Don’t Be A Stock Market Victim: TRACON Pharmaceuticals Inc. (TCON), NovaBay Pharmaceuticals Inc. (NBY)

TRACON Pharmaceuticals Inc. (NASDAQ: TCON) shares are -29.91% down in the year-to-date (YTD) period and have moved 0.00% or $0.0 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +72.63% lower. Comparatively, the stock is -65.83% down YTD and -16.75% over the trailing 3-month period. If we look at the shorter duration, its week performance is -4.09% and -9.39% over the month.

Analyst Recommendations

On March 01, 2019, Needham recommended the TCON stock is a Buy, while earlier, H.C. Wainwright had Reiterated the stock as a Buy on December 23, 2019. 3 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the TCON stock is a “Moderate Buy. 0 of the 3 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.64. The forecasts give the TRACON Pharmaceuticals Inc. stock a price target range of $6.00 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 72.67% or 45.33%.

Earnings Forecast

Analysts estimate the earnings to increase 4.10% in the current quarter to -$0.69, up from the -$1.7 reported in the same quarter a year ago. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.72 and -$0.64. Wall Street estimates earnings per share to be at an average of -$1.94 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 17 over the last 12 months, while SEC filings reveal that there have been 4 insider sales over the same period. Insiders have purchases 129,930 shares while those sold by company executives and officers stand at 385,077. The last 3 months have seen insiders trade a total of 80,238 and 0 in purchases and sales respectively.

THEUER CHARLES, a President and CEO at the company, bought 44,743 shares worth $72851.0 at $1.63 per share on Aug 18. The President and CEO had earlier bought another 30,000 TCON shares valued at $47400.0 on Aug 20. The shares were bought at $1.58 per share. THEUER CHARLES (President and CEO) bought 100 shares at $1.70 per share on Aug 14 for a total of $170.0 while THEUER CHARLES, (President and CEO) bought 5,000 shares on Aug 13 for $8250.0 with each share fetching $1.65.

NovaBay Pharmaceuticals Inc. (AMEX:NBY), on the other hand, is trading around $0.92 with a market cap of $41.50M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.25 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the NovaBay Pharmaceuticals Inc. (NBY) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

NBY’s operating margin was negative on the trailing 12 months basis, remaining steady at -71.20%, while the operating expenses over the recent quarter were at $3.06 million. This represented a 23.32% of the company’s total revenues which amounted $3.98 million. With this in place, we can see that the company’s diluted EPS declined -$0.15 on the year-over-year period, shrinking to -$0.14 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 $13.27 million from $9.47 million over the previous quarter. The cash flow from operating activities totaled -$1.91 million, significantly higher than the -$5.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$1.91 million.

Insider activity

Insiders have transacted a total of 3 times at NovaBay Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 1 times and accounting for 20,000 shares. Insider sales totaled 1,322,350 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are -1.0 shares. Insiders now hold a total of 17.22M shares after the latest sales, with -6.90% net shares purchased.

Major holders

Insiders own 10.00% of the company shares, while shares held by institutions stand at 5.10% with a share float percentage of 32.52M. Investors are also buoyed by the number of investors in a company, with NovaBay Pharmaceuticals Inc. having a total of 18 institutions that hold shares in the company.