In Securities and Exchange Commission documents filed today, both executives sold at $12.26 a share:
Chief Executive Officer Benjamin Breier, 4,905 shares shares for $60,135. Shares beneficially owned after the trade: 678,452
Chief People Officer Stephen Cunanan, 3,511 shares for $43,045. Beneficially owned after: 83,527.
Kindred’s stock closed this afternoon at $11.67 a share, down 4.8%, or 59 cents. The Louisville-based hospital and nursing giant employs 2,200 workers in the city, and 102,000 across the nation. More about Kindred.
The Dow Jones Industrial Average cratered 3.3% this afternoon, tumbling 589 points and wiping out its year-to-date gains as fears gripped markets with Britain’s stunning vote to leave the E.U. The broader S&P 500 tumbled 3% and the Nasdaq slumped 3.8%. Latest news.
All 10 big-employer stocks tracked by Boulevard fell sharply:
To fully appreciate the magnitude of the losses, consider Kentucky’s richest family, the Browns of Brown-Forman. They saw $201 million of their more than $6 billion in paper wealth evaporate in a matter of hours.
The impact of last night’s stunning Brexit news for Louisville employers will be greatest for those with extensive overseas footprints and currency exposure.
They include Brown-Forman, which sells 15 brands such as Jack Daniel’s in 160 countries worldwide. The U.K. is the company’s second-biggest market, accounting for 10% of fiscal 2016 sales, according to Brown-Forman’s annual report. Europe, excluding the U.K., was 21%. The U.S. is No. 1, with 46%. The company says foreign markets are increasingly important: “In fiscal 2016, we generated 54% of our net sales outside the United States compared to 41% 10 years ago.”
Other companies likely taking post-Brexit hits include Papa John’s, which operates in 39 countries; Yum in 130 countries and now reshaping overseas operations with a planned China spinoff in October; Ford, which is already reworking its European sales strategy, and Amazon, a relative newcomer abroad.
Boulevard’s Stock Portfolio companies routinely warn investors about risks of doing business outside the U.S. Papa John’s, for one, noted in its annual report that “international operations could be negatively impacted by changes in international economic, political, security or health conditions in the countries in which the company or our franchisees operate.”
Yum’s 14,600-unit KFC Division bears the biggest overseas exposure; it’s in 120 countries, with more than a third — 5,003 restaurants — in China.
“Our business,” Yum says in its annual report, “is increasingly exposed to risks inherent in international operations. These risks, which can vary substantially by country, include political instability, corruption, social and ethnic unrest, changes in economic conditions . . . as well as changes in the laws and policies that govern foreign investment in countries where our restaurants are operated.”
Also, Yum warns, “results of operations and the value of our foreign assets are affected by fluctuations in currency exchange rates, which may adversely affect reported earnings.”
Boulevard’s Big 10 companies employ 63,000 workers in the Louisville area, and nearly 2 million worldwide.
A news summary, with a special focus on big Louisville employers; updated 4:54 p.m.
UPS just announced that its corporate foundation will explore using drones to deliver life-saving medicines such as blood and vaccines are delivered across the world. The foundation has awarded an $800,000 grant to support the initial launch in Rwanda (press release). Here’s the foundation’s GuideStar page, including annual IRS tax returns.
FORD: A top executive now says that while dropping the two-tier wage system increased labor costs, it eliminated a major source of anxiety in the automaker’s plants (Automotive News).
AMAZON: 1,500 Amazon shareholders want the company to stop selling Trump-branded products (Fast Company). CEO Jeff Bezos has sold 1% of his stake — just over one million shares — worth $671 million. The stock was sold last Thursday according to a predetermined schedule called an SEC Rule 10b5-1 plan, and takes his stake down to 17% of the company from 17.5% (New York Post). Regulatory filing. Amazon shares closed this afternoon at $679.75, up less than 1%.
CHURCHILL DOWNS: Only 17 people were arrested in and around the namesake track on Derby Day (Courier-Journal).
KINDRED: Why the healthcare giant isn’t content being the No. 1 home health provider, according to CEO Benjamin Breier (Home Healthcare News).
In other news, Metro Council President David Yates is expected to introduce an amendment today exempting Airbnb and other short-term rentals from some regulations during major events, such as the Kentucky Derby (WFPL). Former state agriculture commissioner and University of Kentucky basketball star Richie Farmer has filed for bankruptcy (Courier-Journal).
Newspaper publisher Tribune Publishing Co. said its board had adopted a shareholder rights plan — popularly known as a “poison pill” — in a bid to thwart Courier-Journal owner Gannett Co.’s unsolicited $815 million takeover offer (Reuters).