Time To Sell Or More Gains Ahead? – Targa Resources Corp. (TRGP), Nutanix Inc. (NTNX)

Targa Resources Corp. (NYSE: TRGP) shares are -58.12% down in the year-to-date (YTD) period and have moved -4.52% or -$0.81 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +367.21% lower. Comparatively, the stock is -59.41% down YTD and -6.66% over the trailing 3-month period. If we look at the shorter duration, its week performance is -6.86% and -4.47% over the month.

Analyst Recommendations

On August 14, 2020, Wolfe Research recommended the TRGP stock is a Peer Perform, while earlier, BofA Securities had Resumed the stock as a Buy on August 19, 2020. 20 analysts offering the recommendations for the stock have a consensus rating of 2.40 to suggest that the TRGP stock is a “Moderate Buy. 1 of the 20 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 2 rating it as an Overweight.

The stock currently trades at $17.10 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $24.11. The consensus price target represents an upside potential 29.08.

Earnings Forecast

Analysts estimate the earnings to increase 261.50% in the current quarter to $0.04, up from the -$0.34 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$7.21, down -4.40% from -$1.44 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.21 and $0.49. Wall Street estimates earnings per share to be at an average of $0.39 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 26 over the last 12 months, while SEC filings reveal that there have been 26 insider sales over the same period. Insiders have purchases 475,526 shares while those sold by company executives and officers stand at 275,688. The last 3 months have seen insiders trade a total of 2,149 and 53,370 in purchases and sales respectively.

JOYCE RENE R, a Director at the company, sold 160,000 shares worth $1.12 million at $7.00 per share on Mar 23. The Director had earlier sold another 40,364 TRGP shares valued at $0.83 million on Aug 11. The shares were sold at $20.46 per share.

Nutanix Inc. (NASDAQ:NTNX), on the other hand, is trading around $21.64 with a market cap of $4.42B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $28.71 and spell out a more modest performance – a 24.63% return. Some analysts are even forecasting $Technology per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

NTNX’s operating margin was negative on the trailing 12 months basis, remaining steady at -65.60%, while the operating expenses over the recent quarter were at $476.45 million. This represented a -49.7% of the company’s total revenues which amounted $318.27 million. With this in place, we can see that the company’s diluted EPS declined -$1.23 on the year-over-year period, shrinking to -$1.15 as given in the last earnings report.

In terms of the balance sheet & cash flow as of Name, the total assets figure advanced to $1.77 billion from $1.86 billion over the previous quarter. Short term investments amounted to $469.81 million while total current assets were at $1.1 billion. The cash flow from operating activities totaled -$163.51 million, significantly lower than the $51.82 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$235.59 million.

Insider activity

Insiders have transacted a total of 44 times at Nutanix Inc. over the last 6 months, with insider purchases undertaken 34 times and accounting for 266,406 shares. Insider sales totaled 99,534 shares over the same period, with these deals completed in 10 transactions. Looking at these numbers, we realize that net purchases over that period are 24.0 shares. Insiders now hold a total of Athenex, Inc. shares after the latest sales, with WisdomTree 90/60 U.S. Balanced net shares purchased.

Major holders

Insiders own 0.20% of the company shares, while shares held by institutions stand at 76.00% with a share float percentage of 181.99M.