Volatility Returns To Williams-Sonoma Inc. (WSM), Petroleo Brasileiro S.A. – Petrobras (PBR)

Williams-Sonoma Inc. (NYSE: WSM) shares are 34.75% up in the year-to-date (YTD) period and have moved 3.78% or $3.6 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +280.47% lower. Comparatively, the stock is -2.72% down YTD and 35.51% over the trailing 3-month period. If we look at the shorter duration, its week performance is 3.30% and 18.51% over the month.

Analyst Recommendations

On June 18, 2020, Wells Fargo recommended the WSM stock is a Equal Weight, while earlier, Gordon Haskett had Upgrade the stock as a Buy on August 21, 2020. 22 analysts offering the recommendations for the stock have a consensus rating of 2.80 to suggest that the WSM stock is a “Moderate Buy. 3 of the 22 analysts rate the stock as a “Sell”, while 2 has rated it as “Underweight”. 5 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $98.96 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $81.81. The forecasts give the Williams-Sonoma Inc. stock a price target range of $115.00 on the higher side while at least one analyst think the stock could plunge to a low of $54.00. The two limits represent an upside potential of 13.95% or -83.26%.

Earnings Forecast

Analysts estimate the earnings to increase 80.00% in the current quarter to $1.09, up from the $1.02 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $4.89, up 3.20% from $4.84 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $1.87 and $2.52. Wall Street estimates earnings per share to be at an average of $5.1 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 44 over the last 12 months, while SEC filings reveal that there have been 67 insider sales over the same period. Insiders have purchases 610,671 shares while those sold by company executives and officers stand at 545,718. The last 3 months have seen insiders trade a total of 27,937 and 142,535 in purchases and sales respectively.

ALBER LAURA, a PRESIDENT & CEO at the company, sold 20,000 shares worth $1.69 million at $84.55 per share on Jul 16. The PRESIDENT & CEO had earlier sold another 15,000 WSM shares valued at $1.44 million on Aug 17. The shares were sold at $95.78 per share. ALBER LAURA (PRESIDENT & CEO) sold 15,000 shares at $84.17 per share on Jun 16 for a total of $1.26 million while Ross Ryan, (PRESIDENT WS BRAND) sold 8,000 shares on Jun 09 for $0.69 million with each share fetching $86.09.

Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR), on the other hand, is trading around $8.12 with a market cap of $53.22B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $13.75 and spell out a more modest performance – a 40.95% return. Some analysts are even forecasting -$0.8 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Petroleo Brasileiro S.A. – Petrobras (PBR) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

PBR’s operating margin was negative on the trailing 12 months basis, remaining steady at -2.80%, while the operating expenses over the recent quarter were at $1.42 billion. This represented a 85.06% of the company’s total revenues which amounted $9.48 billion.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $185.38 billion from $186.9 billion over the previous quarter. Short term investments amounted to $539.0 million while total current assets were at $36.88 billion. The cash flow from operating activities totaled $13.23 billion, significantly higher than the $9.94 billion reported in the year-ago quarter. The company’s free cash flow for the quarter was $9.86 billion.

Major holders

Insiders own 39.80% of the company shares, while shares held by institutions stand at 17.90% with a share float percentage of 4.19B. Investors are also buoyed by the number of investors in a company, with Petroleo Brasileiro S.A. – Petrobras having a total of 480 institutions that hold shares in the company. The top two institutional holders are Capital World Investors with over 63.55 million shares worth more than $525.54 million. As of Jun 29, 2020, Capital World Investors held 4.40% of shares outstanding.

The other major institutional holder is Renaissance Technologies, LLC, with the investment firm holding over 57.31 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $473.98 million and represent 3.97% of shares outstanding.