Rimini Street, Inc. (NASDAQ:RMNI) is a leading provider of enterprise software support services, offering third-party support for major software brands like Oracle and SAP. This approach enables clients to significantly reduce their maintenance costs. In the competitive landscape of software support services, Rimini Street distinguishes itself through its remarkable financial performance and efficient capital utilization.Key Insights:Rimini Street's Return on Invested Capital (ROIC) is 49.18%, substantially ...

Core Viewpoint - OneSpan Inc. is expanding its mobile security capabilities through the acquisition of Build38, aiming to enhance its App Shielding offerings and provide stronger protection against mobile application attacks [2][3][4]. Group 1: Acquisition Details - OneSpan signed a definitive agreement to acquire Build38, a company specializing in next-generation mobile application protection [2]. - The acquisition is expected to close by March 2026, pending regulatory approvals and customary closing conditions [6]. Group 2: Security Enhancements - The integration of Build38's SDK-based security tools will enhance OneSpan's mobile security portfolio, providing deeper in-app protection against attacks targeting applications and devices [3][4]. - The acquisition will improve visibility into mobile app activities, addressing a common need among security teams [3]. Group 3: Market Position and Compliance - Build38 is recognized as a Sample Vendor in the Gartner Hype Cycle for Application Security, 2025, and is a leading provider in Europe for securing mobile identities [5]. - The combined expertise of OneSpan and Build38 aims to elevate standards in mobile identity protection, particularly in regulated industries [5]. Group 4: Financial Information - OneSpan offers a quarterly dividend of $0.12 per share, resulting in a dividend yield of 4.12% as of January 29 [6].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Stock Performance - Avnet Inc (NASDAQ:AVT) has a dividend yield of 2.84%. Analyst William Stein from Truist Securities maintained a Hold rating and raised the price target from $54 to $55, with an accuracy rate of 86%. Recent quarterly results exceeded expectations [6] - Texas Instruments Inc (NASDAQ:TXN) has a dividend yield of 3.20%. Analyst William Stein maintained a Hold rating and increased the price target from $175 to $195, while JP Morgan's Harlan Sur maintained an Overweight rating but reduced the price target from $225 to $210. Texas Instruments reported third-quarter revenue of $4.74 billion, surpassing estimates of $4.65 billion [6] - OneSpan Inc (NASDAQ:OSPN) has a dividend yield of 3.91%. Analyst Rudy Kessinger from DA Davidson maintained a Neutral rating and lowered the price target from $15 to $13, while Catharine Trebnick from Rosenblatt maintained a Buy rating but cut the price target from $17 to $15. OneSpan appointed Shaun Bierweiler as chief revenue officer [6]

Group 1: Investment Strategy - The combination of high free cash flow yield and dividends is a powerful investment strategy that has been proven over 30 years of data across multiple market cycles [2][26][27] - From 1990 to 2016, stocks in the top quintile for both dividend yield and free cash flow yield generated an annual excess return of 6.03% compared to the market [3][16] - High dividend yield stocks without free cash flow produced only a 0.10% excess return, while high free cash flow yield stocks without dividends achieved 3.57% [4][16] Group 2: Importance of Free Cash Flow - Free cash flow is a more reliable indicator than earnings, as it reflects actual cash available for dividends [8][10] - Companies that generate strong free cash flow but do not pay dividends often waste cash on unproductive projects, which can destroy shareholder value [9][10] - High free cash flow dividend payers have shown superior characteristics, including lower leverage and higher returns on equity [10][11] Group 3: Payout Ratios and Dividend Growth - The optimal payout ratio for dividends is around 40 to 50% of free cash flow, allowing for sustainable dividend growth [12][13] - Companies with a 40 to 50% payout ratio can maintain dividends during economic downturns, while those with higher ratios are at risk of cuts [15][21] - The Pacer Cash Cows Index, focusing on high free cash flow yield companies, has delivered annual dividend growth of 9.2% while maintaining a sustainable payout ratio [13][18] Group 4: Performance During Market Cycles - High free cash flow dividend payers recover faster from market downturns, averaging 15 months compared to 28 months for non-payers [11][22] - The S&P study from 1990 to 2017 found that the top quintile combining dividend yield and free cash flow yield outperformed 75% of the time [16] - During bear markets, this strategy provided meaningful downside protection, outperforming 50% of the time [16] Group 5: Company Examples - Archer-Daniels-Midland (ADM) has a dividend yield of 3.4% and a payout ratio of 24%, demonstrating stability and strong free cash flow generation [28][31] - HNI Corp. has a dividend yield of approximately 3.3% with a payout ratio of 43 to 45%, showing resilience despite market uncertainties [33][37] - OneSpan operates in digital security with a dividend yield of 4.03% and a low payout ratio under 8%, indicating strong cash flow and growth potential [39][41] - Luxfer Holdings has a dividend yield of approximately 4.3% and a payout ratio of 43%, focusing on high-performance materials with steady demand [45][48]

