Exploring Strategic Opportunities: Boxlight Corporation (BOXL), Aerpio Pharmaceuticals Inc. (ARPO)

Boxlight Corporation (NASDAQ: BOXL) shares are 44.14% up in the year-to-date (YTD) period and have moved -5.33% or -$0.09 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +384.85% lower. Comparatively, the stock is -65.59% down YTD and 87.93% over the trailing 3-month period. If we look at the shorter duration, its week performance is -16.67% and -30.43% over the month.

Analyst Recommendations

On March 23, 2020, National Securities recommended the BOXL stock is a Neutral, while earlier, National Securities had Upgrade the stock as a Buy on May 19, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the BOXL stock is a “Strong Buy. 0 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 4 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.60. The forecasts give the Boxlight Corporation stock a price target range of $6.00 on the higher side while at least one analyst think the stock could plunge to a low of $2.75. The two limits represent an upside potential of 73.33% or 41.82%.

Earnings Forecast

Analysts estimate the earnings to decrease -60.00% in the current quarter to -$0.02, up from the -$0.03 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.28, down -8.70% from -$0.88 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.16 and -$0.03. Wall Street estimates earnings per share to be at an average of -$0.13 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 1 over the last 12 months, while SEC filings reveal that there have been 2 insider sales over the same period. Insiders have purchases 186,484 shares while those sold by company executives and officers stand at 2,468,708. The last 3 months have seen insiders trade a total of 0 and 2,468,708 in purchases and sales respectively.

K Laser Technology Inc., a 10% Owner at the company, sold 707,979 shares worth $0.71 million at $1.00 per share on Jun 05. The 10% Owner had earlier sold another 1,760,729 BOXL shares valued at $1.76 million on Jun 10. The shares were sold at $1.00 per share.

Aerpio Pharmaceuticals Inc. (NASDAQ:ARPO), on the other hand, is trading around $1.38 with a market cap of $59.95M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $2.00 and spell out a more modest performance – a 31.0% return. Some analysts are even forecasting -$0.15 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ARPO’s operating expenses over the recent quarter were at $9.26 million. This represented a 38.29% of the company’s total revenues which amounted $15.0 million. With this in place, we can see that the company’s diluted EPS inclined $0.23 on the year-over-year period, shrinking to -$0.14 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Mar 2020), the total assets figure advanced to $45.72 million from $35.7 million over the previous quarter. The cash flow from operating activities totaled $6.35 million, significantly higher than the -$14.22 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $6.34 million.

Insider activity

Insiders have transacted a total of 0 times at Aerpio Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 0.0 shares. Insiders now hold a total of 10.23M shares after the latest sales, with 0.00% net shares purchased.

Major holders

Insiders own 24.32% of the company shares, while shares held by institutions stand at 27.30% with a share float percentage of 34.44M. Investors are also buoyed by the number of investors in a company, with Aerpio Pharmaceuticals Inc. having a total of 24 institutions that hold shares in the company. The top two institutional holders are Orbimed Advisors LLC. with over 5.19 million shares worth more than $6.49 million. As of Jun 29, 2020, Orbimed Advisors LLC. held 12.80% of shares outstanding.

The other major institutional holder is Renaissance Technologies, LLC, with the investment firm holding over 1.82 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $2.27 million and represent 4.47% of shares outstanding.