Kevin Warsh Nomination Discloses Over $192M in Assets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy EL?
Source: seekingalpha
- Asset Disclosure: Federal Reserve Chair nominee Kevin Warsh and his wife disclosed assets exceeding $192 million, including two Juggernaut Funds valued over $50 million each, highlighting his significant financial background and influence.
- Divestment Plan: Warsh submitted a statement indicating he will resign from roles at Duquesne Family Office and Bessemer Securities and divest his two major assets upon confirmation, ensuring independence from the Federal Reserve.
- Spousal Asset Overview: Warsh's wife, Jane Lauder, holds over $1.5 billion in Estee Lauder stock directly and through trusts, along with 31 investments valued over $1 million each, showcasing the family's strong influence in the beauty industry.
- Historical Comparison: If confirmed, Warsh will be one of the wealthiest members in Federal Reserve history, with assets surpassing $100 million, compared to current Chair Powell's estimated assets of over $100 million at his 2017 nomination, indicating a rising wealth trend among Fed leadership.
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Analyst Views on EL
Wall Street analysts forecast EL stock price to rise
18 Analyst Rating
8 Buy
9 Hold
1 Sell
Moderate Buy
Current: 75.340
Low
70.00
Averages
106.76
High
130.00
Current: 75.340
Low
70.00
Averages
106.76
High
130.00
About EL
The Estee Lauder Companies Inc. is a manufacturer, marketer and seller of skin care, makeup, fragrance and hair care products. Its products are sold in over 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Lab Series, Origins, M.A.C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, Kilian Paris, Too Faced, Dr.Jart+, and the DECIEM family of brands, including The Ordinary and NIOD, and BALMAIN Beauty. It is a licensee for fragrances, cosmetics and/or related products for AERIN, BALMAIN, and Dr. Andrew Weil. Its skin care products include moisturizers, serums, cleansers, toners, exfoliators, facial masks, body care, sun care products and others. Its makeup products include foundations, powders, concealers and setting sprays, lipsticks, lip liners and lip glosses, and mascaras, eyeshadows and eyeliners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend King Status: This increase positions P&G among only five companies that have raised dividends for over 70 consecutive years, further solidifying its status as a Dividend King and attracting income-focused investors.
- Market Competitiveness: As the largest household and personal products company globally, P&G demonstrates resilience with an operating margin exceeding 20%, despite facing consumer spending challenges, showcasing its ability to maintain stability during economic fluctuations.
- Investment Opportunity: The recent stock sell-off has pushed P&G's dividend yield to a five-year high, with a price-to-earnings ratio of 21.4 and a forward P/E of 20.8, presenting an attractive buying opportunity for value investors looking to anchor their passive income portfolios.
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- Financial Health: With earnings per share at $6.75 and free cash flow at $6.09, P&G maintains a solid dividend payout ratio of 61.9%, indicating robust financial health while sustaining dividend growth.
- Market Adaptability: Despite consumer spending challenges, P&G effectively offsets weak performance in North America by leveraging a diversified product portfolio and geographic flexibility, ensuring continued growth in the global market.
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- Surge in iPhone Shipments: According to CounterPoint Research, iPhone shipments in China increased by 20% in Q1, despite an overall decline in the smartphone market due to soaring memory costs, providing a positive outlook for Apple's primary revenue source.
- Netflix Price Target Cuts: Barclays lowered Netflix's price target from $115 to $110, with Wolfe Research and Rosenblatt also cutting theirs to $107 and $95 respectively, leading to a more than 9% drop in shares, reflecting market concerns about its future performance.
- Target Price Adjustments: Several companies, including Danaher and Abbott Laboratories, saw their price targets cut, with Danaher's target reduced from $220 to $205 due to concerns over its legacy business, while Abbott's target was lowered to $120 by multiple firms, although all maintained a buy rating.
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- Incomplete Asset Disclosure: Warsh's financial disclosures indicate assets valued between $135 million and $226 million, but the broad reporting ranges hinder precise wealth calculations, potentially impacting the transparency and credibility of his nomination.
- Ethical Compliance Issues: Warsh is criticized for being the first Fed nominee not in compliance with ethics rules due to his failure to disclose assets exceeding $100 million, raising public concerns about his moral standards and affecting his nomination process.
- Asset Divestment Commitment: Warsh has pledged to divest undisclosed assets within 90 days of confirmation, which, if successful, may alleviate concerns regarding his financial transparency and restore compliance status.
- Impact on Fed Policies: The Fed's 2022 ban on senior officials owning individual stocks and other assets makes Warsh's nomination particularly sensitive, potentially influencing future Fed policy directions and public trust.
See More
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- ASML Surpasses Expectations: ASML's first-quarter results significantly exceeded expectations, and the company raised its 2026 guidance, indicating strong demand for semiconductor manufacturing equipment, which could further boost the stock prices of related companies.
- Morgan Stanley's Strong Quarter: Morgan Stanley reported substantial beats in equities and fixed-income trading, leading to a more than 2% increase in its stock price, showcasing its competitive edge in investment banking, with CEO Ted Pick's leadership gaining market recognition.
- Wells Fargo's Underwhelming Performance: Although Wells Fargo reported decent quarterly results, concerns over its private credit portfolio led analysts to lower its price target and remove it from their best ideas list, resulting in the stock stabilizing after a 5.7% decline.
- Johnson & Johnson Price Target Hikes: Following its earnings report, Barclays and Stifel raised Johnson & Johnson's price targets to $255 and $250 respectively, reflecting market optimism about its strong pharmaceutical portfolio, particularly driven by cancer treatments and Tremfya.
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