Silvercorp Metals Inc. (SVM) Vs. EQT Corporation (EQT): Updated Outlook

Silvercorp Metals Inc. (AMEX: SVM) shares are 36.16% up in the year-to-date (YTD) period and have moved 3.90% or $0.29 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +414.67% lower. Comparatively, the stock is -9.07% down YTD and 84.25% over the trailing 3-month period. If we look at the shorter duration, its week performance is -0.39% and 3.49% over the month.

Analyst Recommendations

On March 11, 2020, Alliance Global Partners recommended the SVM stock is a Buy, while earlier, Alliance Global Partners had Downgrade the stock as a Neutral on July 20, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the SVM stock is a “Moderate Buy. 0 of the 5 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 $7.72 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $3.52. The forecasts give the Silvercorp Metals Inc. stock a price target range of $8.25 on the higher side while at least one analyst think the stock could plunge to a low of $5.60. The two limits represent an upside potential of 6.42% or -37.86%.

Earnings Forecast

For the current year, earnings should grow to an average of $0.21, up 1.90% from $0.27 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.07 and $0.07. Wall Street estimates earnings per share to be at an average of $0.26 for the next year.

EQT Corporation (NYSE:EQT), on the other hand, is trading around $15.68 with a market cap of $3.96B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $17.44 and spell out a more modest performance – a 10.09% return. Some analysts are even forecasting -$0.23 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

EQT’s operating margin was negative on the trailing 12 months basis, remaining steady at -52.90%, while the operating expenses over the recent quarter were at $65.39 million. This represented a 87.59% of the company’s total revenues which amounted $527.07 million. With this in place, we can see that the company’s diluted EPS declined -$1.03 on the year-over-year period, growing to $0.49 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 $18.01 billion from $18.63 billion over the previous quarter. The cash flow from operating activities totaled $947.12 million, significantly lower than the $1.31 billion reported in the year-ago quarter. The company’s free cash flow for the quarter was $435.03 million.

Insider activity

Insiders have transacted a total of 7 times at EQT Corporation over the last 6 months, with insider purchases undertaken 7 times and accounting for 32,240 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 7.0 shares. Insiders now hold a total of 3.11M shares after the latest sales, with 10.00% net shares purchased.

Major holders

Insiders own 0.30% of the company shares, while shares held by institutions stand at 96.70% with a share float percentage of 252.65M. Investors are also buoyed by the number of investors in a company, with EQT Corporation having a total of 411 institutions that hold shares in the company. The top two institutional holders are Price (T.Rowe) Associates Inc with over 29.22 million shares worth more than $347.73 million. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 11.43% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 24.61 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $292.91 million and represent 9.63% of shares outstanding.