When companies are considered cheap by insiders, management, in this case, applies some simple strategies to the underlying stock until investors regain confidence and optimistic outlook on the name. Thus, these same decisions help Wall Street analysts support the stock and perhaps boost their price targets accordingly.
This standard method offers higher dividends so that the returns appear higher and more attractive to the capital flow when compared to the stock price. There is one problem with this, though, as it is not the most efficient way to create value for shareholders, as dividends are then taxed twice and cut into the value of the enterprise because they essentially represent capital leaving the company.
Stock buybacks are a better way to boost investor confidence and create more value at the same time. When management buys back stock, it sends a message to markets and investors that the stock is considered cheap and is expected to rise soon. Knowing this, investors should realize that companies like… Etsy Company Nasdaq: Etsy, Kroger Company New York Stock Exchange: K.RAnd even Marathon Petroleum Company New York Stock Exchange: Monetary Policy Committee They are buying aggressively today.
How inflation and trade trends drive Etsy’s stock buyback strategy
Etsy today
(As of 09:45 AM ET)
- 52 week range
- $47.10
▼
$89.58
- P/E ratio
- 30.77
- Price target
- $63.17
Now that analysts at Morgan Stanley are bearish on the US dollar, some repercussions may follow. First, a weaker currency will give foreign buyers additional purchasing power but will also reduce the purchasing power of domestic consumers. This is where stocks like Etsy come into play, as they connect buyers and sellers globally.
Its size and global reach will be useful when consumers need foreign alternatives to find the products they need in an international trading environment that may be shifting due to currency fluctuations. That’s why management is going ahead with the reduction by approving a stock buyback program of just over $1 billion.
Etsy stock forecast today
$63.17
7.11% upHe catches
Based on 25 analyst ratings
| High expectations | $105.00 |
|---|---|
| Average expectations | $63.17 |
| Low expectations | $44.00 |
Etsy stock forecast details
Now that the stock is trading at 66% from its 52-week high, it makes sense that insiders would start to support a potential new direction to restore the company to its former glory. Although this is bullish, insiders aren’t the only ones ready to spread their bullish predictions for Etsy stock. Analysts at Truist Financial now have a $70 price target on Etsy stock and a buy rating as well.
To achieve these goals, the stock would have to see an upside of 19% from where it trades today and remain well below its 52-week high. Moreover, as of November 2024, institutional investors from Pacer Advisors have decided to boost their holdings in Etsy shares by 183.9% bringing their net position to a high of $331 million.
Why Kroger is buying back shares as defensive stocks regain their appeal
Kroger today
(As of 09:40 AM ET)
- 52 week range
- $44.07
▼
$63.59
- Dividend yield
- 2.06%
- P/E ratio
- 16.44
- Price target
- $64.31
Following the same domestic and global trading trend, supported by Morgan Stanley’s view on the dollar, investors can see how Kroger stock could become attractive in this environment. As part of the consumer staples sector, its defensive and non-cyclical nature can be of great value to portfolios.
This time, momentum is actually in the stock’s favor, as it trades at a 52-week high. However, that didn’t stop management from continuing to approve a $7.5 billion stock buyback program to give investors an idea of where it could be headed in the coming quarters. Wall Street analysts are aware of this fact as well, and they are not afraid to push for higher prices.
Kroger stock forecast today
$64.31
3.62% upModerate purchase
Based on 14 analyst ratings
| High expectations | $73.00 |
|---|---|
| Average expectations | $64.31 |
| Low expectations | $55.00 |
Kroger stock forecast details
Especially those at Wells Fargo, who as of December 2024 reiterated an Overweight rating on Kroger stock, this time with a price target of $73 per share. For these new valuations to prove true, the stock would have to rise as much as 18% from where it trades today, giving investors another double-digit upside option on this list.
Like Etsy, institutions saw enough reasons to start buying shares along with management.
State Street boosted its holdings of Kroger stock by 16% as of November 2024, to $1.9 billion, or a 4.6% ownership in the company, to give investors another optimistic metric to consider in their buy cases.
The new business activity is good for oil and Marathon Petroleum stock
Oil marathon today
Petroleum Marathon
(As of 09:46 AM ET)
- 52 week range
- $142.53
▼
$221.11
- Dividend yield
- 2.54%
- P/E ratio
- 11.37
- Price target
- $185.27
After contracting for 25 consecutive months Manufacturing PMI The dollar could see a sharp recovery if Morgan Stanley analysts are right about the dollar’s bearish outlook.
With exports stimulated by the lower dollar, production and transportation need to be boosted to meet these new orders.
All of this needs oil to happen, which may be the same view taken by Warren Buffett when he bought up to 29% of the company’s shares. Occidental Petroleum Company New York Stock Exchange: Oxy Or when Marathon Petroleum agreed to a stock buyback program worth up to $5 billion.
Marathon forecast for oil stocks today
$185.27
27.70% upModerate purchase
Based on 17 analyst ratings
| High expectations | $231.00 |
|---|---|
| Average expectations | $185.27 |
| Low expectations | $145.00 |
Details of Marathon forecasts for oil stocks
With oil prices remaining at $70 a barrel, energy stocks have become attractive buys.
But that’s why Marathon is one of the best buys in the industry.
Wall Street analysts now expect up to $7.48 in earnings per share (EPS) for the first quarter of 2025, a roughly ten-fold growth rate unseen elsewhere in the peer group.
From these forecasts, those at Wells Fargo felt confident enough to boost the stock to $186 per share, calling for a net upside of up to 30% from where the stock is trading today.
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