A Pair of Stock To Put On Your Watchlist: Gold Fields Limited (GFI), Hess Corporation (HES)

Gold Fields Limited (NYSE: GFI) shares are 94.55% up in the year-to-date (YTD) period and have moved 3.97% or $0.49 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +238.79% lower. Comparatively, the stock is -10.80% down YTD and 71.66% over the trailing 3-month period. If we look at the shorter duration, its week performance is 5.25% and -4.68% over the month.

Analyst Recommendations

On April 21, 2020, BofA/Merrill recommended the GFI stock is a Buy, while earlier, JP Morgan had Upgrade the stock as a Overweight on June 22, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the GFI stock is a “Moderate Buy. 0 of the 10 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 5 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $12.84 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $13.61. The forecasts give the Gold Fields Limited stock a price target range of $16.33 on the higher side while at least one analyst think the stock could plunge to a low of $6.85. The two limits represent an upside potential of 21.37% or -87.45%.

Hess Corporation (NYSE:HES), on the other hand, is trading around $46.30 with a market cap of $14.41B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $57.41 and spell out a more modest performance – a 19.35% return. Some analysts are even forecasting -$1.99 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Hess Corporation (HES) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

HES’s operating margin was negative on the trailing 12 months basis, remaining steady at -43.80%, while the operating expenses over the recent quarter were at $119.0 million. This represented a 85.87% of the company’s total revenues which amounted $842.0 million. With this in place, we can see that the company’s diluted EPS declined -$0.86 on the year-over-year period, growing to $0.11 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 $19.55 billion from $20.72 billion over the previous quarter. The cash flow from operating activities totaled $711.0 million, significantly lower than the $913.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$686.0 million.

Insider activity

Insiders have transacted a total of 39 times at Hess Corporation over the last 6 months, with insider purchases undertaken 27 times and accounting for 99,443 shares. Insider sales totaled 55,597 shares over the same period, with these deals completed in 12 transactions. Looking at these numbers, we realize that net purchases over that period are 15.0 shares. Insiders now hold a total of 33.98M shares after the latest sales, with 0.10% net shares purchased.

Major holders

Insiders own 0.30% of the company shares, while shares held by institutions stand at 88.50% with a share float percentage of 273.73M. Investors are also buoyed by the number of investors in a company, with Hess Corporation having a total of 782 institutions that hold shares in the company.