A Pair of Stock To Put On Your Watchlist: SM Energy Company (SM), At Home Group Inc. (HOME)

SM Energy Company (NYSE: SM) shares are -77.22% down in the year-to-date (YTD) period and have moved 2.81% or $0.07 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +184.44% lower. Comparatively, the stock is -79.35% down YTD and -27.27% over the trailing 3-month period. If we look at the shorter duration, its week performance is -1.92% and -30.05% over the month.

Analyst Recommendations

On April 07, 2020, Scotiabank recommended the SM stock is a Sector Underperform, while earlier, Seaport Global Securities had Initiated the stock as a Neutral on July 27, 2020. 18 analysts offering the recommendations for the stock have a consensus rating of 2.90 to suggest that the SM stock is a “Moderate Buy. 1 of the 18 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 3 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $2.56. The forecasts give the SM Energy Company stock a price target range of $8.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.00. The two limits represent an upside potential of 68.0% or 14.67%.

Earnings Forecast

Analysts estimate the earnings to increase 70.00% in the current quarter to -$0.27, down from the -$0.11 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.62, down -28.20% from -$0.48 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.91 and $0.1. Wall Street estimates earnings per share to be at an average of -$1.86 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 75 over the last 12 months, while SEC filings reveal that there have been 36 insider sales over the same period. Insiders have purchases 1,125,289 shares while those sold by company executives and officers stand at 227,460. The last 3 months have seen insiders trade a total of 991,907 and 227,460 in purchases and sales respectively.

Copeland David W, a EVP and General Counsel at the company, bought 10,000 shares worth $15400.0 at $1.54 per share on Mar 09. The Director had earlier bought another 40,000 SM shares valued at $80000.0 on Mar 10. The shares were bought at $2.00 per share. PERU RAMIRO G (Director) bought 15,000 shares at $1.43 per share on Mar 09 for a total of $21450.0 while PERU RAMIRO G, (Director) bought 7,500 shares on Mar 06 for $31500.0 with each share fetching $4.20.

At Home Group Inc. (NYSE:HOME), on the other hand, is trading around $17.51 with a market cap of $1.12B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $14.10 and spell out a less modest performance – a -24.18% return. Some analysts are even forecasting $1.44 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

HOME’s operating margin was negative on the trailing 12 months basis, remaining steady at -44.70%, while the operating expenses over the recent quarter were at $388.91 million. This represented a -104.85% of the company’s total revenues which amounted $189.85 million. With this in place, we can see that the company’s diluted EPS declined -$5.60 on the year-over-year period, growing to $0.21 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jul 2020), the total assets figure advanced to $2.47 billion from $2.68 billion over the previous quarter. The cash flow from operating activities totaled -$55.2 million, significantly lower than the $1.17 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$74.44 million.

Insider activity

Insiders have transacted a total of 26 times at At Home Group Inc. over the last 6 months, with insider purchases undertaken 11 times and accounting for 1,326,009 shares. Insider sales totaled 15,190 shares over the same period, with these deals completed in 15 transactions. Looking at these numbers, we realize that net purchases over that period are -4.0 shares. Insiders now hold a total of 4.6M shares after the latest sales, with 61.80% net shares purchased.

Major holders

Insiders own 0.60% of the company shares with a share float percentage of 52.50M. Investors are also buoyed by the number of investors in a company, with At Home Group Inc. having a total of 181 institutions that hold shares in the company. The top two institutional holders are CAS Investment Partners, LLC with over 10.43 million shares worth more than $67.71 million. As of Jun 29, 2020, CAS Investment Partners, LLC held 16.25% of shares outstanding.

The other major institutional holder is Prentice Capital Management, LP, with the investment firm holding over 4.82 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $31.3 million and represent 7.51% of shares outstanding.