Unsafe At Current Price? – Selecta Biosciences Inc. (SELB), Melco Resorts & Entertainment Limited (MLCO)

Selecta Biosciences Inc. (NASDAQ: SELB) shares are 5.04% up in the year-to-date (YTD) period and have moved 5.04% or $0.12 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +76.06% lower. Comparatively, the stock is -48.24% down YTD and -32.07% over the trailing 3-month period. If we look at the shorter duration, its week performance is -6.37% and -0.40% over the month.

Analyst Recommendations

On April 28, 2020, H.C. Wainwright recommended the SELB stock is a Buy, while earlier, Stifel had Downgrade the stock as a Hold on June 12, 2020. 7 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the SELB stock is a “Strong Buy. 0 of the 7 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 6 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $2.50. The forecasts give the Selecta Biosciences Inc. stock a price target range of $13.00 on the higher side while at least one analyst think the stock could plunge to a low of $4.00. The two limits represent an upside potential of 80.77% or 37.5%.

Earnings Forecast

Analysts estimate the earnings to decrease -2,400.00% in the current quarter to $0.1, up from the -$0.26 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.42, up 469.60% from -$1.22 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.16 and -$0.06. Wall Street estimates earnings per share to be at an average of -$0.23 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 10 over the last 12 months, while SEC filings reveal that there have been 4 insider sales over the same period. Insiders have purchases 1,516,392 shares while those sold by company executives and officers stand at 1,257,927. The last 3 months have seen insiders trade a total of 43,778 and 3,253 in purchases and sales respectively.

BARABE TIMOTHY C, a Director at the company, bought 5,000 shares worth $10000.0 at $2.00 per share on Mar 17. The President and CEO had earlier sold another 3,253 SELB shares valued at $12557.0 on Jun 02. The shares were sold at $3.86 per share. Brunn Carsten (President and CEO) sold 3,374 shares at $3.86 per share on Mar 03 for a total of $13011.0 while Brunn Carsten, (President and CEO) sold 14,272 shares on Dec 02 for $21809.0 with each share fetching $1.53.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO), on the other hand, is trading around $19.55 with a market cap of $9.51B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $22.32 and spell out a more modest performance – a 12.41% return. Some analysts are even forecasting -$2.29 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Melco Resorts & Entertainment Limited (MLCO) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

MLCO’s operating margin was negative on the trailing 12 months basis, remaining steady at -3.40%, while the operating expenses over the recent quarter were at $48.51 million. This represented a -532.66% of the company’s total revenues which amounted $7.67 million. With this in place, we can see that the company’s diluted EPS declined -$0.06 on the year-over-year period, growing to $0.22 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 $627.69 million from $8.92 billion over the previous quarter. The company’s free cash flow for the quarter was -$41.23 million.

Major holders

Insiders own 33.50% of the company shares, while shares held by institutions stand at 39.80% with a share float percentage of 455.32M. Investors are also buoyed by the number of investors in a company, with Melco Resorts & Entertainment Limited having a total of 446 institutions that hold shares in the company. The top two institutional holders are Capital Research Global Investors with over 36.43 million shares worth more than $565.41 million. As of Jun 29, 2020, Capital Research Global Investors held 7.37% of shares outstanding.

The other major institutional holder is Capital World Investors, with the investment firm holding over 19.73 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $306.27 million and represent 3.99% of shares outstanding.