Still with another key week of earnings underway, the focus will soon shift away from the dollars and cents to verbal cues provided at shareholder gatherings around the world. With most of these events now held in person, knowing when volatility is likely to strike is pivotal for traders. Back in Q1, we noted that March is prime time for corporate conferences before earnings season begins. Before summer break ensues, shareholder meetings take the spotlight right as the “sell in May and go away” crowd makes noise.
May: Peak Shareholder Meeting Month
This quarter, more than 2,500 shareholder meetings are on the docket. June features the tail end of the season with under 1,000 events. While there are a material number of April meetings, we think of the unofficial kickoff to the peak of the season to come on the first Saturday in May.
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Berkshire Hathaway
But don’t pour your mint juleps just yet. Before the most exciting two minutes in sports happens in Kentucky, the most influential investor on the planet hosts the Berkshire Hathaway (BRKA) shareholder festival in Omaha. Value investors will pay close attention to what Warren Buffett and Charlie Munger have to say. With Berkshire’s cash position swelling once again, are new big buy plans going to be talked about? And what is the succession plan update?
A New Crypto Bull Market
On the opposite end of the spectrum, one asset class is many lengths ahead of other market horses in 2023. Bitcoin is once again flirting with the $30,000 mark after dipping under $16,000 last November. The once-popular (now maybe infamous) cryptocurrency has about doubled year-to-date. After a bludgeoning in 2022, Coinbase (COIN) shares are markedly higher over the last several months but have also retreated from the February peak. Key insights into retail token trading trends could be discussed at the meeting on June 16 if the same trend as last year holds.
The AI Boom
More broadly, artificial intelligence (AI) has been the talk of earnings season among tech firms. The metaverse has taken a back seat to transformational generative AI capabilities that are front and center for companies and individuals alike. While Apple’s shareholder meeting took place on March 10, May 24 is when Amazon (AMZN) has its event. Then comes Meta Platforms (META) on May 31 and Alphabet (GOOGL) on the afternoon of June 2. NVIDIA (NVDA) might also announce a shareholder event in early June if history is any guide.
Consumers Spending Is Strong in One Niche
Pivoting from big-cap tech, consumers continue to be on the move. International travel trends are robust while domestic flights are sure to be jam-packed once school gets out. Adults, meanwhile, are rolling the dice in Vegas. Both MGM Resorts (MGM) and Las Vegas Sands (LVS) shares are up from a year ago. MGM, one of the best S&P 500 stocks since May last year, held its shareholder meeting on May 2 while LVS’s is on May 11.
The airlines might also give color on travel trends: American Airlines (AAL) hosts its event on May 10, then comes the embattled Southwest Airlines’ (LUV) date on May 17 before United’s May 24 gathering.
Services > Goods. Hard Times in Manufacturing.
While travel and services are hot, the manufacturing sector and goods spending are arguably in recession territory. If one area of the economy is going to pull the broad environment into contraction, it might be manufacturing.
General Electric (GE) has been a massive winner on the year, up nearly 50%. After spinning off its healthcare unit last year, everything has been coming up roses for the conglomerate. Then comes UPS, which has not been so fortunate – the company delivered a lackluster earnings report. Its meeting is on May 4.
Other Industrials-sector names with shareholder gatherings are 3M (MMM) on May 9, Honeywell (HON) on May 19, and Trane Technologies (TT) on June 1. Caterpillar (CAT) may hold an event in early to mid-June, but that has not been announced yet.
Energy Market: Conspicuously Quiet
Another sector on edge right now is Energy. Oil prices have given back all of their gains after the surprise production cut news by OPEC-plus last month. Still, most firms are very free cash flow positive and are rewarding their investors with juicy dividends and big buybacks.
A slew of major names have meetings this month: Occidental (OXY) on May 5, ConocoPhillips (COP) on the 16th, EOG Resources (EOG) on the 24th, and Pioneer Natural (PXD) on May 25. Then come the major integrateds: ExxonMobil (XOM) and Chevron (CVX) both host shareholder events on May 31.
Jamie & Elon Pair Up
In the Financials sector, the lone wolf is Jamie Dimon at JPMorgan Chase (JPM). The S&P 500’s largest bank company holds its annual meeting on May 16 amid uncertainty regarding the CEO’s future. That is also when Tesla (TSLA) holds its annual event. So, America’s banker and the world’s second-richest man will have to share the spotlight.
The Bottom Line
Shareholder meetings often fly under the radar in terms of volatility catalysts money managers are watching. But just one management shakeup or activist investor move can send a stock soaring or plunging. Wall Street Horizon tracks all the key meetings so our clients can better manage risk.
This blog post has been written by a third-party contributor and does not necessarily reflect the opinion of FactSet. The information contained in this blog post is not legal, tax, or investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.
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