Stocks That Should Surprise the Market: The Children’s Place Inc. (PLCE), Callon Petroleum Company (CPE)

The Children’s Place Inc. (NASDAQ: PLCE) shares are -66.76% down in the year-to-date (YTD) period and have moved 9.92% or $1.87 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +124.65% lower. Comparatively, the stock is -71.34% down YTD and -50.10% over the trailing 3-month period. If we look at the shorter duration, its week performance is -4.37% and -22.38% over the month.

Analyst Recommendations

On August 26, 2020, Monness Crespi & Hardt recommended the PLCE stock is a Buy, while earlier, Telsey Advisory Group had Reiterated the stock as a Outperform on August 26, 2020. 9 analysts offering the recommendations for the stock have a consensus rating of 2.70 to suggest that the PLCE stock is a “Moderate Buy. 0 of the 9 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $20.78. The forecasts give the The Children’s Place Inc. stock a price target range of $55.00 on the higher side while at least one analyst think the stock could plunge to a low of $14.00. The two limits represent an upside potential of 62.22% or -48.43%.

Earnings Forecast

Analysts estimate the earnings to decrease -29.80% in the current quarter to $1.03, down from the $3.03 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$1.74, down -23.50% from $5.36 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$1.5 and $1.07. Wall Street estimates earnings per share to be at an average of $2.51 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 37 over the last 12 months, while SEC filings reveal that there have been 26 insider sales over the same period. Insiders have purchases 374,570 shares while those sold by company executives and officers stand at 19,624. The last 3 months have seen insiders trade a total of 239,354 and 0 in purchases and sales respectively.

BACHMAN JOHN E., a Director at the company, bought 3,200 shares worth $79808.0 at $24.94 per share on Apr 09. The Director had earlier bought another 2,000 PLCE shares valued at $78380.0 on Jun 22. The shares were bought at $39.19 per share. MATTHEWS NORMAN S (Chairman of the Board) bought 28,300 shares at $15.89 per share on Apr 02 for a total of $0.45 million while MATTHEWS NORMAN S, (Chairman of the Board) bought 8,500 shares on Mar 23 for $0.15 million with each share fetching $17.28.

Callon Petroleum Company (NYSE:CPE), on the other hand, is trading around $6.91 with a market cap of $290.98M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting $1.36 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Callon Petroleum Company (CPE) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CPE’s operating expenses over the recent quarter were at $22.68 million. This represented a 85.57% of the company’s total revenues which amounted $157.23 million. With this in place, we can see that the company’s diluted EPS declined -$39.41 on the year-over-year period, growing to $2.42 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 $5.81 billion from $7.38 billion over the previous quarter. The cash flow from operating activities totaled $289.5 million, significantly higher than the $225.05 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$141.07 million.

Insider activity

Insiders have transacted a total of 35 times at Callon Petroleum Company over the last 6 months, with insider purchases undertaken 30 times and accounting for 2,672,031 shares. Insider sales totaled 60,685 shares over the same period, with these deals completed in 5 transactions. Looking at these numbers, we realize that net purchases over that period are 25.0 shares. Insiders now hold a total of 864.11k shares after the latest sales, with -144.90% net shares purchased.

Major holders

Insiders own 2.00% of the company shares, while shares held by institutions stand at 48.10% with a share float percentage of 38.64M. Investors are also buoyed by the number of investors in a company, with Callon Petroleum Company having a total of 387 institutions that hold shares in the company.