Stocks That Should Surprise the Market: Viking Therapeutics Inc. (VKTX), Flux Power Holdings Inc. (FLUX)

Viking Therapeutics Inc. (NASDAQ: VKTX) shares are -7.23% down in the year-to-date (YTD) period and have moved -8.26% or -$0.67 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +128.22% lower. Comparatively, the stock is -10.98% down YTD and 4.06% over the trailing 3-month period. If we look at the shorter duration, its week performance is -4.74% and 12.56% over the month.

Analyst Recommendations

On May 05, 2020, Chardan Capital Markets recommended the VKTX stock is a Buy, while earlier, BMO Capital Markets had Initiated the stock as a Outperform on June 05, 2020. 14 analysts offering the recommendations for the stock have a consensus rating of 1.60 to suggest that the VKTX stock is a “Strong Buy. 0 of the 14 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 14 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $7.44. The forecasts give the Viking Therapeutics Inc. stock a price target range of $28.00 on the higher side while at least one analyst think the stock could plunge to a low of $9.00. The two limits represent an upside potential of 73.43% or 17.33%.

Earnings Forecast

Analysts estimate the earnings to increase 7.10% in the current quarter to -$0.15, down from the -$0.08 reported in the same quarter a year ago. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.26 and -$0.14. Wall Street estimates earnings per share to be at an average of -$0.82 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 1 over the last 12 months, while SEC filings reveal that there have been 4 insider sales over the same period. Insiders have purchases 153,333 shares while those sold by company executives and officers stand at 25,021. The last 3 months have seen insiders trade a total of 0 and 13,000 in purchases and sales respectively.

LIGAND PHARMACEUTICALS INC, a 10% Owner at the company, sold 70,000 shares worth $0.56 million at $8.02 per share on Aug 25. The 10% Owner had earlier sold another 94,488 VKTX shares valued at $0.77 million on Aug 26. The shares were sold at $8.11 per share.

Flux Power Holdings Inc. (NASDAQ:FLUX), on the other hand, is trading around $6.07 with a market cap of $69.99M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting $0 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

FLUX’s operating margin was negative on the trailing 12 months basis, remaining steady at -95.90%, while the operating expenses over the recent quarter were at $4.51 million. This represented a 10.65% of the company’s total revenues which amounted $5.05 million. With this in place, we can see that the company’s diluted EPS declined -$0.78 on the year-over-year period, shrinking to -$0.75 as given in the last earnings report.

In terms of the balance sheet & cash flow as of Current Qtr., the total assets figure advanced to $11.77 million from $11.33 million over the previous quarter. The cash flow from operating activities totaled -$5.74 million, significantly higher than the -$7.05 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$5.89 million.

Insider activity

Insiders have transacted a total of 7 times at Flux Power Holdings Inc. over the last 6 months, with insider purchases undertaken 7 times and accounting for 265,625 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 7.0 shares. Insiders now hold a total of 3.23M shares after the latest sales, with 80.50% net shares purchased.

Major holders

Insiders own 1.10% of the company shares, while shares held by institutions stand at 10.10% with a share float percentage of 3.00M. Investors are also buoyed by the number of investors in a company, with Flux Power Holdings Inc. having a total of 1 institutions that hold shares in the company.