Don’t Be A Stock Market Victim: New Relic Inc. (NEWR), Tanger Factory Outlet Centers Inc. (SKT)

New Relic Inc. (NYSE: NEWR) shares are -4.57% down in the year-to-date (YTD) period and have moved 4.53% or $2.72 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +87.25% lower. Comparatively, the stock is -15.49% down YTD and -4.22% over the trailing 3-month period. If we look at the shorter duration, its week performance is 10.33% and -3.79% over the month.

Analyst Recommendations

On August 05, 2020, JP Morgan recommended the NEWR stock is a Neutral, while earlier, Argus had Downgrade the stock as a Hold on August 14, 2020. 15 analysts offering the recommendations for the stock have a consensus rating of 2.50 to suggest that the NEWR stock is a “Moderate Buy. 2 of the 15 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 6 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $62.71 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $69.40. The forecasts give the New Relic Inc. stock a price target range of $89.00 on the higher side while at least one analyst think the stock could plunge to a low of $54.00. The two limits represent an upside potential of 29.54% or -16.13%.

Earnings Forecast

Analysts estimate the earnings to increase 400.00% in the current quarter to $0.01, down from the $0.24 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.17, up 11.50% from $0.66 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.09 and $0.03. Wall Street estimates earnings per share to be at an average of $0.33 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 42 over the last 12 months, while SEC filings reveal that there have been 48 insider sales over the same period. Insiders have purchases 553,629 shares while those sold by company executives and officers stand at 618,104. The last 3 months have seen insiders trade a total of 467,397 and 343,447 in purchases and sales respectively.

Sachleben Mark, a Chief Financial Officer at the company, sold 2,385 shares worth $0.13 million at $55.68 per share on Aug 17. The President and COO had earlier bought another 9,000 NEWR shares valued at $0.51 million on Aug 19. The shares were bought at $56.72 per share. Cirne Lewis (CEO) sold 40,000 shares at $70.56 per share on Aug 03 for a total of $2.82 million while Cirne Lewis, (CEO) sold 40,000 shares on Jul 01 for $2.83 million with each share fetching $70.73.

Tanger Factory Outlet Centers Inc. (NYSE:SKT), on the other hand, is trading around $5.78 with a market cap of $548.70M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $5.89 and spell out a more modest performance – a 1.87% return. Some analysts are even forecasting -$0.37 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Tanger Factory Outlet Centers Inc. (SKT) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

SKT’s operating margin was positive on the trailing 12 months basis, remaining steady at 4.50%, while the operating expenses over the recent quarter were at $16.94 million. This represented a 73.52% of the company’s total revenues which amounted $63.99 million. With this in place, we can see that the company’s diluted EPS declined -$0.26 on the year-over-year period, growing to $0.16 as given in the last earnings report.

The cash flow from operating activities totaled $14.24 million, significantly lower than the $92.72 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$3.42 million.

Insider activity

Insiders have transacted a total of 7 times at Tanger Factory Outlet Centers Inc. over the last 6 months, with insider purchases undertaken 6 times and accounting for 409,649 shares. Insider sales totaled 12,500 shares over the same period, with these deals completed in 1 transactions. Looking at these numbers, we realize that net purchases over that period are 5.0 shares. Insiders now hold a total of 2.63M shares after the latest sales, with 17.80% net shares purchased.

Major holders

Insiders own 0.50% of the company shares, while shares held by institutions stand at 82.30% with a share float percentage of 91.05M. Investors are also buoyed by the number of investors in a company, with Tanger Factory Outlet Centers Inc. having a total of 365 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 16.11 million shares worth more than $114.86 million. As of Jun 29, 2020, Blackrock Inc. held 17.23% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 14.98 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $106.77 million and represent 16.02% of shares outstanding.