Most traded stocks of the week

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Josh Warner
By :  ,  Market Analyst

What are the most traded stocks of the week?

Below is a list of the 20 most traded stocks among StoneX Retail clients during the five trading sessions to the end of play on Thursday August 11. Exchange-Traded Funds (ETFs) have been excluded.

1

Tesla

11

Apple

2

Meta

12

Amazon

3

NVIDIA

13

Exxon Mobil

4

AMC Entertainment

14

Roblox

5

Repligen Corp

15

Advanced Micro Devices

6

Bank of America

16

SVB Financial

7

Ally Financial

17

Avalara

8

Rolls Royce

18

Netflix

9

DBS Group

19

Suncorp Group

10

Alphabet

20

Standard Chartered

 

Tesla has remained the most popular stock, with markets focused on news that CEO Elon Musk sold $6.9 billion worth of shares in the electric vehicle maker last week. He said this was to raise money in case he is ordered to buy Twitter as he prepares for a legal showdown this October. He tweeted that he thought it was ‘hopefully unlikely’ that he will be forced to buy the platform but said he decided to sell now to prevent any fire-sale in the future and to provide a backup should any equity partners back out. Bloomberg calculations show Musk has now sold around $32 billion worth of Tesla shares in the last 10 months alone, but he remains the largest shareholder with a 14.6% stake.

Big Tech stocks have risen in the back-half of this week as the latest inflation data out of the US suggested it may have reached its peak after slowing down in July.

Apple shares gained ground on news out from Asia. Reports from Reuters this morning suggests the company has asked suppliers to produce at least as many of its next-generation iPhone as they did in 2021 to signal that it believes demand for mid-to-high range smartphones will hold up despite the tough economic environment. It is aiming to make at least 90 million units of its new iPhone and is still on course to assemble around 220 million iPhones in total in 2022. That follows on from results out from its largest assembly partner, Foxconn, which said it this week that it expects the semiconductor shortage to ease in the second half and that revenue from its consumer electronics business will be broadly flat in the third quarter.

Meanwhile, Alphabet is set to be probed by regulators in South Korea over irregularities over in-app billing, alongside Apple. A separate investigation into Alphabet conducted by regulators in Australia also gave the green light for Google’s acquisition of Mandiant after concluding that the two are not direct competitors in the cybersecurity market. However, Alphabet was fined AUD60 million in Australia for making misleading representations to consumers about how it collects and uses personal location data on Android phones.

Notably, BofA Global Research this week removed Alphabet from its US 1 List, which outlines its ‘best investment ideas’ for undervalued stocks, and added social media platform Meta. The social media company also raised $10 billion in its first-ever bond offering as it looks to build a more traditional balance sheet to help fund its costly metaverse ambitions.

Amazon announced this week that it will buy iRobot Corp, the company known for the robotic vacuum cleaner Roomba, in an all-cash deal worth around $1.7 billion as it continues to expand its array of in-home devices. The $66 per share price tag is at a 19% premium to closing price before the offer was made.

Netflix shares have been back in play after losing its crown as the market-leader in streaming. Disney released results this week that showed it now has more streaming subscribers across its Disney+, EPSN+ and Hulu services than Netflix. It said it had 221.1 million subscribers across the three services, surpassing the 220.7 million that Netflix reported at the end of June. Disney is now gaining market share and delivering impressive growth at a time when Netflix is struggling after it started to lose subscribers for the first time in over a decade in 2022, sparking fears that it has already reached its peak. You can read more in Disney vs Netflix: Who is Winning the Streaming War?

 

Roblox’s latest results revealed bookings and earnings missed expectations as it lost far more users than anticipated in the second quarter, becoming the latest company to signal a slowdown in the gaming market. That initially prompted a selloff in the stock, but it quickly recovered as the focus turned to its update for July, when its performance improved. A number of brokers tweaked their view on the company this week and they now believe Roblox is worth around $44 per share, implying it is around 11% overvalued at present.

NVIDIA is another company feeling the pressure from a slowdown in gaming after the chipmaker warned sales in 2022 will fall far short of its original target, coming in closer to $6.7 billion compared to its original outlook of $8.1 billion. That will be down 19% from the first quarter but still some 3% above the figure reported last year. That followed on from disappointing sales figures out from the likes of Electronic Arts, Take-Two Interactive and Activision Blizzard in recent weeks. The warnings out from the semiconductor industry has also increased the volatility in AMD shares this week.

