Investors have great interest in Capital One Financial Corporation (COF), Forum Energy Technologies Inc. (FET)

Capital One Financial Corporation (NYSE: COF) shares are -32.36% down in the year-to-date (YTD) period and have moved 5.02% or $3.33 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +83.18% lower. Comparatively, the stock is -35.30% down YTD and 2.31% over the trailing 3-month period. If we look at the shorter duration, its week performance is 8.31% and 4.87% over the month.

Analyst Recommendations

On June 22, 2020, UBS recommended the COF stock is a Buy, while earlier, Wolfe Research had Initiated the stock as a Outperform on July 31, 2020. 23 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the COF stock is a “Moderate Buy. 2 of the 23 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 15 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $69.61 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $79.77. The forecasts give the Capital One Financial Corporation stock a price target range of $118.00 on the higher side while at least one analyst think the stock could plunge to a low of $55.50. The two limits represent an upside potential of 41.01% or -25.42%.

Earnings Forecast

Analysts estimate the earnings to decrease -31.50% in the current quarter to $1.38, down from the $2.69 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.45, down -4.10% from $11.05 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.77 and $3.63. Wall Street estimates earnings per share to be at an average of $7.08 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 87 over the last 12 months, while SEC filings reveal that there have been 123 insider sales over the same period. Insiders have purchases 1,381,520 shares while those sold by company executives and officers stand at 659,068. The last 3 months have seen insiders trade a total of 53,937 and 14,134 in purchases and sales respectively.

WARNER BRADFORD H, a Director at the company, sold 8,410 shares worth $0.71 million at $85.00 per share on Jun 05. The Controller had earlier sold another 5,724 COF shares valued at $0.4 million on Aug 14. The shares were sold at $69.11 per share. Golden Timothy P (Controller) sold 3,334 shares at $57.63 per share on May 14 for a total of $0.19 million while Santos Kleber, (Pres., Retail & Direct Banking) sold 2,263 shares on Mar 19 for $97490.0 with each share fetching $43.08.

Forum Energy Technologies Inc. (NYSE:FET), on the other hand, is trading around $0.57 with a market cap of $71.67M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$1.04 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

FET’s operating margin was negative on the trailing 12 months basis, remaining steady at -79.40%, while the operating expenses over the recent quarter were at $48.3 million. This represented a 57.36% of the company’s total revenues which amounted $113.28 million. With this in place, we can see that the company’s diluted EPS declined -$0.05 on the year-over-year period, shrinking to -$0.12 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 $1.07 billion from $1.15 billion over the previous quarter. The cash flow from operating activities totaled -$2.08 million, significantly lower than the $40.78 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$3.62 million.

Insider activity

Insiders have transacted a total of 16 times at Forum Energy Technologies Inc. over the last 6 months, with insider purchases undertaken 14 times and accounting for 2,338,750 shares. Insider sales totaled 791 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are 12.0 shares. Insiders now hold a total of 15.19M shares after the latest sales, with 35.20% net shares purchased.

Major holders

Insiders own 7.00% of the company shares, while shares held by institutions stand at 48.60% with a share float percentage of 72.48M. Investors are also buoyed by the number of investors in a company, with Forum Energy Technologies Inc. having a total of 146 institutions that hold shares in the company. The top two institutional holders are SCF Partners, Inc. with over 17.78 million shares worth more than $9.39 million. As of Jun 29, 2020, SCF Partners, Inc. held 15.97% of shares outstanding.

The other major institutional holder is Wells Fargo & Company, with the investment firm holding over 4.89 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $2.58 million and represent 4.39% of shares outstanding.