Cassava Sciences Inc. (SAVA) And Coupa Software Incorporated (COUP) Saying Scary Stuff?

Cassava Sciences Inc. (NASDAQ: SAVA) shares are -38.65% down in the year-to-date (YTD) period and have moved 0.63% or $0.02 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +95.71% lower. Comparatively, the stock is -70.87% down YTD and 51.18% over the trailing 3-month period. If we look at the shorter duration, its week performance is -7.54% and -6.18% over the month.

Analyst Recommendations

On May 15, 2020, Maxim Group recommended the SAVA stock is a Hold, while earlier, H.C. Wainwright had Downgrade the stock as a Neutral on May 18, 2020. 1 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the SAVA stock is a “Hold. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.19. The forecasts give the Cassava Sciences Inc. stock a price target range of $16.00 on the higher side while at least one analyst think the stock could plunge to a low of $16.00. The two limits represent an upside potential of 80.06% or 80.06%.

Earnings Forecast

Analysts estimate the earnings to increase 16.70% in the current quarter to -$0.07, down from the -$0.06 reported in the same quarter a year ago. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.09 and -$0.07. Wall Street estimates earnings per share to be at an average of -$0.34 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 6 over the last 12 months, while SEC filings reveal that there have been 0 insider sales over the same period. Insiders have purchases 617,899 shares while those sold by company executives and officers stand at 0. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

BARBIER REMI, a President and CEO at the company, bought 10,000 shares worth $41500.0 at $4.15 per share on Dec 26. The President and CEO had earlier bought another 100,000 SAVA shares valued at $0.55 million on Dec 31. The shares were bought at $5.53 per share. ROBERTSON SANFORD (Director) bought 423,788 shares at $2.20 per share on Dec 20 for a total of $0.93 million while Schoen Eric, (Chief Financial Officer) bought 5,300 shares on Dec 19 for $9964.0 with each share fetching $1.88.

Coupa Software Incorporated (NASDAQ:COUP), on the other hand, is trading around $331.83 with a market cap of $22.61B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $245.15 and spell out a less modest performance – a -35.36% return. Some analysts are even forecasting $0.38 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Coupa Software Incorporated (COUP) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

COUP’s operating margin was negative on the trailing 12 months basis, remaining steady at -14.30%, while the operating expenses over the recent quarter were at $82.84 million. This represented a 30.51% of the company’s total revenues which amounted $119.21 million. With this in place, we can see that the company’s diluted EPS declined -$0.23 on the year-over-year period, shrinking to -$0.34 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jul 2020), the total assets figure advanced to $1.49 billion from $1.59 billion over the previous quarter. Short term investments amounted to $409.97 million while total current assets were at $834.1 million. The cash flow from operating activities totaled $15.41 million, significantly lower than the $18.79 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $11.81 million.

Insider activity

Insiders have transacted a total of 264 times at Coupa Software Incorporated over the last 6 months, with insider purchases undertaken 73 times and accounting for 482,798 shares. Insider sales totaled 489,864 shares over the same period, with these deals completed in 191 transactions. Looking at these numbers, we realize that net purchases over that period are -118.0 shares. Insiders now hold a total of 325.98k shares after the latest sales, with -1.40% net shares purchased.

Major holders

Insiders own 0.50% of the company shares with a share float percentage of 62.72M. Investors are also buoyed by the number of investors in a company, with Coupa Software Incorporated having a total of 452 institutions that hold shares in the company. The top two institutional holders are Morgan Stanley with over 8.48 million shares worth more than $2.35 billion. As of Jun 29, 2020, Morgan Stanley held 12.65% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 6.19 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $1.71 billion and represent 9.22% of shares outstanding.