhero. You're probably enjoying free shipping and exclusive shows, but there's more benefits you might not know about. Make the most of your membership with these 10 hidden perks.

SURVEY THE STREET

The price of Bitcoin has tumbled roughly 18% over the past month. On Friday, it fell under $55,000 for the first time since February due to Mt. Gox payout fears.

However, there’s another significant source of selling pressure for the world’s largest cryptocurrency: the German government.

The German government owns $2 billion in cryptocurrency from seizing the funds of movie piracy site Movie2k, and it’s been dumping the asset.

In June, the nation’s government sold 900 bitcoins worth roughly $52 million. Last week, it sold 3,000 bitcoins worth ~$172 million. And, on Monday, it sold another $155 million worth of bitcoin.

Will the German Government Continue its Bitcoin Sell-Off Spree Through the Summer?

Login or Subscribe to participate in polls.

Plus, Yesterday’s Poll + Results:

🟩🟩🟩🟩🟩🟩 Yes ✅ 

🟨🟨🟨🟨🟨⬜️ No ❌ 

What did you think of today's edition?

Login or Subscribe to participate in polls.

Join the conversation

or to participate.