Diamonds and Dogs
Vroom vroom goes today's diamond. Hertz Global Holdings (HTZ) is seeing their shares rise on high volume today, up over 12% thanks to insider buying. The rental car company has seen their shares drop over 50% in the last six months as sales have sputtered and earnings estimates have come down. When a stock has dropped this much, you'd like to see insider buying to tell you the stock is cheap and that's exactly what's happening. The company CEO, John Tague bought $500M worth of stock, the CFO, Thomas Kennedy purchased $310M worth of stock and the CRO bought $497M worth of stock all in the last week. Management is making a statement. Now, we'll see if they're right.
Robin Hood is wearing red today and taking your money. Red Robin Gourmet Burgers (RRGB) dropped 18% to a new 52 week low following first quarter revenue that came in less than what people expected. Revenue did increase by 1.8% year-over-year to $402.1 million but missed analyst estimates for $415 million. Earnings of $1.27 a share did beat expectations of $1.11 a share which was expected, but then forward guidance was not great with flat to slightly negative comparable revenue growth and lower guest counts than anticipated. My kids can be included in the lower guest counts. They are no longer fans of Red Robin.
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