These 2 Stocks Seize Spotlight: Agora Inc. (API), Dycom Industries Inc. (DY)

Agora Inc. (NASDAQ: API) shares are -6.53% down in the year-to-date (YTD) period and have moved 6.81% or $3.01 higher in the latest trading session. If we look at the shorter duration, its week performance is 8.93% and 29.96% over the month.

Analyst Recommendations

On July 21, 2020, Morgan Stanley recommended the API stock is a Equal-Weight, while earlier, Needham had Initiated the stock as a Buy on July 21, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the API 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 1 rating it as an Overweight.

The stock currently trades at $47.20 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $52.33. The forecasts give the Agora Inc. stock a price target range of $90.20 on the higher side while at least one analyst think the stock could plunge to a low of $42.00. The two limits represent an upside potential of 47.67% or -12.38%.

Earnings Forecast

Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.01 and $0.01. Wall Street estimates earnings per share to be at an average of -$0.01 for the next year.

Dycom Industries Inc. (NYSE:DY), on the other hand, is trading around $54.38 with a market cap of $1.73B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $56.33 and spell out a more modest performance – a 3.46% return. Some analysts are even forecasting $2.23 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

DY’s operating margin was positive on the trailing 12 months basis, remaining steady at 2.20%, while the operating expenses over the recent quarter were at $165.23 million. This represented a 79.71% of the company’s total revenues which amounted $814.32 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 $0.45 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 $2.81 billion from $2.22 billion over the previous quarter. The cash flow from operating activities totaled $85.16 million, significantly higher than the -$56.12 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $64.46 million.

Insider activity

Insiders have transacted a total of 39 times at Dycom Industries Inc. over the last 6 months, with insider purchases undertaken 27 times and accounting for 357,695 shares. Insider sales totaled 198,951 shares over the same period, with these deals completed in 12 transactions. Looking at these numbers, we realize that net purchases over that period are 15.0 shares. Insiders now hold a total of 1.45M shares after the latest sales, with 7.70% net shares purchased.

Major holders

Insiders own 4.30% of the company shares, while shares held by institutions stand at 97.57% with a share float percentage of 30.23M. Investors are also buoyed by the number of investors in a company, with Dycom Industries Inc. having a total of 308 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 4.32 million shares worth more than $176.45 million. As of Jun 29, 2020, FMR, LLC held 13.64% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 3.67 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $149.97 million and represent 11.59% of shares outstanding.