Core Insights - i3 Verticals, Inc. is a technology and integrated payments company serving small and medium-sized businesses across various sectors, including education, healthcare, and public sector [1] - The company faces competition in the payment processing and technology sectors [1] Financial Performance - i3 Verticals has a Return on Invested Capital (ROIC) of 0.26%, indicating minimal efficiency in generating returns from investments [2][6] - The company's Weighted Average Cost of Capital (WACC) is 8.55%, suggesting that it pays a high rate for its capital [2][6] - The ROIC to WACC ratio of 0.03 indicates that i3 Verticals struggles to generate returns that exceed its cost of capital [2] Peer Comparison - International Money Express, Inc. (IMXI) and OneSpan Inc. (OSPN) have a ROIC to WACC ratio of 2.06, demonstrating superior capital utilization compared to i3 Verticals [3][6] - nLIGHT, Inc. (LASR) and Repay Holdings Corporation (RPAY) exhibit negative ROIC to WACC ratios of -1.25 and -1.34, respectively, indicating challenges in covering their cost of capital [4][6] - PC Connection, Inc. (CNXN) has a ROIC to WACC ratio of 1.06, suggesting a moderate level of efficiency in generating returns above its cost of capital [5]

Core Insights - Sumitomo Mitsui Trust Bank (SuMiTB) has partnered with SCSK and OneSpan to enhance mobile banking security through the implementation of a cloud-based FIDO authentication solution [1][2][3] Group 1: Security Enhancement - The collaboration aims to combat phishing-related fraud and account takeover, addressing significant projected losses of approximately Y690bn ($4.4bn) in 2025 due to account takeover fraud in Japan [2] - The Financial Services Agency (FSA) in Japan has proposed amendments requiring financial institutions to adopt phishing-resistant authentication methods, aligning with regulatory changes [2] Group 2: Technological Implementation - OneSpan's CEO highlighted the importance of this project, emphasizing the company's leadership in Japan's FIDO market and its commitment to delivering secure authentication solutions that meet regulatory standards [3] - SuMiTB plans to extend the use of FIDO authentication beyond login verification to secure mobile banking transactions, enhancing the overall security framework [3][4] Group 3: Strategic Goals - The bank's strategy focuses on reducing account impersonation risks and providing a secure digital banking environment, protecting customers from advanced phishing attempts and account takeover attacks [4] - SCSK expressed its commitment to supporting SuMiTB in deploying advanced authentication solutions, showcasing the strength of their partnership with OneSpan [5]

