Wall Street’s Identity and Brand Crisis With Lyft and Uber

Choosing between Lyft Inc. (NASDAQ: LYFT) and Uber Technologies Inc. (NYSE: UBER) apparently is not quite the coin toss that some ride-hailing …

Choosing between Lyft Inc. (NASDAQ: LYFT) and Uber Technologies Inc. (NYSE: UBER) apparently is not quite the coin toss that some ride-hailing consumers might have guessed. At least that’s what Wall Street’s reaction was to each of their second-quarter earnings reports. Lyft shares rallied strong on Thursday in reaction to its earnings report the prior evening, and while Uber rallied with Lyft, it gave back its gains and then some on Friday after its report.

While the earnings summaries have been expanded for each, there are other issues to consider around new hot post-IPO companies. Wall Street’s analyst community is one such concern. Another is that these remain under their respective initial public offering prices.

Uber generated a $3.2 billion in revenues, but including $3.9 billion in expenses around its IPO and stock-based compensation, the ride-sharing service lost a whopping $5.2 billion in the quarter. Even backing out the items, Uber’s adjusted earnings per share (or losses) and revenues were not showing as much growth as the investing community was demanding. To put that loss in perspective, that’s more than twice the $2.26 billion loss that the U.S. Postal Service generated.

  • Raymond James reiterated Uber as Outperform and raised the target price to $54 from $50.
  • Morgan Stanley reiterated it as Overweight and raised the price target to $57 from $56.
  • Loop Capital reiterated its Buy rating and $54 target.
  • Evercore ISI reiterated its Outperform rating with a $60 target.
  • Canaccord Genuity reiterated the stock as a Buy with a $55 price target.
  • Citigroup and Susquehanna both maintained Neutral ratings on Uber, with Citi’s target at $45 and Susquehanna’s at $42.

Uber’s stock had been down more than $4.00 and under $39.00 earlier on Friday morning, but the shares closed down $2.93 (−6.82%) at $40.05 on Friday. Uber’s IPO price had been at $45.00 per share.

When Lyft reported earnings, it posted a net loss of $2.23 per share and $867.26 million in revenue. The Refinitiv consensus estimates called for a net loss of $1.58 per share and $809.27 million in revenue. The same period of last year had an $8.48 per share net loss and revenue of $504.91 million. During the quarter, active riders increased 41% year over year to 21.81 million, up from 15.45 million. Revenue per active rider was up 22% to $39.77 from $32.67.

  • Canaccord Genuity reiterated Lyft as Buy and raised its target price to $78 from $75.
  • Atlantic Equities upgraded the shares to Neutral from Underweight.
  • Wedbush Securities raised its rating to Outperform from Neutral and its target to $75 from $67.

Lyft shares had risen 3% to $62.10 on Thursday in reaction to its earnings, but its stock had also been up 2.7% ahead of earnings well. Lyft shares ended down nearly 5% at $59.12 in Friday’s trading. Lyft’s IPO price was at $72.00 per share.

All in all, there were not as many downgrades as one might have expected, and the Uber clouds pulled Lyft back down basically to where it was trading before its earnings beat. Sometimes Wall Street just can’t make up its mind on a collective basis.

By Jon C. Ogg

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Campbell & CO Investment Adviser LLC Purchases Shares of 12254 AtriCure Inc. (NASDAQ:ATRC)

Quantum Capital Management increased its holdings in shares of AtriCure by 0.7% during the 1st quarter. Quantum Capital Management now owns …

AtriCure logoCampbell & CO Investment Adviser LLC bought a new stake in AtriCure Inc. (NASDAQ:ATRC) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 12,254 shares of the medical device company’s stock, valued at approximately $366,000.

Other institutional investors have also recently bought and sold shares of the company. Macquarie Group Ltd. boosted its stake in shares of AtriCure by 1.0% during the 4th quarter. Macquarie Group Ltd. now owns 65,786 shares of the medical device company’s stock worth $2,013,000 after acquiring an additional 681 shares in the last quarter. Quantum Capital Management increased its holdings in shares of AtriCure by 0.7% during the 1st quarter. Quantum Capital Management now owns 127,035 shares of the medical device company’s stock worth $3,403,000 after buying an additional 845 shares during the last quarter. Bell Rock Capital LLC acquired a new stake in AtriCure in the 1st quarter valued at $26,000. Rhumbline Advisers increased its holdings in AtriCure by 3.4% in the 1st quarter. Rhumbline Advisers now owns 48,738 shares of the medical device company’s stock valued at $1,306,000 after purchasing an additional 1,594 shares in the last quarter. Finally, Legal & General Group Plc increased its holdings in AtriCure by 31.0% in the 4th quarter. Legal & General Group Plc now owns 6,958 shares of the medical device company’s stock valued at $213,000 after purchasing an additional 1,646 shares in the last quarter. 89.20% of the stock is owned by institutional investors and hedge funds.

