A Pair of Stock To Put On Your Watchlist: Town Sports International Holdings Inc. (CLUB), Allied Esports Entertainment Inc. (AESE)

Town Sports International Holdings Inc. (NASDAQ: CLUB) shares are -63.74% down in the year-to-date (YTD) period and have moved 3.23% or $0.02 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +113.33% lower. Comparatively, the stock is -78.67% down YTD and 21.57% over the trailing 3-month period. If we look at the shorter duration, its week performance is -10.73% and 48.86% over the month.

Analyst Recommendations

On October 30, 2018, Imperial Capital recommended the CLUB stock is a Outperform, while earlier, Imperial Capital had Reiterated the stock as a Outperform on April 30, 2019. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.64. The forecasts give the Town Sports International Holdings Inc. stock a price target range of $3.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.00. The two limits represent an upside potential of 78.67% or 78.67%.

Earnings Forecast

Analysts estimate the earnings to decrease -300.00% in the current quarter to $0, down from the $0.09 reported in the same quarter a year ago. Wall Street estimates earnings per share to be at an average of $0 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 12 over the last 12 months, while SEC filings reveal that there have been 5 insider sales over the same period. Insiders have purchases 1,447,005 shares while those sold by company executives and officers stand at 2,807,659. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Ajmera Nitin, a Chief Accounting Officer at the company, sold 2,683 shares worth $7244.0 at $2.70 per share on Jan 22. The Chief Accounting Officer had earlier sold another 2,037 CLUB shares valued at $1589.0 on Mar 23. The shares were sold at $0.78 per share. Walsh Patrick (Chief Executive Officer) bought 4,300,000 shares at $1.50 per share on Jan 03 for a total of $6.45 million while Ajmera Nitin, (Chief Accounting Officer) sold 1,884 shares on Dec 17 for $3297.0 with each share fetching $1.75.

Allied Esports Entertainment Inc. (NASDAQ:AESE), on the other hand, is trading around $1.53 with a market cap of $54.59M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$1.05 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Allied Esports Entertainment Inc. (AESE) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

AESE’s operating margin was negative on the trailing 12 months basis, remaining steady at -94.40%, while the operating expenses over the recent quarter were at $8.36 million. This represented a -82.37% of the company’s total revenues which amounted $4.58 million. With this in place, we can see that the company’s diluted EPS declined -$0.42 on the year-over-year period, shrinking to -$0.24 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $69.91 million from $68.71 million over the previous quarter. The cash flow from operating activities totaled -$3.08 million, significantly higher than the -$4.96 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$3.53 million.

Major holders

Insiders own 20.40% of the company shares, while shares held by institutions stand at 2.50% with a share float percentage of 6.35M. Investors are also buoyed by the number of investors in a company, with Allied Esports Entertainment Inc. having a total of 12 institutions that hold shares in the company. The top two institutional holders are Macquarie Group Limited with over 0.2 million shares worth more than $0.43 million. As of Jun 29, 2020, Macquarie Group Limited held 0.69% of shares outstanding.

The other major institutional holder is Royce & Associates LP, with the investment firm holding over 0.2 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $0.42 million and represent 0.69% of shares outstanding.