Investors have great interest in Spectrum Pharmaceuticals Inc. (SPPI), Trupanion Inc. (TRUP)

Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI) shares are 8.52% up in the year-to-date (YTD) period and have moved -1.99% or -$0.08 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +126.72% lower. Comparatively, the stock is -17.02% down YTD and 33.00% over the trailing 3-month period. If we look at the shorter duration, its week performance is 2.33% and 8.22% over the month.

Analyst Recommendations

On December 26, 2019, Cantor Fitzgerald recommended the SPPI stock is a Neutral, while earlier, Guggenheim had Downgrade the stock as a Neutral on December 26, 2019. 5 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the SPPI stock is a “Moderate Buy. 0 of the 5 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.95. The forecasts give the Spectrum Pharmaceuticals Inc. stock a price target range of $15.00 on the higher side while at least one analyst think the stock could plunge to a low of $7.00. The two limits represent an upside potential of 73.67% or 43.57%.

Earnings Forecast

Analysts estimate the earnings to increase 12.50% in the current quarter to -$0.36, down from the -$0.23 reported in the same quarter a year ago. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.39 and -$0.36. Wall Street estimates earnings per share to be at an average of -$0.96 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 14 over the last 12 months, while SEC filings reveal that there have been 40 insider sales over the same period. Insiders have purchases 1,180,857 shares while those sold by company executives and officers stand at 145,950. The last 3 months have seen insiders trade a total of 188,000 and 51,298 in purchases and sales respectively.

McGahan Keith M, a Chief Legal Officer at the company, sold 294 shares worth $1183.0 at $4.03 per share on Aug 11. The Chief Legal Officer had earlier sold another 250 SPPI shares valued at $928.0 on Aug 12. The shares were sold at $3.71 per share. McGahan Keith M (Chief Legal Officer) sold 13,881 shares at $3.36 per share on Jul 09 for a total of $46640.0 while McGahan Keith M, (Chief Legal Officer) sold 15,773 shares on Jun 24 for $50631.0 with each share fetching $3.21.

Trupanion Inc. (NASDAQ:TRUP), on the other hand, is trading around $64.62 with a market cap of $2.33B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $57.20 and spell out a less modest performance – a -12.97% return. Some analysts are even forecasting -$0.06 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

TRUP’s operating margin was positive on the trailing 12 months basis, remaining steady at 0.50%, while the operating expenses over the recent quarter were at $18.41 million. This represented a 84.39% of the company’s total revenues which amounted $117.92 million. With this in place, we can see that the company’s diluted EPS inclined $0.04 on the year-over-year period, shrinking to -$0.06 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 $290.27 million from $273.2 million over the previous quarter. Short term investments amounted to $75.16 million while total current assets were at $191.79 million. The cash flow from operating activities totaled $7.77 million, significantly higher than the $6.88 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $4.54 million.

Insider activity

Insiders have transacted a total of 107 times at Trupanion Inc. over the last 6 months, with insider purchases undertaken 35 times and accounting for 233,830 shares. Insider sales totaled 1,099,325 shares over the same period, with these deals completed in 72 transactions. Looking at these numbers, we realize that net purchases over that period are -37.0 shares. Insiders now hold a total of 4.99M shares after the latest sales, with -2.40% net shares purchased.

Major holders

Insiders own 1.60% of the company shares with a share float percentage of 30.34M. Investors are also buoyed by the number of investors in a company, with Trupanion Inc. having a total of 233 institutions that hold shares in the company. The top two institutional holders are Wellington Management Company, LLP with over 3.22 million shares worth more than $137.43 million. As of Jun 29, 2020, Wellington Management Company, LLP held 9.13% of shares outstanding.

The other major institutional holder is Nine Ten Capital Management LLC, with the investment firm holding over 3.06 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $130.53 million and represent 8.67% of shares outstanding.