Kopin Corporation (KOPN) And Splunk Inc. (SPLK) Saying Scary Stuff?

Kopin Corporation (NASDAQ: KOPN) shares are 286.44% up in the year-to-date (YTD) period and have moved 9.93% or $0.14 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +715.79% lower. Comparatively, the stock is -28.24% down YTD and 51.96% over the trailing 3-month period. If we look at the shorter duration, its week performance is 5.44% and -12.92% over the month.

Analyst Recommendations

On February 04, 2019, Ladenburg Thalmann recommended the KOPN stock is a Buy, while earlier, H.C. Wainwright had Initiated the stock as a Buy on August 25, 2020. 2 analysts offering the recommendations for the stock have a consensus rating of 1.00 to suggest that the KOPN stock is a “Strong Buy. 0 of the 2 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.55. The forecasts give the Kopin Corporation stock a price target range of $2.50 on the higher side while at least one analyst think the stock could plunge to a low of $2.00. The two limits represent an upside potential of 38.0% or 22.5%.

Earnings Forecast

Analysts estimate the earnings to increase 80.00% in the current quarter to -$0.02, up from the -$0.08 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.09, up 16.00% from -$0.29 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.02 and -$0.02. Wall Street estimates earnings per share to be at an average of -$0.11 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 17 over the last 12 months, while SEC filings reveal that there have been 1 insider sales over the same period. Insiders have purchases 690,000 shares while those sold by company executives and officers stand at 17,500. The last 3 months have seen insiders trade a total of 60,000 and 0 in purchases and sales respectively.

FAN JOHN C C, a CEO & President at the company, bought 150,000 shares worth $99000.0 at $0.66 per share on May 08. The CEO & President had earlier bought another 100,000 KOPN shares valued at $74000.0 on May 11. The shares were bought at $0.74 per share.

Splunk Inc. (NASDAQ:SPLK), on the other hand, is trading around $216.74 with a market cap of $34.06B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $193.24 and spell out a less modest performance – a -12.16% return. Some analysts are even forecasting -$0.3 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

SPLK’s operating margin was negative on the trailing 12 months basis, remaining steady at -18.20%, while the operating expenses over the recent quarter were at $594.69 million. This represented a -37.0% of the company’s total revenues which amounted $434.08 million. With this in place, we can see that the company’s diluted EPS declined -$1.94 on the year-over-year period, shrinking to -$1.04 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Oct 2020), the total assets figure advanced to $5.22 billion from $5.44 billion over the previous quarter. Short term investments amounted to $834.07 million while total current assets were at $2.63 billion. The cash flow from operating activities totaled $46.04 million, significantly higher than the $35.03 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $27.74 million.

Insider activity

Insiders have transacted a total of 102 times at Splunk Inc. over the last 6 months, with insider purchases undertaken 21 times and accounting for 473,821 shares. Insider sales totaled 249,549 shares over the same period, with these deals completed in 81 transactions. Looking at these numbers, we realize that net purchases over that period are -60.0 shares. Insiders now hold a total of 862.66k shares after the latest sales, with 39.60% net shares purchased.

Major holders

Insiders own 0.70% of the company shares, while shares held by institutions stand at 95.60% with a share float percentage of 157.52M. Investors are also buoyed by the number of investors in a company, with Splunk Inc. having a total of 900 institutions that hold shares in the company. The top two institutional holders are Price (T.Rowe) Associates Inc with over 24.42 million shares worth more than $4.85 billion. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 15.37% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 14.77 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $2.93 billion and represent 9.30% of shares outstanding.