Friday’s Insider Activity: Major Buys at Hycroft, Sells at MP Materials

Investing.com -- Alx Oncology Holdings (NASDAQ:ALXO) stock jumped 12% in premarket trading Monday after the clinical-stage biotechnology company reported impressive results from a Phase 2 trial of its cancer treatment evorpacept.

The study showed that combining evorpacept with standard-of-care rituximab and lenalidomide (R2) generated complete responses in 92% of patients with untreated indolent non-Hodgkin lymphoma (iNHL). This compares favorably to the approximate 50% historical complete response rate for R2 alone.

The trial, presented at the American Society of Hematology Annual Meeting in Orlando, enrolled 24 previously untreated iNHL patients. All patients responded to the treatment, with 92% achieving complete responses and 8% partial responses. The one-year progression-free survival rate was 91%, while the one-year overall survival rate was 100%.

"We are excited to see the results of this Phase 2 study in frontline indolent non-Hodgkin lymphoma patients, where the addition of evorpacept added a meaningful benefit over the historical data for the standard-of-care regimen of rituximab and lenalidomide," said Jason Lettmann, Chief Executive Officer at ALX Oncology.

The company noted that the treatment combination was well-tolerated by patients. Researchers will continue to evaluate minimal residual disease eradication rates as longer-term follow-up data matures.

The study was conducted by Dr. Paolo Strati, Associate Professor of Lymphoma-Myeloma at The University of Texas MD Anderson Cancer Center, who pursued this frontline study after observing promising activity using the same combination in relapsed refractory settings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- HSBC upgraded Visa and Mastercard to Buy, saying both companies’ share underperformance has created an attractive entry point as strong services growth supports a durable earnings outlook.

Visa and Mastercard shares have trailed the S&P 500 by 22 to 26% in the past six months and are on track to lag the market in 2025, which would be only the fourth like that since their IPOs.

Both stocks now trade at discounts to their own histories and at unusually narrow premiums to the broader index.

"Valuations/strong financial performance underpin our more positive stances on Visa and Mastercard," analysts at HSBC said. 

"Attractive financial algorithm remains intact as services generate outsized growth"

HSBC raised its price target on Visa to $389 from $335 and lifted Mastercard’s target to $633 from $598.

Continued double digit revenue and earnings growth is supported by fast expanding value added services, which is about 30% of Visa revenue and makes up for 40% at Mastercard.

HSBC expects these businesses to keep growing at mid to high teen rates, providing a lift to overall revenue even if core payments growth slows.

For Visa, HSBC forecasts about 10% annual net revenue growth and low double digit EPS growth through 2027, saying the company’s services and commercial payments units offer meaningful long term upside. The bank said it has a slight preference for Visa given its lower multiple.

HSBC said Mastercard should deliver low double digit revenue and mid teen EPS growth despite the drag from Capital One’s debit migration, helped by strong services demand and faster growth in non US markets.

Concerns over new payment technologies, regulation and domestic schemes have weighed on the stocks, but it remain at odds with consistent performance and the companies’ ability to broaden revenue beyond traditional network fees.

Investing.com -- IBM announced Monday that it will acquire Confluent Inc. (NASDAQ: CFLT) for $31 per share in cash, representing an enterprise value of $11 billion.

According to Jefferies in a note just prior to the confirmation, the company is a “strategically sound fit.”

The deal is expected to mark IBM’s largest acquisition since its $34 billion purchase of Red Hat in 2019 and reinforce a strategy centered on “software reacceleration.”

Jefferies analyst Brent Thill wrote that Confluent represents an “attractive technology asset in data streaming,” whose growth could be amplified under IBM’s broader distribution and deep partner ecosystem, including Red Hat, watsonx and IBM Consulting. 

The combination, Jefferies said, would extend IBM’s software stack into “real-time data streaming and unlock cross-sell opportunities” by pairing Confluent’s managed Kafka service with IBM’s automation and security products.

The firm emphasized the strategic rationale, arguing that real-time event streaming, Confluent’s specialty, addresses “one of the most critical pain points in modern enterprise architectures.” 

Jefferies stated that these capabilities will complement IBM’s hybrid cloud and AI-first strategy by providing a robust data movement layer that accelerates AI adoption and operational intelligence across environments.

From a valuation standpoint, Jefferies wrote: “The proposed $11B deal value implies an 8.5x EV/NTM sales takeout multiple for CFLT, a 2-turn premium to the average takeout multiple of the comparable transactions but a ~1.5-turn discount to HashiCorp’s takeout multiple.”

Investing.com -- Power generation has emerged as a critical bottleneck in data center development, with availability determining expansion capabilities across the digital infrastructure landscape. According to BofA Securities, the constraints in U.S. grid infrastructure are pushing data center operators toward off-grid power solutions to overcome capacity limitations and rising connection costs.

The shift toward off-grid power generation is accelerating as large customers face specific grid or generation costs for connection. Currently, gas accounts for approximately 50% of planned capacity increases for onsite power generation, followed by battery storage, solar, and nuclear options. This trend is particularly beneficial for companies specializing in gas turbines and gas engines for onsite prime power generation.

BofA Securities has identified two standout stocks in this sector:

1. GE Vernova

BofA Securities rates GEV as a "Buy" with a price objective of $725, based on a 26x EV/EBITDA multiple of their 2027 adjusted EBITDA estimate. This target represents a premium to the 13x peer average on 2026 estimates, which analysts believe is warranted given GEV’s above-peer earnings growth and margin trajectory. The company is positioned to benefit significantly from the growing demand for gas turbines in off-grid data center power generation. Key risks include potential changes to government wind turbine incentives, execution challenges on targeted $500 million cost reductions by 2028, secular decline in natural gas turbine demand, and potential cost overruns on services and equipment contracts.

In recent news, GE Vernova announced its first onshore wind repower upgrade agreement outside the United States with Taiwan Power Company. Additionally, analysts at firms including Jefferies, Mizuho, and TD Cowen have adjusted their price targets on the company, citing a mixed outlook and weaker wind orders.

2. Caterpillar

Also rated as a "Buy" by BofA Securities, CAT has a price objective of $650 based on 27x 2026 estimated EPS. This valuation exceeds the 15-year historical range of 15-18x, reflecting the company’s portfolio resiliency and structural growth drivers, particularly in power generation. While facing some headwinds that may slow growth, CAT benefits from unique macro and business cycle factors supporting stronger cycle-over-cycle earnings, including infrastructure development, construction spending shifts, higher miner free cash flow generation, aging fleets, and data center expansion. Potential downside risks include tariff policies, reduced capital spending among mining and energy customers, pricing pressures, dealer destocking, and dealer sales growth deterioration.

Caterpillar announced a strategic agreement with Vertiv to collaborate on advanced energy solutions for data centers. The company is also seeing strong demand, with Truist Securities noting a significant multiyear backlog for its power generation engines and a record total backlog providing substantial revenue visibility.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.