Investing action plan for The Chefs’ Warehouse Inc. (CHEF) And Sunworks Inc. (SUNW)

The Chefs’ Warehouse Inc. (NASDAQ: CHEF) shares are -59.70% down in the year-to-date (YTD) period and have moved 6.22% or $0.9 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +332.68% lower. Comparatively, the stock is -61.91% down YTD and 3.78% over the trailing 3-month period. If we look at the shorter duration, its week performance is 6.89% and 18.79% over the month.

Analyst Recommendations

On July 17, 2020, BTIG Research recommended the CHEF stock is a Neutral, while earlier, Piper Sandler had Downgrade the stock as a Neutral on July 30, 2020. 6 analysts offering the recommendations for the stock have a consensus rating of 2.50 to suggest that the CHEF stock is a “Moderate Buy. 0 of the 6 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $15.36 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $19.00. The forecasts give the The Chefs’ Warehouse Inc. stock a price target range of $30.00 on the higher side while at least one analyst think the stock could plunge to a low of $13.00. The two limits represent an upside potential of 48.8% or -18.15%.

Earnings Forecast

Analysts estimate the earnings to decrease -8.30% in the current quarter to -$0.31, down from the $0.23 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$1.54, down -26.80% from $1.01 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.31 and -$0.02. Wall Street estimates earnings per share to be at an average of $0.2 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 35 over the last 12 months, while SEC filings reveal that there have been 38 insider sales over the same period. Insiders have purchases 605,871 shares while those sold by company executives and officers stand at 445,689. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Pappas John, a Vice Chairman at the company, sold 44,757 shares worth $1.64 million at $36.61 per share on Oct 07. The Director had earlier bought another 955 CHEF shares valued at $18919.0 on Mar 12. The shares were bought at $19.81 per share.

Sunworks Inc. (NASDAQ:SUNW), on the other hand, is trading around $0.73 with a market cap of $14.11M and analyst research firms have a negative stance on its shares. 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 Sunworks Inc. (SUNW) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

SUNW’s operating margin was negative on the trailing 12 months basis, remaining steady at -22.10%, while the operating expenses over the recent quarter were at $3.0 million. This represented a 68.96% of the company’s total revenues which amounted $9.67 million. With this in place, we can see that the company’s diluted EPS declined -$0.09 on the year-over-year period, shrinking to -$0.02 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 $25.6 million from $27.83 million over the previous quarter. The cash flow from operating activities totaled -$4.1 million, significantly lower than the -$0.96 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$4.13 million.

Insider activity

Insiders have transacted a total of 0 times at Sunworks 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 285.69k shares after the latest sales, with 0.00% net shares purchased.

Major holders

Insiders own 1.72% of the company shares, while shares held by institutions stand at 2.00% with a share float percentage of 16.54M. Investors are also buoyed by the number of investors in a company, with Sunworks Inc. having a total of 25 institutions that hold shares in the company.