Don’t Be A Stock Market Victim: Zendesk Inc. (ZEN), TechnipFMC plc (FTI)

Zendesk Inc. (NYSE: ZEN) shares are 21.51% up in the year-to-date (YTD) period and have moved 6.35% or $5.56 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +85.37% lower. Comparatively, the stock is -8.66% down YTD and 10.35% over the trailing 3-month period. If we look at the shorter duration, its week performance is 6.83% and -2.10% over the month.

Analyst Recommendations

On May 01, 2020, Piper Sandler recommended the ZEN stock is a Neutral, while earlier, Citigroup had Initiated the stock as a Neutral on July 16, 2020. 22 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the ZEN stock is a “Moderate Buy. 0 of the 22 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 15 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $93.11 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $106.45. The consensus price target represents an upside potential 12.53.

Earnings Forecast

Analysts estimate the earnings to increase 55.60% in the current quarter to $0.11, down from the $0.12 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.47, up 24.00% from $0.31 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.08 and $0.16. Wall Street estimates earnings per share to be at an average of $0.7 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 483 over the last 12 months, while SEC filings reveal that there have been 530 insider sales over the same period. Insiders have purchases 472,631 shares while those sold by company executives and officers stand at 639,905. The last 3 months have seen insiders trade a total of 108,934 and 154,827 in purchases and sales respectively.

Liu Ying Christina, a Chief Accounting Officer at the company, sold 440 shares worth $39160.0 at $89.00 per share on Aug 19. The Chief Financial Officer had earlier sold another 5,000 ZEN shares valued at $0.43 million on Aug 20. The shares were sold at $86.53 per share. Svane Mikkel (Chair and CEO) sold 50,000 shares at $87.98 per share on Aug 17 for a total of $4.4 million while Johnson InaMarie, (Chief People & Diversity Off.) sold 1,561 shares on Aug 11 for $0.14 million with each share fetching $86.66.

TechnipFMC plc (NYSE:FTI), on the other hand, is trading around $7.52 with a market cap of $3.49B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $11.82 and spell out a more modest performance – a 36.38% return. Some analysts are even forecasting $0.47 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

FTI’s operating margin was negative on the trailing 12 months basis, remaining steady at -37.50%, while the operating expenses over the recent quarter were at $413.4 million. This represented a 86.91% of the company’s total revenues which amounted $3.16 billion. With this in place, we can see that the company’s diluted EPS inclined $0.03 on the year-over-year period, growing to $0.21 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 $19.59 billion from $19.93 billion over the previous quarter. The cash flow from operating activities totaled -$66.0 million, significantly lower than the $195.5 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$243.7 million.

Insider activity

Insiders have transacted a total of 31 times at TechnipFMC plc over the last 6 months, with insider purchases undertaken 28 times and accounting for 1,055,022 shares. Insider sales totaled 11,379 shares over the same period, with these deals completed in 3 transactions. Looking at these numbers, we realize that net purchases over that period are 25.0 shares. Insiders now hold a total of 3.15M shares after the latest sales, with 63.60% net shares purchased.

Major holders

Insiders own 0.70% of the company shares, while shares held by institutions stand at 84.60% with a share float percentage of 446.29M. Investors are also buoyed by the number of investors in a company, with TechnipFMC plc having a total of 621 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 30.03 million shares worth more than $205.4 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 6.68% of shares outstanding.

The other major institutional holder is Bpifrance SA, with the investment firm holding over 24.69 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $168.87 million and represent 5.49% of shares outstanding.