Is there a cornucopia of returns in Bilibili Inc. (BILI) And Cinedigm Corp. (CIDM)

Bilibili Inc. (NASDAQ: BILI) shares are 142.43% up in the year-to-date (YTD) period and have moved -7.35% or -$3.58 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +134.49% lower. Comparatively, the stock is -11.92% down YTD and 39.19% over the trailing 3-month period. If we look at the shorter duration, its week performance is 0.16% and 8.07% over the month.

Analyst Recommendations

On May 27, 2020, Morgan Stanley recommended the BILI stock is a Overweight, while earlier, Nomura had Downgrade the stock as a Neutral on August 27, 2020. 18 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the BILI stock is a “Strong Buy. 0 of the 18 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 $45.14 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $44.25. The forecasts give the Bilibili Inc. stock a price target range of $60.00 on the higher side while at least one analyst think the stock could plunge to a low of $40.00. The two limits represent an upside potential of 24.77% or -12.85%.

Earnings Forecast

Analysts estimate the earnings to increase 9.10% in the current quarter to -$0.24, down from the -$0.15 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.83, up 66.30% from -$0.47 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.31 and -$0.15. Wall Street estimates earnings per share to be at an average of -$0.46 for the next year.

Cinedigm Corp. (NASDAQ:CIDM), on the other hand, is trading around $0.85 with a market cap of $95.77M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.31 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

CIDM’s operating margin was negative on the trailing 12 months basis, remaining steady at -12.30%, while the operating expenses over the recent quarter were at $6.63 million. This represented a -10.22% of the company’s total revenues which amounted $6.02 million. With this in place, we can see that the company’s diluted EPS declined -$0.21 on the year-over-year period, shrinking to -$0.13 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 $111.1 million from $110.44 million over the previous quarter. The cash flow from operating activities totaled -$3.74 million, significantly lower than the $4.01 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$3.82 million.

Insider activity

Insiders have transacted a total of 8 times at Cinedigm Corp. over the last 6 months, with insider purchases undertaken 5 times and accounting for 30,305,081 shares. Insider sales totaled 8,520,352 shares over the same period, with these deals completed in 3 transactions. Looking at these numbers, we realize that net purchases over that period are 2.0 shares. Insiders now hold a total of 57.32M shares after the latest sales, with 112.20% net shares purchased.

Major holders

Insiders own 7.40% of the company shares, while shares held by institutions stand at 9.30% with a share float percentage of 43.53M. Investors are also buoyed by the number of investors in a company, with Cinedigm Corp. having a total of 31 institutions that hold shares in the company.