eXp World Holdings Inc. (EXPI) And Globalstar Inc. (GSAT) Saying Scary Stuff?

eXp World Holdings Inc. (NASDAQ: EXPI) shares are 259.75% up in the year-to-date (YTD) period and have moved 0.05% or $0.02 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +526.11% lower. Comparatively, the stock is -4.96% down YTD and 281.29% over the trailing 3-month period. If we look at the shorter duration, its week performance is -2.70% and 100.49% over the month.

Analyst Recommendations

3 analysts offering the recommendations for the stock have a consensus rating of 1.30 to suggest that the EXPI stock is a “Strong Buy. 0 of the 3 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $40.76 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $32.00. The forecasts give the eXp World Holdings Inc. stock a price target range of $36.00 on the higher side while at least one analyst think the stock could plunge to a low of $28.00. The two limits represent an downside potential of -13.22% or -45.57%.

Earnings Forecast

Analysts estimate the earnings to increase 1,200.00% in the current quarter to $0.07, up from the -$0.03 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.25, up 45.90% from -$0.15 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.02 and $0.13. Wall Street estimates earnings per share to be at an average of $0.47 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 83 over the last 12 months, while SEC filings reveal that there have been 120 insider sales over the same period. Insiders have purchases 1,556,705 shares while those sold by company executives and officers stand at 1,896,208. The last 3 months have seen insiders trade a total of 340,872 and 745,000 in purchases and sales respectively.

MILES RANDALL D, a Director at the company, sold 15,000 shares worth $0.61 million at $40.69 per share on Aug 19. The CEO and Chairman of the Board had earlier sold another 10,000 EXPI shares valued at $0.4 million on Aug 25. The shares were sold at $39.78 per share. Sanford Glenn Darrel (CEO and Chairman of the Board) sold 10,000 shares at $35.96 per share on Aug 18 for a total of $0.36 million while SANFORD PENNY, (10% Owner) sold 20,000 shares on Aug 18 for $0.72 million with each share fetching $36.04.

Globalstar Inc. (AMEX:GSAT), on the other hand, is trading around $0.33 with a market cap of $568.17M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting $0 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

GSAT’s operating margin was negative on the trailing 12 months basis, remaining steady at -44.00%, while the operating expenses over the recent quarter were at $34.74 million. This represented a -14.42% of the company’s total revenues which amounted $30.36 million. With this in place, we can see that the company’s diluted EPS declined -$0.01 on the year-over-year period, shrinking to -$0.01 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 $923.55 million from $939.14 million over the previous quarter. The cash flow from operating activities totaled $8.86 million, significantly higher than the $1.81 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $6.62 million.

Insider activity

Insiders have transacted a total of 15 times at Globalstar Inc. over the last 6 months, with insider purchases undertaken 11 times and accounting for 1,665,183 shares. Insider sales totaled 190,106 shares over the same period, with these deals completed in 4 transactions. Looking at these numbers, we realize that net purchases over that period are 7.0 shares. Insiders now hold a total of 1.06B shares after the latest sales, with 0.20% net shares purchased.

Major holders

Insiders own 0.60% of the company shares, while shares held by institutions stand at 20.40% with a share float percentage of 608.15M. Investors are also buoyed by the number of investors in a company, with Globalstar Inc. having a total of 124 institutions that hold shares in the company. The top two institutional holders are Mudrick Capital Management, L.P. with over 103.27 million shares worth more than $33.73 million. As of Jun 29, 2020, Mudrick Capital Management, L.P. held 6.18% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 50.58 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $16.52 million and represent 3.03% of shares outstanding.