A focus on opportunistic stocks: Acasti Pharma Inc. (ACST), ZAGG Inc (ZAGG)

Acasti Pharma Inc. (NASDAQ: ACST) shares are -70.82% down in the year-to-date (YTD) period and have moved 5.44% or $0.03 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +186.00% lower. Comparatively, the stock is -71.85% down YTD and 12.95% over the trailing 3-month period. If we look at the shorter duration, its week performance is -11.71% and 12.53% over the month.

Analyst Recommendations

On January 13, 2020, B. Riley FBR recommended the ACST stock is a Neutral, while earlier, B. Riley FBR had Upgrade the stock as a Buy on July 06, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the ACST stock is a “Moderate Buy. 0 of the 5 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 5 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.71. The forecasts give the Acasti Pharma Inc. stock a price target range of $7.00 on the higher side while at least one analyst think the stock could plunge to a low of $0.99. The two limits represent an upside potential of 89.86% or 28.28%.

ZAGG Inc (NASDAQ:ZAGG), on the other hand, is trading around $3.18 with a market cap of $96.51M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$2.27 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ZAGG’s operating margin was negative on the trailing 12 months basis, remaining steady at -10.90%, while the operating expenses over the recent quarter were at $30.38 million. This represented a 60.61% of the company’s total revenues which amounted $77.12 million. With this in place, we can see that the company’s diluted EPS declined -$0.11 on the year-over-year period, shrinking to -$0.18 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 $312.79 million from $329.64 million over the previous quarter. The cash flow from operating activities totaled $8.47 million, significantly higher than the -$13.73 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $5.68 million.

Insider activity

Insiders have transacted a total of 17 times at ZAGG Inc over the last 6 months, with insider purchases undertaken 12 times and accounting for 182,978 shares. Insider sales totaled 21,495 shares over the same period, with these deals completed in 5 transactions. Looking at these numbers, we realize that net purchases over that period are 7.0 shares. Insiders now hold a total of 1.82M shares after the latest sales, with 13.30% net shares purchased.

Major holders

Insiders own 2.40% of the company shares, while shares held by institutions stand at 83.00% with a share float percentage of 28.79M.