Exxon Mobil has been under the spotlight after Nigerian president Muhammamdu Buhari made a surprise U-turn on his authorisation on the company’s plan to sell $1.3 billion worth of shallow water assets to Seplat Energy. The president, who also acts as oil minister, approved the deal before siding with regulators that had blocked the transaction. Seplat said it ‘has received no official notification’ that the president’s approval had been rescinded. Bloomberg also reported ExxonMobil is actively trying to expand its trading operations as elevated and volatile energy prices provide bumper profits this year.

Retail traders have flocked back to meme stocks and AMC Entertainment has been the most popular. The cinema chain operator recently unveiled plans to pay a special dividend in the form of preferred shares that will have their own listing on the NYSE under the ticker ‘APE’. Investors were initially nervous this could lead to dilution in the future but have warmed to the idea after CEO Adam Aron allayed these concerns. You can find out more by reading APE Dividend: is it an AMC Stock Split?

 

Repligen Corp is a new entry this week after media reports suggested the biotech firm rejected an unsolicited takeover bid from Catalent. StreetInsider said Repligen has hired advisors after deeming the offer as too low, and Catalent is preparing to improve its offer. However, the price tag being considered is not yet known.

Software firm Avalara is another new entry after agreeing to be bought out by private equity firm Vista Equity Partners for $8.4 billion including debt in a cash deal worth $93.50 per share. That is at a 27% premium to where the Avalara share price sat before reports of the offer started to surface in early July. Vista said it was attracted to Avalara because it offers mission-critical services to a wide range of sectors including retail, manufacturing and hospitality.

Australian insurance and banking firm Suncorp Group released results this week that showed earnings experienced a 37% drop in the recently ended financial year as natural disasters continue to cause trouble for insurers. Suncorp said it was raising the amount of money set aside for potential disasters to AUD1.16 billion for the new financial year from the AUD860 million set aside in 2022. Earnings of AUD673 million in the year to the end of June dropped from AUD1.06 billion the year before. That saw its dividend slashed to just AUD0.17 from AUD0.40. Citigroup warned it expects capital erosion and higher allowances will remain a drag going forward and said low quality earnings from its banking arm increases concerns about the dilutive impact of its deal to sell its banking arm to Australia & New Zealand Bank.

Bank of America and other US banks have also climbed higher on the better than anticipated inflation data, improving sentiment about a bleak economic outlook and raising hopes that this will reduce the urgency for the Federal Reserve to undertake aggressive interest rate hikes.

SVB Financial, also known as Silicon Valley Bank, was another benefiting from hopes of cooling inflation. That has allowed it to recover some of the losses booked since last month, when it cut its 2022 expectations and posted results that missed expectations. Brokers have been busy adjusting their target on the stock in recent weeks and the 24 that cover the stock see 13% potential upside from current levels with an average target price of $514.

Ally Financial, the financial services firm providing everything from car insurance to mortgage loans, has also been on the rise.

Meanwhile, Singaporean bank DBS Group has also increased this week. The bank is considered to be a strong beneficiary as interest rate hikes in the US filter through to other markets. Bloomberg Intelligence said this week that capital management by DBS and other Singaporean banks will be a ‘key differentiator as rates climb’. Singaporean banks have outsized capital reserves that BI believes will dip in 2022 as they wield them to improve their return on equity.

Standard Chartered, the UK-listed bank focused on emerging markets, lost minor ground this week as markets digested its results released late last month, when it posted a jump in profits that beat expectations, raised its dividend and launched a new $500 million share buyback. Brokers have been tweaking their target price since the update and, on average, believe it is up to 26% undervalued with an average target price of 760p.

Rolls Royce has remained one of the most popular stocks in the UK this week. The stock has found higher ground this week but remains lower than before it released its first half results earlier this month, when underlying operating profits more than halved as large engines continue to be underutilised by airlines. The number of large engines under long-term service agreements flew 4.5 million hours in the first half, which was up 43% from the year before but equal to just 60% of pre-pandemic levels. Rolls Royce said the second half will be better and allow it to hit its goals in 2022, although engine flying hours are not expected to return to 2019-levels until 2024. Still, the challenging economic picture means brokers have trimmed their expectations going forward but they still see over 14% potential upside with an average target price at 97.80p.

 

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