TopGun^® Press

Brendan Wood International Investor Conviction Intel – Financials

September 17th, 2024 by TopGun Press

Below are some of the most topical Financial Stocks on the BWI Shareholder Confidence Index based on our daily chats with global investors. If you would like more detailed shareholder conviction intelligence on Global Financial companies, please contact Gordon Peck or Matthew Lapointe.

Allstate Corp

According to institutional investors, although Allstate’s stock has performed well over the last year, Allstate’s slowdown in policy growth, its high exposure to catastrophe-prone States and the volatility of personal auto are raising concerns for investors. Thus far in 3Q, Short-Term Growth, Price Appreciation Potential and the Commitment to Own the name have declined. Investors lack confidence in Allstate’s growth and are looking for a stronger and more consistent strategy from management going forward.

PayPal Holdings, Inc.

PayPal’s new CEO, Alex Chriss, has been in the seat for about a year. Over the last 12 months, both investment quality ratings and ownership conviction have improved. According to investors, the current strategy has the right focus and has been working so far but some investors are taking a ‘wait and see approach’. They are concerned that growth in the long term may continue to decelerate. Confidence in the CEO, Strategy, Transparency, Short-Term Growth and Momentum of Investor Confidence are improving , however confidence in the Long-Term Growth was flat.

Citigroup

Citigroup has been a topical name among institutional investors since outlining its restructuring plan. According to institutional investors, the plan inspires some confidence but investors are not willing to give Citigroup the benefit of the doubt about management’s ability to execute. Thus far in 3Q, investor confidence ratings of Citigroup lag the peer group in most of the investor confidence metrics. In particular, confidence in the CEO, CFO and Board slipped a little. Institutional investors say they want to see execution of the strategy rather than “smooth talking” from the management team.

goeasy Ltd

On July 4th, goeasy Ltd announced that Jason Mullins would be stepping down from the CEO position. Prior to the announcement, institutional investors rated Mullins as a top 4 CEO amongst all the Canadian financial names. Jason was seen by investors as a creator of the culture and strategy at goeasy, not a product of having a deep bench and massive team like some other CEOs. Since the announcement, investor confidence in goeasy’s CEO is resetting, as investors are curious about who the next CEO will be and what the company looks like post Jason Mullins.

Largest Increases in the Momentum of Investor Confidence – FIG Sector (YE 3Q 2024 as of September 16 vs. YE 2Q 2024)

Largest Increases:

AGF Management Limited: 14%

Apollo Global Management LLC: 12%

Fifth Third Bancorp:11%

National Bank of Canada: 8%

Power Corporation of Canada: 7%

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About Brendan Wood International:

Brendan Wood International (BWI), formed in 1970, is a private advisory group which originates performance investigation programs in the capital markets. Relying on its real time intelligence, BWI advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. Big cap companies looking for comprehensive investor confidence data on their organizations are likely to discover that Brendan Wood partners consult with their investors non stop year round. There are 2000+ live consultations with investment professionals overseeing +/- $60 trillion invested in the +/- 1400 big cap companies on the BWI Index. Investors depend on BWI to quantify the demand side of the investment industry, including the name by name research sales and trading professionals who influence investor demand. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off-sites in fifty cities. Brendan Wood founded the exclusive TopGun Club, a performance based institution.

Disclaimer:

We wish to emphasize that all reports, evaluations and assessments contained herein, represent Brendan Wood International’s subjective judgment and opinions, based on our years of experience and on information obtained by us in the course of our research. Much of the factual information contained in the reports has been obtained by us from third parties on whose responses we have relied in good faith, independent verification by Brendan Wood International being, under the circumstances, impossible. While we believe that you will find our reports to be an invaluable tool in formulating your own strategies and judgments, the foregoing should be borne in mind. This report is not meant as investment advice and should not be interpreted as advising on the value of a company’s securities, the advisability of investing in, purchasing or selling any company’s securities or any other conclusion relating to investment/divestiture of a company’s securities. Finally, this report is not intended as an offer or solicitation for the purchase or sale of any company’s securities.