Market Overview - U.S. stocks showed mixed performance, with the Dow Jones index falling over 100 points, down 0.30% to 47,379.27, while NASDAQ rose 0.27% to 23,644.68, and S&P 500 dropped 0.07% to 6,817.76 [1] - Consumer discretionary shares increased by 3.8%, while utilities stocks decreased by 1.2% [1] Company Performance - Amazon.com Inc. reported third-quarter net sales of $180.2 billion, a 13% year-over-year increase, surpassing the consensus estimate of $177.8 billion. The company anticipates fourth-quarter net sales between $206.0 billion and $213.0 billion, reflecting a year-over-year growth of 10% to 13% [2] - AMTD Digital Inc. saw a significant revenue increase of 1,085.9% year-over-year, reaching $73.2 million for the six months ended April 30, leading to a 99% surge in its share price to $3.3600 [8] - Butterfly Network, Inc. shares rose 27% to $2.59 following better-than-expected quarterly results [8] - Illumina, Inc. shares increased by 23% to $121.41 after reporting third-quarter results above estimates and raising its full-year guidance [8] - Luminar Technologies, Inc. shares dropped 49% to $1.0801 after receiving a subpoena from the SEC and suspending its FY25 guidance [8] - Intensity Therapeutics, Inc. shares fell 42% to $0.7612 after announcing a $4 million registered direct offering of common stock [8] - OneSpan Inc. shares decreased by 27% to $11.32 after reporting worse-than-expected third-quarter sales and cutting its FY25 sales guidance, with Rosenblatt reducing its price target from $17 to $15 [8] Commodity Market - Oil prices increased by 0.5% to $60.87, while gold prices decreased by 0.5% to $3,995.20. Silver fell by 0.9% to $48.190, and copper dropped 0.4% to $5.0820 [5] European Market - European shares were lower, with the eurozone's STOXX 600 slipping 0.51%, Spain's IBEX 35 Index down 0.05%, London's FTSE 100 down 0.44%, Germany's DAX 40 down 0.67%, and France's CAC 40 down 0.44% [6] Asian Market - Asian markets closed mostly lower, with Japan's Nikkei 225 gaining 2.12%, while Hong Kong's Hang Seng fell 1.43%, China's Shanghai Composite dipped 0.81%, and India's BSE Sensex declined 0.55% [9]

Market Overview - U.S. stocks traded higher, with the Nasdaq Composite gaining more than 1% on Friday, while the Dow rose 0.09% to 47,563.80, and the S&P 500 increased by 0.58% to 6,862.07 [1] - Consumer discretionary shares saw a significant jump of 4.3% on Friday, indicating strong performance in that sector [1] Company Performance - Apple Inc. reported fiscal fourth-quarter revenue of $102.47 billion, surpassing analyst estimates of $102.17 billion, and earnings of $1.85 per share, exceeding expectations of $1.76 per share [3] - EPWK Holdings Ltd. shares surged 137% to $0.1559, while Getty Images Holdings, Inc. experienced a 45% increase to $2.93 following a licensing agreement with Perplexity AI [10] - MSP Recovery, Inc. shares rose 77% to $0.56, indicating strong market interest [10] - Luminar Technologies, Inc. shares dropped 34% to $1.3801 after receiving a subpoena from the SEC and suspending its FY25 guidance [10] - Intensity Therapeutics, Inc. shares fell 28% to $0.95 after announcing a $4 million registered direct offering of common stock [10] - OneSpan Inc. shares decreased by 26% to $11.52 after reporting worse-than-expected third-quarter sales and cutting its FY25 sales guidance [10] Commodity Market - Oil prices increased by 0.7% to $61.04, while gold rose by 0.4% to $4,031.90 [6] - Silver prices fell by 0.3% to $48.485, and copper decreased by 0.4% to $5.0860 [6] International Markets - European shares were lower, with the eurozone's STOXX 600 slipping 0.5%, and major indices in Spain, London, Germany, and France also experiencing declines [7] - Asian markets closed mostly lower, with Japan's Nikkei 225 gaining 2.12%, while Hong Kong's Hang Seng fell 1.43%, and China's Shanghai Composite dipped 0.81% [8]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]