Stocks That Should Surprise the Market: SandRidge Permian Trust (PER), Omeros Corporation (OMER)

SandRidge Permian Trust (NYSE: PER) shares are -58.81% down in the year-to-date (YTD) period and have moved 6.40% or $0.02 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +40.24% lower. Comparatively, the stock is -69.25% down YTD and -21.88% over the trailing 3-month period. If we look at the shorter duration, its week performance is -8.24% and -14.70% over the month.

Analyst Recommendations

On October 28, 2013, RBC Capital Mkts recommended the PER stock is a Underperform, while earlier, Raymond James had Downgrade the stock as a Mkt Perform on April 20, 2015. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.35. The forecasts give the SandRidge Permian Trust stock a price target range of $5.00 on the higher side while at least one analyst think the stock could plunge to a low of $5.00. The two limits represent an upside potential of 93.0% or 93.0%.

Omeros Corporation (NASDAQ:OMER), on the other hand, is trading around $12.01 with a market cap of $767.56M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$2.24 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

OMER’s operating margin was negative on the trailing 12 months basis, remaining steady at -85.90%, while the operating expenses over the recent quarter were at $41.21 million. This represented a -204.58% of the company’s total revenues which amounted $13.53 million. With this in place, we can see that the company’s diluted EPS declined -$0.61 on the year-over-year period, shrinking to -$0.29 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 $70.69 million from $118.21 million over the previous quarter. Short term investments amounted to $14.12 million while total current assets were at $38.93 million. The cash flow from operating activities totaled -$46.74 million, significantly lower than the -$29.54 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$46.95 million.

Insider activity

Insiders have transacted a total of 3 times at Omeros Corporation over the last 6 months, with insider purchases undertaken 2 times and accounting for 10,000 shares. Insider sales totaled 5,000 shares over the same period, with these deals completed in 1 transactions. Looking at these numbers, we realize that net purchases over that period are 1.0 shares. Insiders now hold a total of 2.94M shares after the latest sales, with 0.20% net shares purchased.

Major holders

Insiders own 0.20% of the company shares, while shares held by institutions stand at 52.50% with a share float percentage of 48.25M. Investors are also buoyed by the number of investors in a company, with Omeros Corporation having a total of 177 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 4.48 million shares worth more than $65.92 million. As of Jun 29, 2020, Blackrock Inc. held 8.21% of shares outstanding.

The other major institutional holder is Ingalls & Snyder, with the investment firm holding over 4.44 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $65.32 million and represent 8.14% of shares outstanding.