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Red Flags from SWK, RICK, NFLX, and IKNA

And we dive deeper into auditor tracking


Welcome to our weekly reports featuring impactful and unusual disclosures as extracted by Hudson Labs' algorithms.

Filings from the week of January 24-28.

 

Top red flags from last week:


STANLEY BLACK & DECKER INC (SWK) | 8-K | $30B SWK found an error in their EPS calculation, causing them to restate their prior year annual report.


RCI HOSPITALITY HOLDINGS INC (RICK) | 8-K | $860M The company’s President/CEO, Eric Langan, is jointly guaranteeing the loan.


NETFLIX INC (NFLX) | 10-K | $240B Netflix is overflowing with content, and content liabilities. On balance sheet content liabilities increased from $19.2B to $23.3B, and off-balance sheet content obligations increased from $12.2B to $15.8B.


IKENA ONCOLOGY INC (IKNA) | 8-K | $500M Douglas Carlson, IKNA’s COO and Executive VP of Finance, is stepping down “to pursue other professional opportunities with broader responsibility”. Perhaps in his next role he’ll have three c-suite titles?


Auditors make a difference


When we added auditor tracking to our platform - a new trend jumped out. Certain audit partner names come up again and again next to high risk companies.


Here’s a few audit partners whose clients have an average risk score of at least 70*, and the names of a few companies they’ve audited.


auditors of companies with high risk scores.

*Risk Score are available on our institutional platform. Our risk score range from 0-100, with 70-79 a moderate-high risk, and 80+ as high risk.

 

About us: Hudson Labs extracts red flags from SEC filings based on learned associations with downside outcomes. Our institutional dashboard analyzes annual and quarterly statements, 8-Ks (and soon - prospectuses and SEC comment letters) for over 8,000 tickers. We process filings and render analysis in real-time. Connect with us on Twitter.


Check-out our whitepaper to learn about how unstructured data in 10-Ks is underused.

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