Heat Check: Veeva Systems Inc. (VEEV) Vs. DCP Midstream LP (DCP)

Veeva Systems Inc. (NYSE: VEEV) shares are 91.01% up in the year-to-date (YTD) period and have moved 3.26% or $8.49 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +127.47% lower. Comparatively, the stock is -1.90% down YTD and 31.57% over the trailing 3-month period. If we look at the shorter duration, its week performance is 0.67% and 7.04% over the month.

Analyst Recommendations

On July 07, 2020, Stephens recommended the VEEV stock is a Overweight, while earlier, FBN Securities had Initiated the stock as a Outperform on July 23, 2020. 23 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the VEEV stock is a “Moderate Buy. 1 of the 23 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 14 recommend buying, with 2 rating it as an Overweight.

The stock currently trades at $268.67 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $241.25. The forecasts give the Veeva Systems Inc. stock a price target range of $310.00 on the higher side while at least one analyst think the stock could plunge to a low of $167.00. The two limits represent an upside potential of 13.33% or -60.88%.

Earnings Forecast

Analysts estimate the earnings to increase 13.80% in the current quarter to $0.64, up from the $0.55 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $2.56, up 26.10% from $2.19 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.6 and $0.72. Wall Street estimates earnings per share to be at an average of $3.05 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 132 over the last 12 months, while SEC filings reveal that there have been 143 insider sales over the same period. Insiders have purchases 420,704 shares while those sold by company executives and officers stand at 389,155. The last 3 months have seen insiders trade a total of 136,840 and 138,654 in purchases and sales respectively.

Faddis Jonathan, a SVP, Gen. Counsel, Secretary at the company, sold 261 shares worth $62585.0 at $239.79 per share on Jul 14. The EVP Global Sales had earlier sold another 2,665 VEEV shares valued at $0.72 million on Aug 05. The shares were sold at $268.59 per share. O’Connor Michele (Chief Accounting Officer) sold 689 shares at $256.31 per share on Jul 13 for a total of $0.18 million while MATEO ALAN, (EVP Global Sales) sold 2,665 shares on Jul 06 for $0.65 million with each share fetching $244.20.

DCP Midstream LP (NYSE:DCP), on the other hand, is trading around $12.74 with a market cap of $2.68B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $14.69 and spell out a more modest performance – a 13.27% return. Some analysts are even forecasting -$1.84 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

DCP’s operating margin was negative on the trailing 12 months basis, remaining steady at -12.40%, while the operating expenses over the recent quarter were at $536.0 million. This represented a 57.93% of the company’s total revenues which amounted $1.27 billion. With this in place, we can see that the company’s diluted EPS inclined $0.15 on the year-over-year period, growing to $0.43 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 $12.95 billion from $13.19 billion over the previous quarter. The cash flow from operating activities totaled $523.0 million, significantly lower than the $546.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $421.0 million.

Insider activity

Insiders have transacted a total of 15 times at DCP Midstream LP over the last 6 months, with insider purchases undertaken 15 times and accounting for 164,025 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 15.0 shares. Insiders now hold a total of 118.55M shares after the latest sales, with 0.10% net shares purchased.

Major holders

Insiders own 0.10% of the company shares, while shares held by institutions stand at 30.90% with a share float percentage of 89.76M. Investors are also buoyed by the number of investors in a company, with DCP Midstream LP having a total of 161 institutions that hold shares in the company. The top two institutional holders are Invesco Ltd. with over 11.23 million shares worth more than $126.9 million. As of Jun 29, 2020, Invesco Ltd. held 5.39% of shares outstanding.

The other major institutional holder is Alps Advisors Inc., with the investment firm holding over 10.97 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $123.99 million and represent 5.27% of shares outstanding.