It makes sense to watch Electrameccanica Vehicles Corp. (SOLO) And Eventbrite Inc. (EB)

Electrameccanica Vehicles Corp. (NASDAQ: SOLO) shares are 34.42% up in the year-to-date (YTD) period and have moved -5.86% or -$0.18 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +224.68% lower. Comparatively, the stock is -51.83% down YTD and 153.51% over the trailing 3-month period. If we look at the shorter duration, its week performance is 9.89% and -16.23% over the month.

Analyst Recommendations

On March 20, 2019, The Benchmark Company recommended the SOLO stock is a Speculative Buy, while earlier, ROTH Capital had Initiated the stock as a Buy on July 09, 2019. 2 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the SOLO stock is a “Moderate Buy. 0 of the 2 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $2.89. The forecasts give the Electrameccanica Vehicles Corp. stock a price target range of $7.50 on the higher side while at least one analyst think the stock could plunge to a low of $4.00. The two limits represent an upside potential of 61.47% or 27.75%.

Earnings Forecast

Analysts estimate the earnings to decrease -61.50% in the current quarter to -$0.11, up from the -$0.14 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.57, up 35.30% from -$0.6 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.19 and -$0.08. Wall Street estimates earnings per share to be at an average of -$0.52 for the next year.

Eventbrite Inc. (NYSE:EB), on the other hand, is trading around $10.49 with a market cap of $1.01B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $11.25 and spell out a more modest performance – a 6.76% return. Some analysts are even forecasting -$2.81 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

EB’s operating margin was negative on the trailing 12 months basis, remaining steady at -99.10%, while the operating expenses over the recent quarter were at $34.54 million. This represented a -311.48% of the company’s total revenues which amounted $8.39 million. With this in place, we can see that the company’s diluted EPS declined -$0.44 on the year-over-year period, shrinking to -$0.18 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 $855.67 million from $682.02 million over the previous quarter. The cash flow from operating activities totaled -$126.72 million, significantly lower than the $57.33 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$127.94 million.

Insider activity

Insiders have transacted a total of 39 times at Eventbrite Inc. over the last 6 months, with insider purchases undertaken 31 times and accounting for 120,511 shares. Insider sales totaled 7,649 shares over the same period, with these deals completed in 8 transactions. Looking at these numbers, we realize that net purchases over that period are 23.0 shares. Insiders now hold a total of 171.71k shares after the latest sales, with -218.40% net shares purchased.

Major holders

Insiders own 0.40% of the company shares, while shares held by institutions stand at 90.30% with a share float percentage of 66.19M. Investors are also buoyed by the number of investors in a company, with Eventbrite Inc. having a total of 200 institutions that hold shares in the company. The top two institutional holders are Cadian Capital Management, LLC with over 5.72 million shares worth more than $49.01 million. As of Jun 29, 2020, Cadian Capital Management, LLC held 8.48% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 5.7 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $48.87 million and represent 8.45% of shares outstanding.