Several brokerages have recently weighed in on ATRC. ValuEngine downgraded AtriCure from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, June 19th. JPMorgan Chase & Co. began coverage on shares of AtriCure in a research report on Friday, April 12th. They set an “overweight” rating and a $37.00 price target on the stock. Zacks Investment Research cut shares of AtriCure from a “buy” rating to a “hold” rating in a research report on Tuesday, July 23rd. BidaskClub raised shares of AtriCure from a “buy” rating to a “strong-buy” rating in a research report on Friday, July 26th. Finally, Northland Securities reissued a “buy” rating on shares of AtriCure in a report on Friday, April 26th. One research analyst has rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $37.20.

In other AtriCure news, SVP Justin J. Noznesky sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, June 17th. The shares were sold at an average price of $30.00, for a total value of $300,000.00. Following the completion of the sale, the senior vice president now owns 94,068 shares of the company’s stock, valued at $2,822,040. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Michael H. Carrel sold 25,000 shares of the stock in a transaction on Wednesday, July 10th. The shares were sold at an average price of $32.00, for a total transaction of $800,000.00. Following the completion of the sale, the chief executive officer now owns 661,103 shares of the company’s stock, valued at approximately $21,155,296. The disclosure for this sale can be found here. Insiders sold a total of 37,158 shares of company stock worth $1,169,102 in the last quarter. Insiders own 8.00% of the company’s stock.

Shares of NASDAQ:ATRC opened at $31.31 on Friday. The firm has a market cap of $1.18 billion, a price-to-earnings ratio of -33.31 and a beta of 0.24. AtriCure Inc. has a 12-month low of $26.11 and a 12-month high of $36.49. The company has a quick ratio of 3.10, a current ratio of 3.72 and a debt-to-equity ratio of 0.15. The firm’s fifty day moving average is $31.08.

AtriCure (NASDAQ:ATRC) last announced its earnings results on Tuesday, July 30th. The medical device company reported ($0.17) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.01. The firm had revenue of $58.90 million for the quarter, compared to the consensus estimate of $57.76 million. AtriCure had a negative net margin of 9.46% and a negative return on equity of 13.06%. The business’s quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter last year, the firm posted ($0.19) EPS. Sell-side analysts expect that AtriCure Inc. will post -0.78 earnings per share for the current year.

AtriCure Profile

AtriCure, Inc develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems to medical centers in the United States and internationally. The company offers Isolator Synergy and Isolator Synergy Access clamps for the treatment of persistent and long-standing persistent atrial fibrillation concomitant to other open-heart surgical procedures; EPi-Sense guided coagulation system used for the coagulation of tissue; and COBRA Fusion surgical ablation system to combine bipolar temperature-controlled radio frequency energy control with monopolar energy.

Further Reading: Google Finance Portfolio Workaround

Institutional Ownership by Quarter for AtriCure (NASDAQ:ATRC)

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Analysts say ‘risk-seeking’ investors should buy this Uber plunge following abysmal results

Uber shares are plunging after a dismal earnings report but Wall Street analysts are urging clients to not be scared and take a “risk” on the stock even …

Uber shares are plunging after a dismal earnings report but Wall Street analysts are urging clients to not be scared and take a “risk” on the stock even after the company fell short of estimates on nearly every major metric.

Just months after making its May stock market debut, the company reported a $5.2 billion loss for the second quarter and blamed stock-based compensation as well as IPO related expenses.

Shares of the ride hailing giant’s stock tanked and are down over 9% in early market trading

Most analysts admitted the stock was risky and not for the faint of heart.

“Given negative investor sentiment, the complicated nature of its financials and lack of profitability, we are not surprised to see shares reacting poorly to results,” Barclays analysts said in a note to clients.

“We think risk-seeking, opportunistic investors should take advantage of this move and any weakness into UBER’s lock-up expiration, because for those looking closely under the scorched-earth rubble, there are actually some positive things going on,” they said.

“While there are considerable risks in ownership across the space given the intense competition, regulatory issues, and operating pressures, we continue to believe the risk/reward in owning the leader in this space is favorable,” Goldman Sachs said.

But one analyst said that while Uber might be a special company, he warned not to expect much from shares anytime soon.

