This Could Be A Brutal Week For Envision Solar International Inc. (EVSI), EnLink Midstream LLC (ENLC)

Envision Solar International Inc. (NASDAQ: EVSI) shares are 184.33% up in the year-to-date (YTD) period and have moved 20.67% or $2.27 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +209.58% lower. Comparatively, the stock is -17.08% down YTD and 61.59% over the trailing 3-month period. If we look at the shorter duration, its week performance is 3.68% and 3.19% over the month.

Analyst Recommendations

2 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the EVSI stock is a “Moderate 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 $13.25 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $13.00. The forecasts give the Envision Solar International Inc. stock a price target range of $25.00 on the higher side while at least one analyst think the stock could plunge to a low of $17.00. The two limits represent an upside potential of 47.0% or 22.06%.

Earnings Forecast

Analysts estimate the earnings to decrease -14.30% in the current quarter to -$0.16, down from the -$0.12 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.56, up 9.60% from -$0.88 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 $0.12 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 6 over the last 12 months, while SEC filings reveal that there have been 2 insider sales over the same period. Insiders have purchases 90,532 shares while those sold by company executives and officers stand at 22,500. The last 3 months have seen insiders trade a total of 20,408 and 0 in purchases and sales respectively.

EnLink Midstream LLC (NYSE:ENLC), on the other hand, is trading around $2.85 with a market cap of $1.45B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $2.97 and spell out a more modest performance – a 4.04% return. Some analysts are even forecasting $0.16 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ENLC’s operating margin was negative on the trailing 12 months basis, remaining steady at -19.40%, while the operating expenses over the recent quarter were at $55.2 million. This represented a 92.59% of the company’s total revenues which amounted $744.9 million. With this in place, we can see that the company’s diluted EPS inclined $0.06 on the year-over-year period, growing to $0.02 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 $8.72 billion from $9.06 billion over the previous quarter. The cash flow from operating activities totaled $316.8 million, significantly lower than the $521.5 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $113.2 million.

Insider activity

Insiders have transacted a total of 13 times at EnLink Midstream LLC over the last 6 months, with insider purchases undertaken 7 times and accounting for 346,152 shares. Insider sales totaled 228,431 shares over the same period, with these deals completed in 6 transactions. Looking at these numbers, we realize that net purchases over that period are 1.0 shares. Insiders now hold a total of 5.45M shares after the latest sales, with 6.80% net shares purchased.

Major holders

Insiders own 0.90% of the company shares, while shares held by institutions stand at 86.20% with a share float percentage of 259.08M. Investors are also buoyed by the number of investors in a company, with EnLink Midstream LLC having a total of 229 institutions that hold shares in the company. The top two institutional holders are Invesco Ltd. with over 46.64 million shares worth more than $113.79 million. As of Jun 29, 2020, Invesco Ltd. held 9.53% of shares outstanding.

The other major institutional holder is Alps Advisors Inc., with the investment firm holding over 31.89 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $77.82 million and represent 6.51% of shares outstanding.