“While we continue to view UBER as a once-in-a-generation company with an opportunity to revolutionize transportation and logistics, we believe business complexity, lack of visibility into forward numbers, and a precarious competitive landscape are likely to keep shares range bound,” Susquehanna said.

Here’s what else major analysts are saying about Uber’s earnings report:

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Uber stock plunges after whopping $5.2B quarterly loss

Uber shares plunged 6.3 percent in late trading to $40.27, after the ride-hailing giant reported a disappointing quarter capped by a record $5.2 billion …

Uber shares plunged 6.3 percent in late trading to $40.27, after the ride-hailing giant reported a disappointing quarter capped by a record $5.2 billion loss.

Uber said it lost a whopping $5.2 billion, or $4.72 a share, in the second-quarter on revenue of $3.17 billion. Wall Street had been expecting a loss of $3.12 a share on revenue of $3.36 billion.

Investors sent the stock down in an after-hours selling spree that more than reversed the stock’s 8.2 percent gain during regular trading to close Thursday at $42.97 per share.

Analysts attributed the stock’s daytime run up to a halo effect caused by Lyft’s second-quarter report on Wednesday, which surprised Wall Street with higher-than-expected revenue and lower-than-expected losses.

Lyft also cheered investors of both companies by saying its price war with Uber was easing. The Uber rival’s stock climbed 5.8 percent over two days.

see also

Uber, which went public on May 9 at a price of $45 per share, blamed $3.9 billion of the quarter’s $5.2 billion loss on stock-based compensation costs. Those consisted of payouts to workers and shareholders after Uber’s IPO and were recorded as non-cash expenses on the company’s second-quarter statement.

Despite Wall Street panning the result, Uber CEO Dara Khosrowshahi insisted they were “strong“ in a conference call with analysts.

He said total trips in the quarter were up 35 percent, and gross bookings, or the amount Uber collects before paying drivers, advanced 37 percent.

The $12.19 billion in gross bookings produced by Uber’s core ride-hailing business beat estimates, but the $3.39 billion in gross bookings recorded for the newer Uber Eats delivery fell short.

Khosrowshahi said he doesn’t expect near-term profitability for Uber Eats because it’s in a high-growth business where competition “continues to attract a lot of capital.”

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Kinsale Capital Group Announces Pricing of Public Offering of Common Stock

In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 96,750 shares of common stock. Subject to …

RICHMOND, Va., Aug. 07, 2019 (GLOBE NEWSWIRE) — Kinsale Capital Group, Inc. (NASDAQ: KNSL) (“Kinsale” or the “Company”) today announced the pricing of its underwritten public offering of 645,000 shares of common stock at a price of $93.00 per share. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 96,750 shares of common stock. Subject to customary conditions, the offering is expected to close on August 12, 2019.

The Company expects to use the net proceeds from the offering of the shares for general corporate purposes, including to fund organic growth. The net proceeds to the Company from the offering of the shares are expected to be approximately $57.2 million after deducting underwriting discounts and commissions and estimated offering expenses, assuming no exercise of the underwriters’ option to purchase additional shares.

J.P. Morgan is acting as sole bookrunner for the offering. William Blair, RBC Capital Markets, SunTrust Robinson Humphrey, Dowling & Partners Securities LLC, CIBC Capital Markets and Strategas Research Partners are acting as co-managers for the offering.

The public offering was made pursuant to an automatically effective registration statement on Form S-3 that has been filed with the Securities and Exchange Commission (the “SEC”). A final prospectus supplement and accompanying base prospectus relating to and describing the final terms of the offering will be available on the SEC’s website located at www.sec.gov or may be obtained from J.P. Morgan Securities LLC: Attention Equity Syndicate Desk, 383 Madison Avenue, New York, New York 10179 or by fax at (212) 622-8358.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Kinsale Capital Group, Inc.

Kinsale Capital Group, Inc. is a specialty insurance group headquartered in Richmond, Virginia, focusing on the excess and surplus lines market.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “project,” “plan,” “estimate” or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: the anticipated use of net proceeds from the offering; inadequate loss reserves to cover the Company’s actual losses; adverse economic factors; inherent uncertainty of models resulting in actual losses that are materially different than the Company’s estimates; a decline in the Company’s financial strength rating; loss of one or more key executives; loss of a group of brokers that generate significant portions of the Company’s business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company’s investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company’s filings with the SEC. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Kinsale Capital Group, Inc.

Bryan Petrucelli

Senior Vice President, Chief Financial Officer and Treasurer

804-289-1272

ir@kinsalecapitalgroup.com

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